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Decision Making, Learning, Creativity, and EntrepreneurshipDecision Making- The process by which managers respond to opportunities and threats by analyzing options, and making determinations about specific organizational goals and Types of decision making: ü Programmed Decisions – Routine, virtually automatic decision making that follows established rules or guidelines. • Managers have made the same decision many times before • There are rules or guidelines to follow based on experience with past decisions • Little ambiguity involved ü Non-Programmed Decisions – Nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats.
• Intuition - feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions • Reasoned judgment- decisions that take time and effort to make and result from careful information gathering, generation of alternatives, and evaluation of alternatives. DECISION MAKING PROCESS.
Risk- The degree of probability that the possible outcomes of a particular course of action will occur. Uncertainty- the probabilities of alternative outcomes cannot be determined and future outcomes are unknown. Ambiguous Information- Information that can be interpreted in multiple and often conflicting ways. Time constraints and information costs- managers have neither the time nor money to search for all possible alternatives and evaluate potential consequences Satisficing- managers tend to choose satisfactory decisions, dropping looking for a perfect decision Step 1. Recognize Need for a Decision- Sparked by an event such as environment changes. Managers must first realize that a decision must be made. Step 2. Generate Alternatives- Managers must develop alternative courses of action
Step 4. Choose Among Alternatives -Rank the various alternatives and make a decision Tendency is for managers to ignore critical information, even when available Step 5. Implement Chosen Alternative- Managers must now carry out the alternative. Often a decision is made and not implemented. Step 6. Learn From Feedback- Compare what happened to what was expected to happen. Explore if all went accordingly. Derive conclusions.
Group Decision Making: • Superior to individual making • Choices less likely to fall victim to bias • Able to draw on combined skills of group members • Improve ability to generate feasible alternatives • Allows managers to process more information • Managers affected by decisions agree to cooperate
TYPES OF GROUP DECISION MAKING: -Groupthink- groups seek to agree at all cost -Devil’s Advocacy- critical analysis of a preferred alternative to point its strengths and weaknesses before it is implemented.
ORGANIZATIONAL LEARNING AND CREATIVITY
Organizational Learning- The process through which managers seek to improve a employee’s understanding of the organization to raise effectiveness.
• Creativity- ability to discover original and novel ideas • Innovation- implementing creative ideas in an organization.
• Brainstorming – Managers meet face-to-face to generate and debate many alternatives. – Group members are not allowed to evaluate alternatives until all alternatives are listed. – When all are listed, then the pros and cons of each are discussed and a short list created. – Bad brainstorming leads to ‘production blocking’ (no conclusions) • Nominal Group Technique- group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives • Delphi Technique- members do not meet face-to-face but respond in writing to questions posed by the group leader
Creative actions: • Entrepreneur - notices opportunities and decides how to mobilize the resources necessary to produce new and improved goods and services. • Social entrepreneurs- pursue initiatives and opportunities to address social problems and needs in order to improve society and well-being • Intrapreneur- works inside an organization and notices opportunities to develop new or improved products and better ways to make them
• Entrepreneurship Mobilization of resources to take advantage of an opportunity to provide customers with new and improved goods and services • Product champion- a manager who takes “ownership” of a project and provides the leadership and vision that take a product from the idea stage to the final customer • Skunkworks- a group who is deliberately separated from normal operations to encourage them to devote all their attention to developing new products
Date: 2015-02-16; view: 3082
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