Decision Making

• Normative model- "perfect world"
•     also called rational model formed from economic theories
• 4 steps (not realistic)
• 1 list all alternatives
• 2. list consequences of each alternative
• 3. rank choices in order of preference
• 4. Pick most desireable alternative

• behavioral model- how people behave in real world
•       takes into account limitations
• 3 steps
• 1 engage in a limited search
• 2. use heuristics to shorten process
• 3 satisfice- chose acceptable option
• (optimizers vs satisficers)

• Behavioral model- how they decide in a complex real-world setting
• steps not sequential
• -recognize situation typicality (based on exp)
• -generate options serially, most typical first
• make decision quickly
• act fast analyze later

• ease of recall- vividness and recency
• retrievability- memory structure(alphabetical, numerical, layout)
• Insensitivity to base rates- tend to ignore base rates when descriptive info is given
• insensitivity to sample size- tendency to ignore ample size even when making critical decisions (small pops are more susceptible to outliers)
• Misconception of chance- belief that random and non-random events balance out
• Conjunction fallacy- believe a conjunction is more common than a single event because it "Feels" right
• insufficient anchor adjustment- difficulty adjusting values away from inital point when determining final value
• overconfidence- dunning-kruger
• Confirmation trap- seek info that supports confirming and ignor disconfirming info
• hindsight curse- we believe we predicted the event more, after the event occured

• groups outperform on demonstrable tasks (obvious answer tasks)
• prone to overconfidence
• Teams required to reach consensus perform best

• groupthink- 
• Escalation of commitment-
• conformity to pressure-
• group polarization-

Occurs when team members place consensus above all other priorities

                (including being correct)

Involves a deterioration of mental efficiency and moral judgement as group pressures towards a conformity of opinion

                “With us or against”

Illusion of invulnerability- members ignore obvious danger, take extreme risk, and are overly optimistic

Collective Rationalization-Members discredit and explain away warnings contrary to group thinking

Illusion of Morality- Members believe their decisions are morally correct, ignoring the ethical consequences of their decisions

Excessive stereotyping- the group constructs negative stereotypes of rival outside the group

Pressure for conformity- members pressure any in the group who express arguments against the group’s, stereotypes, illusions, or commitments, viewing such opposition as disloyalty

Self-censorship- members withhold their dissenting views and counter-arguments

Illusion of unanimity- members perceive falsely that everyone agrees with the group’s decision; silence is seen as consent

Mindguards- some members appoint themselves to the role of protecting the group from adverse information that might threaten group complacency

• small teams
• different perspectives
• appoint devils advocate
• plan b
• beware time pressures
• include outside experts

• continuing on a failing course 
• reasons:
• ego
• sunk costs
• ways to combat: 
• set budget/limits
• recognize sunk costs
• external review

• feel unable to disagree because they assume everyone else agrees
•     

A type of pluralistic ignorance- group members adhere to a position because they feel other members desire it.

Reasons it occurs-

                Presence of someone with expertise

                Lack of confidence in ability to contribute

                Presentation of a compelling argument

Ways to combat:

                Conduct a private vote

                Provide a formal forum for controversial views

                Minimize status differences

The tendency for group discussion to intensify group opinion, producing more extreme judgements than might be obtained by pooling individuals’ views separately.

Reasons it occurs:

                Need to be right

                Need to be liked

Ways to combat:

                Poll people individually before group discussion

                Allows for everyone to express views

production of novel and useful ideas (original idea)

- the successful implementation of creative ideas in organizations (making it better)

Creativity comes from creative types

Money is a creativity motivator- actually decreases

Time pressure fuesl creativity- actually decreases

Fear forces breakthroughs – contracts vision

Competition beats collaboration

A streamlined organization is a creative Organization

Alternative uses task

Test- come up with ideas for use of a box

Fluency- a simple of how many ideas a person (or team) generates (Amount)

                “creativity isn’t about wild talent as much as it’s about productivity. To find a few ideas that work, you need to try a lot that don’t.”

