Objective [1]
Compare and contrast the rational model of decision making and Simon’s normative
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. Simon’s normative
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.
Objective [2] Discuss knowledge management and techniques used by companies to increase
knowledge sharing. Knowledge management involves the implementation of systems
and practices that increase the sharing of knowledge and information throughout
an organization. There are two types of knowledge that impact the quality of
decisions: tacit knowledge and explicit knowledge. Organizations use computer
systems to share explicit knowledge. Tacit knowledge is shared by observing,
participating, or working with experts or coaches. Mentoring, informal networking,
meetings, and design of office space also influence knowledge sharing. Objective [3]
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 behavioral. 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. The behavioral 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. Objective [4]
Summarize the pros and cons of involving groups in the decision-making process.
There are both pros and cons to involving groups in the decision-making process
(see Table 9–1). Although research shows that groups typically outperform the
average individual, managers need to use a contingency approach when determining
whether to include others in the decision-making process.
Objective [5]
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.
Objective [6] 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. |