Fundamentals of organizational behavior 2e by dubrin ch04

Chapter
4

Individual Decision Making
and Creativity

Fundamentals of
Organizational Behavior 2e
Andrew J. DuBrin

PowerPoint Presentation
by Charlie Cook


Learning Objectives
1. Work through the classical/behavioral decisionmaking model when faced with a major decision.
2. Identify and describe factors that influence the
effectiveness of decision making.
3. Understand the nature of creative decision making
in organizations.
4. Enhance your creative problem-solving ability.

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Types of Decisions
Decision
 What takes place when a person chooses among two or

more alternative responses or courses of action.

Programmed Decisions
 Programmed (routine) decisions

use standardized response
alternatives to recurring problems.

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Types of Decisions (cont’d)
Nonprogrammed Decisions
 Nonroutine decisions involving

creative thinking to develop
unique responses to
nonrecurring problems for
which alternatives are not
known in advance.
 Higher level managers typically
are involved in nonprogrammed
decision making; lower level
managers face more
programmed decisions.
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Degree of Risk and Uncertainty
Associated with Decisions
Certainty
Certainty

Risk
Risk

Uncertainty
Uncertainty

Facts
Factsare
arewell
wellknown.
known.
Alternatives
Alternativesare
areknown
known
and
andoutcomes
outcomescan
canbe
be
predicted
accurately.
predicted accurately.

Facts
Factsare
areknown.
known.
Alternatives
Alternativesare
areless
less
clearly
clearlydefined.
defined.

Facts
Factsare
areunknown.
unknown.
Few
Fewalternatives
alternativesare
are
known.
known.

The
The probability
probabilityof
of
outcomes
outcomesisispredicted

predicted
from
fromexperience.
experience.

The
Theprobability
probabilityof
of
outcomes
outcomescannot
cannotbe
be
predicted
predictedaccurately.
accurately.

Usually
Usuallyinvolves
involveslowerlowerlevel
levelissues
issues

Low
Low

Degree
Degreeof
ofRisk
Riskand

andUncertainty
Uncertainty

A. J. DuBrin, Fundamentals of Organizational

High
High

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Decision-Making Models
Classical decision model
 The environment is certain and stable.
 Managers are rational decision-makers.

Behavioral decision model
 There is environmental uncertainty

and instability.
 Managers have cognitive limitations
and make decisions based on their perceptions of a
situation

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A Classical/Behavioral Decision-Making

Model
 Managers make decisions within a generally

rational framework though they may rely on
personal intuition and judgment at various
points in the decision process.

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The Decision-Making Process
Identify and diagnose
the problem

Establish decision
criteria

Develop creative
alternatives

Evaluate the alternatives

Choose one alternative

“Back to the
drawing board.”

EXHIBIT

4-1

Repeat process
if necessary

“What really is our problem?”

“What are we trying
to accomplish?”

“Let’s dream up some great ideas.”

“Some of these ideas are
good, some are wacko.”

“This alternative is a winner!”

Implement the decision

“Now let’s take action.”

Evaluate and control

“How really good was that idea?”

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Bounded Rationality and Influences
on Decision Making
Bounded rationality (Herbert Simon)
 The rationality of decisions is limited by:

The extent of the decision maker’s metal abilities.
 External influences over which the decision maker has
little or no control.


 Satisficing decisions:

Are reached when the first sufficient alternative that is
adequate, acceptable, or passable is chosen.
 Result from bounded rationality.


 Heuristics


Simplified strategies to deal with masses of information.

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Influences on Decision Making Contributing
to Bounded Rationality
“I’m great at hunches.”

“Let’s wait before deciding.”

“I’ve got integrity.”

“Our backs are to the
wall, and we disagree.”

Procrastination

Values

Crisis and
Conflict

Intuition

Bounded Rationality
of Decision Maker

Political
Considerations

Personality
and
Cognitive
Intelligence
Emotional
Intelligence

“I like risks and I’m really bright.”

“I can read people great
and control my emotions.”

Quality and
Accessibility of
“The IS group is feeding
Information
me great stuff.”

“What does my boss
want me to decide?”

EXHIBIT
4-2

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The Nature of Creativity
Creativity:
 Is the process of developing good ideas

that can be put into action.
 Is essential to dealing with nonprogrammed decisions.

Approaches to understanding
creativity:

 Steps in the creative process
 Characteristics of creative people
 Conditions necessary for creativity

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Steps in the Creative Process

“I see something of
potential value here.”

Step 1
Opportunity or Problem
Recognition

“Time to raise some money
and get a few early customers.”

“Time for a warm bath
and a long sleep.

Step 2
Immersion

Step 3
Incubation

“I’m going to gather all
l can find on this subject.”

Step 4
Insight

Step 5
Verification

“Wow, I’ll sell moon
rocks over the Net.”

EXHIBIT
4-3

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Characteristics of Creative People
Knowledge
 Have acquired a broad background of facts and
information needed to support creative problem
solving when combining ideas and things in new
and different ways.

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Characteristics of Creative People
(cont’d)
Intellectual Abilities
 Are bright but not brilliant;
possessing creative intelligence.
 Are good at generating and
choosing alternatives (thinking
divergently/convergently).
 Are youthfully curious and
empathetic to others.
 Creatively use both fluid and
crystallized intelligence.

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Characteristics of Creative People
(cont’d)
Personality

 Have a positive self-image; not blindly self-confident.
 Able to cope with criticism of their ideas.
 Can tolerate the isolation necessary for developing ideas.
 Are frequently nonconformists and

do not need strong approval from

the group.
 Are persistent in carrying through
on an idea.
 Can deal with ambiguity and chaos.

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Conditions Necessary for Creativity
Internal factors affecting creativity:
 Expertise


The necessary knowledge to put facts together.

 Creative-thinking skills


The flexibility and imagination with
which individuals approach problems.

 Motivation

A fascination with or passion for the the task is important
for maximizing creativity.
 The experience of flow


– Total absorption and intense concentration (being “in the zone”)
make the task worth doing regardless of the consequences.

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Conditions Necessary for Creativity
(cont’d)
External factors affecting creativity:
External factors affecting creativity:

 An environmental need that stimulates goal setting


“Necessity is the mother of invention.”

 Conflict and tension that put people on edge


Creating situations that require flexibility and imagination
in the way in which individuals approach problems.

 Encouragement


Establishing a permissive
non-punitive environment
that welcomes new ideas

and original thinking.

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Enhancing and Improving Creativity
Creative problem solving requires:
 Overcoming traditional

ways of thinking by breaking
down the rigid thinking that
blocks new ideas
 Encouraging creative persons
to “think outside the box.”

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Techniques for Enhancing Creativity
Brainstorming:
 Use groups of five to seven people.
 Encourage spontaneous expression of ideas.
 Gather the largest quantity and variety of of ideas to

increase the likelihood of a breakthrough.
 Encourage combination and improvement of ideas.

 Keep a record of ideas by
writing them down.
 Do not overstructure the
session by following the
rules to rigidly.
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Techniques for Enhancing Creativity
(cont’d)
Idea quotas

 Demand that employees

come up with new ideas
on a regular basis.

Heterogeneous group
 Form professionally and

culturally diverse groups
to bring various
viewpoints to problems at
hand and to develop
creative ideas.

Financial incentives
 Offer monetary rewards for

suggestions and
implemented ideas.

Architecture and
physical layout
 Remove structural barriers

to communication and
interaction to foster
creative thinking.

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