Flexibility- a measure of how many types of ideas a person (or team) generates (Different categories)

Originality- the ability to generate unusual solutions and unique solutions to a problem. (Unique ideas) typically the one conflated with creativity

Convergent thinking-

            Thinking that proceeds toward a single answer

            Teams better than individual

Divergent thinking –

            Thinking that moves outward from a problem in many directions and does not involve boundaries

            Conflict stimulates divergent thinking

            Individuals better at this tham teams

Need both types of thinking to generate a solution

Perhaps start process as individuals (Divergent) and then move to teams (convergent)

            Need both to find an answer and one that is unique

Social loafing-

            The tendency of some individuals to do less work in a group than they would alone

Conformity-

            Conforming with the group in order to fit in and not sharing novel ideas

Production blocking-

            Occurs when group members cannot express ideas because others are presenting their ideas

Performance matching-

            Tendency to match performance to that of the least productive member

Increase task conflict- use devils advocacy

Modified brainstorming- nominal group technique

Diversify the team

Promote deliberate exploration of new ideas

Set rules

Fluid membership

Networking

Trained facilitators

Play-have fun

Procrastination- not in sense of putting off to not deal with it, but putting it aside to come up with different/new ideas

Creative work environments

            Workplace cultures in which workers perceive that new ideas are encourage

Flow

            The psychological state of effortlessness in which you become absorbed in your work and time seems to pass quickly

Big P politics can benefit you, but will benefit the organization as well

Little p politics is selfish and possibly underhanded

The ability to get another person to do something they would not ordinarily do

Types

            Formal

            Informal

Power that origninates from a person’s position in the organization

            Sources:

                        Legitimate power- power to control and use organization resources

                        Reward Power- power to give rewards

                        Coercive Power- power to give or withhold punishment

                        Informational Power- power stemming from access to and control over info.

Power that originates from personal characteristics such as personality, skills, and capabilities

            Sources:

                        Expert power- power which stems from superior ability or expertise

Referent Power- power that stems from being liked, admired, respected (Most powerful)

Charismatic power- a rare and intense form of personal power that comes from personality (a magnatism, less likely in business, buy into the idea of the leader (Hitler, Ghandi) people who have this go into entertainment, politics, ministry, we confuse this with actual power because theres money and power so we assume they’re charismatic

Recognize WHO has the power

            Control the agenda

            Bring in an outside expert

            Build coalitions and alliances

-coalitions are a group of 2 or more individuals who have similar interests and join together to achieve their goals

-build with people who are trustworthy and reliable, and with a person who has a reputation for good

Activities in which one engages in order to increase one’s power and pursue one’s interests

Playing Politics-

            -Make sure everyone benefits

            -Ask for feedback especially from those in power (learn and build relationships)

                        -People in power feel good for giving advice

            -Remember the “Law of Reciprocity”

-hardwired to keep track of favors, if someone does something for us we feel we owe them, not equal though, be careful with who you get into debt

            -Success breeds contempt and opposition

            -Think one step ahead

                        Treat it like a game, be strategic not reactive, think through these actions,

Gives you a better idea of you political strengths and weaknesses

            4 basic skills

                        Social astuteness

                        Interpersonal influence

                        Networking ability

                        Apparent Sincerity

Being an astute observer of others and attune to diverse social situations

            Strong powers of discernment and high self-awareness

Having a subtle and convincing personal style that allows you to exert influence on others

            Able to adapt behavior to situation

Being able to develop and use diverse networks

            Tend to easily develop friendships and build strong alliances and coalitions

Being able to appear to others as having integrity, sincerity, authenticity.

            Tend to inspire trust and confidence in and from others

Social Astuteness

                        Watch others carefully and think about what might motivate their behavior (Don’t take things at face value)

            Interpersonal influence

                        Develop through the use of influence strategies

            Networking ability

                        Network, network, network both face to face and virtually (women’s initiative a great place but diversify)

            Apparent sincerity

Work on developing emotional connections with others (Ask, listen, question, and share) find 3-4 people when networking and have a legitimate conversation, be diverse as well.

Reciprocation

                        I’ll scratch your back if you scratch mine

                        The rule enforces inivideted debt

                        The rule can trigger unequal exchanges

            Framing-        

-Frames are filters that force us to look at the world from a particular, limited perspective (looking at the negative, looking at discounts instead of just reduced prices)

            Social Proof

-The principle of social proof states that we figure out what is correct (and desirable) by watching what others do.

