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When the dimensions of value orientation and tolerance for ambiguity are combined, four decision-making styles emerge:
Low tolerance for ambiguity and oriented toward task and technical concerns Efficient, logical, practical, and systematic in approach to solving problems Tend to be autocratic, exercise power and control, and focus on the short-term
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Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 6
Higher tolerance for ambiguity and is characterized by the tendency to overanalyze a situation Careful decision makers who take longer to make decisions; also respond well to new situations
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 7
High tolerance for ambiguity and tends to focus on the people or social aspects of a work situation Adopts a long-term perspective and relies on intuitions and discussions with others to acquire information Can result in an indecisive approach to decision making
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 8
The most people oriented Works well with others, enjoys social interactions in which opinions are openly exchanged; has tendency to avoid conflict, but can be indecisive and have a hard time saying no
Can lead to a wishy-washy approach to decision making
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 9
Rational Decisions
Rational Model of Decision Making also called the classical model explains how managers should make decisions; it assumes managers will make logical decisions that will be optimum in furthering the organizations best interests.
McGraw-Hill/Irwin
The Rational Model is based on unrealistic assumptions: Complete information, no uncertainty, Logical, unemotional analysis, Best decision for the organization.
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 13
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 15
Stage 1
Stage 1 Identify the problem or opportunity
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 17
7.2 Two Kinds Of Decision Making: Rational & Nonrational Stage 2: Think up alternative solutions
Once managers have identified problems or opportunities and diagnosed causes, they need to come up with alternative solutions Solutions for programmed decisions are simple and obvious, but nonprogrammed decisions will be more challenging
Stage 2
Stage 2 Think up alternative solutions
For a nonprogrammed decision the more creative and innovative the alternative, the better
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 19
7.2 Two Kinds Of Decision Making: Rational & Nonrational Stage 3: Evaluate alternatives & select a solution
Each alternative must be evaluated to determine whether it is ethical, feasible, and effective
Stage 3
Stage 3 Evaluate alternatives & select a solution
Is solution ethical?
Is solution feasible?
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 21
Stage 4
Successful Implementation you need to: Plan Carefully Be Sensitive to those affected
Evaluation you need to follow up and evaluate the results of the decision and take action
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 23
Stage 4, cont.
Stage 4 Implement & evaluate the solution chosen
Evaluation Taking Action 1) Give it more time 2) Change it slightly 3) Try another alternative 4) Start over
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 24
Different priorities
Conflicting goals
McGraw-Hill/Irwin
Kinicki/Williams, Management: A Practical Introduction 2006 The McGraw-Hill Companies, Inc. All rights reserved. 3e 2008, McGraw-Hill/Irwin 26