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Topic 7 Decision Making and Creativity

The document discusses decision making, creativity, and employee involvement in organizational decision processes. It defines decision making as consciously choosing between alternatives to achieve a desired outcome. Rational decision making involves identifying problems, choosing a process, developing alternatives, selecting the best option, implementing it, and evaluating the results. Intuitive and postdecisional justification in decision making are also examined. The document also explores escalation of commitment, evaluating decisions more effectively, defining and assessing employee involvement, and defining creativity and characteristics of creative people and work environments.

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SHI QI LEE
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Download as PPT, PDF, TXT or read online on Scribd
8 views

Topic 7 Decision Making and Creativity

The document discusses decision making, creativity, and employee involvement in organizational decision processes. It defines decision making as consciously choosing between alternatives to achieve a desired outcome. Rational decision making involves identifying problems, choosing a process, developing alternatives, selecting the best option, implementing it, and evaluating the results. Intuitive and postdecisional justification in decision making are also examined. The document also explores escalation of commitment, evaluating decisions more effectively, defining and assessing employee involvement, and defining creativity and characteristics of creative people and work environments.

Uploaded by

SHI QI LEE
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 14

Topic 7:

Decision Making and


Creativity

1-1
Decision Making Defined

Decision making is a
conscious process of
making choices among
one or more alternatives
with the intention of moving
toward some desired state
of affairs.

7-2
Rational Choice Decision Process

 Identify problem/opportunity
 Choose decision process
• e.g. non-programmed vs
programmed
 Develop/identify alternatives
 Choose best alternative
 Implement choice
 Evaluate choice

7-3
Intuitive Decision Making

 Ability to know when a problem or opportunity


exists and select the best course of action
without conscious reasoning
 Intuition as emotional experience
• Gut feelings are emotional signals
• Not all emotional signals are intuition

 Intuition as rapid nonconscious analysis

7-4
Postdecisional Justification

 Tendency to inflate quality of the selected


option; forget or downplay rejected
alternatives
 Results from need to maintain a positive self-
identity
 Initially produces excessively optimistic
evaluation of decision

7-5
Escalation of Commitment

 The tendency to repeat an apparently bad


decision or allocate more resources to a
failing course of action
 Four main causes of escalation:
• Self-justification
• Prospect theory effect
• Perceptual blinders
• Closing costs

7-6
Evaluating Decisions More
Effectively
1. Separate decision choosers from evaluators
2. Establish a preset level to abandon the
project
3. Find sources of systematic and clear
feedback
4. Involve several people in the evaluation
process

7-7
Employee Involvement Defined

 The degree to which


employees influence how their
work is organized and
carried out
 Different levels and forms of
involvement

7-8
Employee Involvement Model

Potential Involvement
Outcomes
 Better problem
Employee identification
Involvement  Synergy produces
more/better solutions
 Better at picking the
best choice
Contingencies
of Involvement  Higher decision
commitment

7-9
Contingencies of Involvement
Higher employee involvement is better when:

Decision • Problem is new & complex


Structure (i.e nonprogrammed decision)

Knowledge • Employees have relevant knowledge


Source beyond leader

Decision • Employees would lack commitment


Commitment unless involved

Risk of 1. Norms support firm’s goals


Conflict 2. Employee agreement likely

7-10
Creativity Defined

Developing an original idea that makes a


socially recognized contribution
• Applies to all aspects of the decision process –
problems, alternatives, solutions

7-11
Creative Process Model

Verification

Insight

Incubation

Preparation

7-12
Characteristics of Creative People

 Above average intelligence


 Persistence
 Relevant knowledge and experience
 Independent imagination traits
• Higher openness to experience personality
• Lower need for affiliation motivation
• Higher self-direction values

7-13
Creative Work Environments

 Learning orientation
• Encourage experimentation
• Tolerate mistakes

 Intrinsically motivating work


• Task significance, autonomy, feedback

 Open communication and sufficient resources


 Team competition and time pressure have
complex effect on creativity

7-14

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