                        -We view a behavior as proper if we see others performing it.

                        -3 seems to be the magic number, 1 ignored

Impression management is the way we try to control perceptions that others have of us

                        Tactics

                                    Name dropping

                                    Behavioral matching

                                    Self-promotion

                                    Conforming to norms

                                    Flattery

                                    Being consistent

                        Fake it till you make it

                                    Dress and appearance- dress to the job you want

                                    Physical presence- space you take up, stand tall, not hunching, heels give advantage like height and pushing forward to project dominance

                                    Voice- speed at which you speak and projection quality      

                                                Uptalk- ending your sentences as a question, ending on an upnote, versus a flat note or down

                                    Physical Space- Corner office, bigger office, people take this serious because it sends that power message

                                    Time/ calendar power- if you’re busy you’re powerful

                                    Office “Bling”- anything that implies you’re part of the

The act of influencing others t0ward a goal

            Two types

            Formal leader- hold a position of authority and may utilize the power that comes from their position, as well as their personal power to influence others

            Informal leader- those without formal position of authority within the org but demonstrate leadership by influencing those around them through personal forms of power.

Based on the idea that there are specific traits that distinguish leaders.

            Intellignence

            Self esteem

            Integrity

            (implicitly expected, male, height, deep voices,)

Problems

            Not all traits are relevant

            Someone might have traits and not be in leadership roles

            Does not allow for “Learning” (biggest problem)

Based on the idea that there are particular leadership behaviors

                        Consideration behaviors (people oriented behaviors)

                                    Showing concern for employees feelings and treating employees with respect

                        Initiating structure behaviors (task-oriented behaviors)

                                    Structuring the roles of subordinates, providing them with instructions, and behaving in ways that will increase the performance of the group.

                        (need both to truly be successful/good)

Problems-

            Doesn’t allow for enough specificity in any particular area

Authoritarian decision making

                        When the leader makes the decision alone, without involving employees in the D.M. process

            Democratic decision making

                        When the leader includes the employees in the D.M. process (typically the best)

            Laissez-faire decision making

                        When the leader leaves the employees alone to make decision

Focuses on behaviors that a leader can use to motivate

•             4 behaviors:
• Directive
• Leades provide specific directions to employees
• Supportive
• Leaders provide emotional support to employees
• Participative
• Leaders make sure employees are involved in making important decisions
• Achievement oriented
• Leaders who set challenging goals and encourage employees to mee those goals

Focuses on how much involvement leaders should get from employee when making a decision

            Autocratic (Decide)

                        Leaders make decision alone without other members

            Consulatative

                        Leaders shares problems with individuals (and or group)

            Facilitative

                        Leader share info wit group and acts as facilitator, but is just one of the decision makers

            Delegative

                        Leader lets team decide

Transformational leadership:

            Leaders who align employees goals with the leaders goals by using charisma, inspirational motivation and intellectual stimulation

Transactional leadership:

            Leaders who ensure that employees behave correctly and provide resources in return (carrot method)

Charismatic leadership

            Leaders who inspire confidence in, commitment to, and admiration for the leader

                        (cults, Nazism, etc)

360 leader

            An approach that leaders can be anywhere and can lead from anywhere in the organization-up, down, and across

            (lead up, across and down, help your boss, help your associates, help the subordinates)

Leader-member exchange theory (LMX)

            An approach that suggest that the type of relationship that leaders have with followers is key to understanding how the leader influences others

Servant leadership

            An approach that defines the leaders roles as serving the needs of others

            (volunteering, doing thigs that are helpful, donate salary back to company)

Authentic leadership

            An approach that advises leaders to stay true to their values

                        (some behaviors aren’t great traits for authenticity, authentic leaders aren’t necessarily enviable)

a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior

Socialization

• Norms
•       

Culture questions

            Who has a great culture?      

            Why?

                        Practices

                        Attributes

                        (culture informs, people want to do business with good cultures)

An organizations culture may be one of its strongest assets or its biggest liability

            Organizational culture is an effective control mechanism dictating employee behavior

            Culture is often related to increase performance

Organizations which have a rare and hard to imitate culture may enjoy a competitive advantage.

