|Decision Making, Creativity, and Ethics|
1. Compare and contrast the rational model of decision making and the bounded rationality model. The rational decision-making model consists of identifying the problem, generating alternative solutions, evaluating and selecting a solution, and implementing and evaluating the solution. Research indicates that decision makers do not follow the series of steps outlined in the rational model. The bounded rationality model is guided by a decision maker's bounded rationality. Bounded rationality means that decision makers are bounded or restricted by a variety of constraints when making decisions. The normative model suggests that decision making is characterized by (a) limited information processing, (b) the use of judgmental heuristics, and (c) satisficing.
2. Explain the model of decision-making styles and the stages of the creative process. The model of decision-making styles is based on the idea that styles vary along two different dimensions: value orientation and tolerance for ambiguity. When these two dimensions are combined, they form four styles of decision making: directive, analytical, conceptual, and behavioural. People with a directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns. Analytics have a higher tolerance for ambiguity and are characterized by a tendency to overanalyze a situation. People with a conceptual style have a high threshold for ambiguity and tend to focus on people or social aspects of a work situation. This behavioural style is the most people oriented of the four styles. Creativity is defined as the process of using intelligence, imagination, and skill to develop a new or novel product, object, process, or thought. There are five stages of the creative process: preparation, concentration, incubation, illumination, and verification.
3. Explain how participative management affects performance. Participative management reflects the extent to which employees participate in setting goals, making decisions, solving problems, and making changes in the organization. Participative management is expected to increase motivation because it helps employees fulfill three basic needs: (a) autonomy, (b) meaningfulness of work, and (c) interpersonal contact. Participative management does not work in all situations. The design of work and the level of trust between management and employees influence the effectiveness of participative management.
4. Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making. Group problem-solving techniques facilitate better decision making within groups. Brainstorming is used to help groups generate multiple ideas and alternatives for solving problems. The nominal group technique assists groups both to generate ideas and to evaluate and select solutions. The Delphi technique is a group process that anonymously generates ideas or judgments from physically dispersed experts. The purpose of computer-aided decision making is to reduce consensus roadblocks while collecting more information in a shorter period of time.
5. Specify at least four actions managers can take to improve an organization's ethical climate. They can do so by (a) behaving ethically themselves, (b) screening potential employees, (c) developing a code of ethics, (d) providing ethics training, (e) reinforcing and rewarding ethical behaviour, and (f) creating specific positions within the organization to deal with ethics.