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Decision Making and Change & Organizational Culture - Coggle Diagram
Decision Making and Change & Organizational Culture
Decision making
The process of choosing a course of action for dealing with a problem or opportunity.
Process
Define problem: not too broad or narrow
Analyze alternatives: determine exact information needed
Make a choice: consider time, cost, impact, and ethics
Take action; ensure that all affected parties have input
Evaluate results: have desired outcomes been attained
Moral dilemma
A situation where the decision maker faces two or more ethically uncomfortable alternatives.
Erhical double checks
Criteria: utility, rights, justice, caring
spotlight questions
Programmed decisions
Involve routine problems that arise regularly and can be addressed through standard responses.
Nonprogrammed decisions
Involve nonroutine problems that require solutions specifically tailored to the situation at hand.
What are the alternative decision-making models?
1.
classical theory
Classical decision theory assumes a manager:
= Acts rationally and in a fully informed manner.
= Faces a clearly defined problem.
= Knows all possible action alternatives and their consequences.
= Chooses the optimum solution.
2.
Behavior decision theory
Suggests that people act only in terms of their perceptions, which are frequently imperfect.
3.
The garbage can model
The main components of the choice process - problems, solutions, participants, and choice situations – are all mixed together in the “garbage can” of the organization.
Teams engage in two cognitive processes:
-Systematic(Problem approach utilizing a rational, analytic thinking)
Intuitive(A key element of decision making under risky and uncertainty conditions)
What are key decision-making traps and issues?
Judgmental heuristics
Simplifying strategies or shortcuts used to make decisions.
Make it easier to deal with uncertainty and limited information.
Availability heuristic
Involves assessing a current event based on past occurrences that are easily available in one’s memory.
Representativeness heuristic
Involves assessing the likelihood that an event will occur based on its similarity to one’s stereotypes of similar occurrences
Anchoring and adjustment heuristic
Bases a decision on incremental adjustments to an initial value determined
Consultative decisions
The manager or team leader solicits input from other people and then, based on this information and its interpretation, makes a final choice.
Team decisions
Manager or team leader consults with others and allows them to help make the final choice.
Organizational Culture
A system of shared values, assumptions, beliefs, and norms that unite the members of an organization.
Skills for managing organizational culture and change:
Cultural diagnostic skills
Cultural strategic skills
Managing culture skills
Change management skills
Levels of Corporate Culture
Core Values
Expressed Values
Visible Culture
Functions performed by organizational culture:
Employee Self-Management
:check: Sense of shared identity
:check: Generation of commitment
Stability
:check: Sense of continuity
:check: Satisfies the need for predictability, security, and comfort
Socialization
:check: Internalizing or taking organizational values
Implementation Support of the Organization’s Strategy
:check: If strategy and culture reinforce each other, employees find it natural to be committed to the strategy
Stages of the Socialization Process
pre-arrival
encounter
metamorphosis
creating and sustaining organizational culture
culture symbols
company rituals and ceremonies
company heroes
stories
language
leadership
organizational policies and decision making
resistance to change
self-interest
lack of tryst and understanding
uncertainty
cultures that value tradition
different perspectives and goals
implementing organizational change
bottom-up change
change agents
top-down change