(turnover costs is hidden and spending money to keep people happy can be profitable)

Enhance mutual trust and cooperation

Have less conflict and more efficient decision making proceses

Facilitate open comminiation

Create a stron sense of identification

Create a shared understanding

Have greater employee engagement- leads to higher satisfaction, performance, productivity and profitability and decrease turnover.

(culture should not be allowed to just happen, can be costly if you do; companies that invest in multiple rounds of interviews spend money to make sure their company hires the right people)

            CULTURE IS BOTH INTERNAL AND EXTERNAL

            YOU SHOULD BE STRATEGIC ABOUT CREATING CULTURE

Cultural symbols- words, gestures and pictures that carry a particular meaning within a culture (above the water)

            Shared Behaviors- norms and behaviors of individuals in organization (both)

            Cultural Values- collective beliefs and feelings about what is good, rational, valuable (below)

            Shared assumptions- deepest, most basic beliefs about how things should be done (below)

Bureaucratic culture


            Clan Culture


            Entreprenurial Culture


            Market Culture

Value rules, SOSPS and heirarchial coordination to achieve efficiency, predictability, and sustainability

                        Ha an internal focus, which produces a more formalized and structured work environment, and values stability and control over flexibility.

                        (typically older and larger groups, Sears, Government, Military, not interested in change)

Values tradition, loyalty, personal commitment, teamwork, and social influence.

                        Has an internal focus and values flexibility rather than stability and control.

                        (Patagonia, Marines, small business with very passionate founders (arts and crafts)

Values risk taking in order to experiment, innovate, and be on the cutting edge.

                        Has an external focus and values flexibility.

                        (Tesla, GoPro, old Apple, SpaceX) most move into market space

Values measurable and demanding goals (especially financial) because it is important to make profit and be competitive

                        Has a strong external focus and values stability and control

Clan Culture                Flexibility and choice           Entrepreneurial Culture

Internal focus------------------      I       ----------------    External Focus

Bureaucratic Culture   Stability and control             Market Culture

(not one or bad/good culture, need to adjust according)

Should start with a vision of culture (strategic choice about what our culture is)

Recruitment and selection of people who “Match”

Then we socialize newcomers

We continue socialization process throughout life of organization

            Storytelling

            Promote employes who live the values and use them as a role model for new employees

We socialize in order to:

                        Make sure that ecceryone is working toward the “correct” goals of the org

                        Build commitment to the organization

                        Build culture

            Socialization is the process of creating uniform values and norms

                        Values and norms : standards for conduct for behaviors that are considered important by most group members

                                    Trust, ethics, having fun, great customer service…

Examples of key models (representatives of company gung-ho individuals)

Examples of peers (what people around us are doing)

Explicit instructions (like attendance at events)

Rewards and punishments for efforts

            Ways to strengthen the socialization process:

                        Individual beliefs where strong ties into social group

                        Induced through social isolation (only one interpretation given)

                                    (often good, sometimes bad)

Rules of conduct for behaviors that are considered important by most group members.

            Help to create and reinforce culture.

                        (not necessarily endorced or encourage or positive)

            How are they developed:

                        Explicit statements by group members

                        Critical events int the groups history (aggie bonfire)

                        Carry-over behaviors

                        Primacy (first behavior that occurs becomes standard)

            Why norms are enforced:

                        Help group/ organization survive and be productive

                        Help clarify behavioral expectations for members

                        Help clarify group/orgs unique identity and central values

                        Help individuals avoid embarrassing situations

What managers and teams pay attention to

            If a manager pays attention to it, its what matters

Incentives, rewards, and status

            Reward those living up to expectations (must be valuable to recipient)

Reactions to incidents and crises

            Biggest asset or liability

Role-modeling, teaching, and coaching

Recruitment, selection, and promotion

Rites and ceremonies

Organizational stories

Align layers of culture

            Every level connected and clear cultural value to follow

People are different- strive to understand those differences and meet people where they are and you will make a much better manager

Negotiate when you want or need something in your organization- both on your behalf and on behalf of others

Build relationships- helps with just about every area of managing from communication to conflict managenment

Give and ask for feedback- one of the cheapest and easiest ways to be a better manager

Have fun- you will spend a lot of time in your job, so make sure you are doing work and working with people you enjoy