Decision Making - Organizational Behaviour - Lecture Slides, Slides of Organization Behaviour

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Decision Making

• Approaches to decision making

• The decision making process

• Participation

• Vroom decision tree

Approaches to Decision Making

• Rational

• Bounded rationality: Limits on information

that can be processed

• Satisficing: Picking the first solution that’s “good

enough”

Criteria for Decision Making

• Quality of decision

• Timeliness

• Cost

• Stakeholders -- who has to be considered

• Certainty vs. risk

Programmed vs. Nonprogrammed

Decisions

• Programmed decision
  • One that is made regularly
  • Structures problems (clear problem, obvious

criteria)

• Pre-set rules, policies, procedures
• Efficiency
• Non-programmed decision
• One-time
• More “important” problem

Participation: Pro and Con

Pro

• It works…..
  • Better information
  • Decision acceptance (more motivation)
• Better for employees
  • Basic individual needs (self- actualization, autonomy, etc.)
  • Social needs (group decision- making)

Con

• It doesn’t work…..
  • Information may be centralized
  • Need for rapid response
• It’s not necessary
  • Assigned goals enough
• Employees may not be interested

Vroom Decision Tree

• Decision Criteria

• Decision Quality
• Commitment Requirement
• Leader’s Information
• Problem Structure
• Commitment Probability
• Goal Congruence
• Subordinate Conflict
• Subordinate Information

Sources of Ethical Beliefs

• Basic human values

• Reciprocity
• Altruism

• Institutional sources

• Religion
• Philosophy

• The environment

• Cultural experience
• Law

World Religions

Christianity Islam Hindu Chinese Folk Buddhist Judaism Other

Source:http://www.infoplease.com/

Catholic Protestant Orthodox Other

The World of Islam

On the day of judgment, the honest Muslim merchant will stand side by side with the martyrs

- The Prophet Mohammed

Moral Values in the Work Setting:

Islam

• Prohibition on charging interest
  • Lending fees
  • Leasing
  • Share of a bank’s profits rather than interest
• Investment (Syariah principles)
  • operations based on riba (interest) such as banking or finance companies
  • Gambling
  • Manufacture and/or sale of haram (forbidden) products such as liquor, non-halal meats and pork; and
  • Elements of gharar (uncertainty) such as conventional insurance

Socrates and Plato

• Socrates (470 BC – 399 BC)
  • Virtue is knowledge of what is good
  • Virtue has an existence of its own; we know what is good without being told
  • Virtue cannot be taught
  • If one knows what is good, one will act virtuously
• Plato (428 BC – 348 BC)
  • Platonic forms – Pure, eternal and unchanging ideas, that exist independently
  • Differs from Socrates, in that Plato believed that virtue could be taught

Aristotle (384 BC – 322 BC)

• Virtue is fulfilling a function
• Virtue comes from strength of character
• Virtue involves both feeling and action
• Virtue is innate, but also requires training and practice to form proper habits

Others

• Niccolò Machiavelli (1469 -1527)
• Herbert Spencer (1820 – 1903)
  • Social Darwinism
• Friedrich Nietzsche (1844 – 1900)
  • The great man can make his own rules

Niccolò Machiavelli

• The Prince
• Bad reputation today, but also a very pragmatic thinker
• What actually occurred versus what actually worked: …the gulf between how one should live and how one does live is so wide that a man who neglects what is actually done for what should be done learns the way to self-destruction rather than self-preservation (XV)
• The end -- stable rule -- justifies the means: …a prince, and especially a new prince cannot observe all those things which give men a reputation for virtue, because in order to maintain his state, he is often forced to act in defiance of good faith, of charity, of kindness, of religion (XVIII)