Process by which managers respond to opportunities and threats by analyzing options, and making determinations about specific organizational goals and courses of action
Programmed decision
Routine,virtuallyautomatic decision making that follows established rules or guidelines
Non-programmed decisions
Nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats
Intuition
Feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering, result in on-the-spot decisions
Reasoned judgment
Decisions that take time and effort, result from careful information gathering, generation of alternatives, and evaluation of alternatives
The Classical Model of Decision Making
Prescriptivemodel that assumes the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action
Optimumdecision: Most appropriate decision in light of what managers believe to be the most desirable consequences for the organization
The Administrative Model of Decision Making
Explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions
Bounded rationality, incomplete information
Causes of Incomplete Information
Risk
Uncertainty
Ambiguous information
Time constraints and information costs
Satisficing
Six Steps in Decision Making
1. Identify the problem or opportunity
2. Gatherrelevantinformation
3. Generatealternativecourses of action
4. Evaluatealternatives
5. Choose the bestalternative
6. Implement the decision and evaluate the results
General Criteria for Evaluating Possible Courses of Action
Effectiveness
Efficiency
Acceptability
Feasibility
Groupthink
Pattern of faulty and biased decision making that occurs in groups, where members strive for agreement among themselves at the expense of accurately assessing informationrelevant to a decision
Devil's advocacy
Criticalanalysis of a preferred alternative to ascertain its strengths and weaknesses before it is implemented
Promotingdiversity improves group decision making by bringing together managers of both genders from various ethnic, national, and functional backgrounds, which broadens the range of lifeexperiences and opinions
Team
A group of people who worktogether to achieve a common goal
Group
Two or morepersons who are interacting with oneanother in such a way that eachpersoninfluences and is influenced by eachother
Tuckman's Approach to Group Development
1. Forming
2. Storming
3. Norming
4. Performing
Forming stage
Groupgetstogether and familiarise themselves with eachother,findingout their strengths and weaknesses and deciding where they fit in within the group
Storming stage
Heightenedtension associated with roledifferentiation, competition for status, restructuring of the team and developingteamrules
Norming stage
Norms, rules and standards of behaviour begin to stabilise and co-operation takes over to form a unity.Group begins to work as a team to achieve common goals
Performing stage
Group able to work together effectively, little to no hostility with strong relationships built
Factors promoting team cohesion
Opennewfriendshipgroups
Integrateoutsiders
Issue sharedproblems
Breakdowncliques
Use of attribution
Promote team satisfaction in performance
Identifycommonteam goals
Reinforceteamsuccess
Factors affecting team cohesion
Communication
Difficulties with the coach/manager
Language difficulties
Payment of players
The introduction of newplayers
The influence of the media
Previousencounters at other clubs
The influence of the supporters
Athletes personal lives
Squadrotation
Interactive group
Group required to work together and ensureco-ordination to achieve their goal
Coactive group
Group that requires little co-ordinationbetween the team to achieve their goal
Some teams require both coactive and interactive groups within their team
Group performance decreases with the size of the group
Social loafing
When a member of the team is not putting in100%effort
How to decrease social loafing
Highlightindividual performances
Monitorindividual performances with feedback
Use positive reinforcement
Promotecohesion in the team
Setindividualgames
Give specific roles
Apply peer pressure within the group
Actual Productivity
The actual result or achievement of the group
Potential Productivity
The group's best possible performance depending on how individuals perform physically, mentally, technically and tactically
Faulty Processes
Things that go wrong, e.g. lack of coordination and motivational loss, that prevent the group from reaching their potential
Power
The ability to influenceanother person
Influence
The process of affecting the thoughts, behavior, & feelings of another person
Authority
The right to influenceanother person
Types of Position Power
Legitimate
Reward
Coercive
Types of Individual Power
Information
Expert
Referent
Expert power is the most effectivetype of power
Information Power
Access to and control over importantinformation
Ways to use power effectively
Usepower in ethical ways
Understand and use all types of power and influence
Seekoutjobs that allow you to develop your power skills
Usepowertempered by maturity and self-control
Acceptthatinfluencing people is an important part of the management job