Bài giảng Organisational behaviour - Chapter 9 Decision making and employee involvement

Decision making and employee involvementChapter learning objectivesDiagram the general model of decision making.Explain why people have difficulty identifying problems and opportunities.Identify three factors that challenge our ability to choose the best alternative.Outline the causes of escalation of commitment to a poor decision.Outline the forms and levels of employee involvement.Describe sociotechnical systems theory recommendations for more successful self-directed work teams.Identify the four contingencies in the Vroom–Jago model that determine the optimal level of employee involvement.Discuss the challenges that prevent employee involvement.2 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione3. Developalternatives1. Identifyproblem2. ChoosedecisionstyleDecision making model 4. Choosebest solution5. Implementsolution6. Evaluatedecision3 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneFamous missed opportunitiesA Knight’s Tale was a box office success, yet most Hollywood studios rejected Brian Helgeland’s proposal. They failed to see the appeal of a film about a lowly squire in 14th century England who aspires to be a knight, set to 1970s rock music and reflecting contemporary themes of youth, freedom and equality.© Photofest4 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione© PhotofestProblem identification concernsPerceptual biasesperceptual defencepolitical influence by othersmental modelsPoor diagnostic skillsneed to make senselack of timedefining solutions as problems5 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione© PhotofestIdentifying problems effectivelyBe aware of perceptual limitationsDiscuss the situation with colleaguesCreate early warning signsUse information technology6 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneProblems with choosing solutionsGoal problemsambiguous, conflictingbiased by personal goalsInformation processing problemsselective attentionlimited information processingsequential evaluation with implicit favouriteMaximising problemstend to satisfice7 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneChoosing solutions effectivelySystematically evaluate alternativesDecision support systemsScenario planningIntuition (with caution)8 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneIntuitive decision makingAbility to know when a problem or opportunity exists and to select the best course of action without conscious reasoningConduit for tacit knowledgeLogical reasoning that became habit9 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneEscalation of commitment causesSelf-justificationGambler’s fallacyPerceptual blindersClosing costs10 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneEmployee involvement at Tien WahEvery three months, Tien Wah Press reveals its financial performance over the previous quarter to employees, so they can see how their costs affect the company’s performance and their bonus. This motivates staff to discover ways to reduce costs.Courtesy of Tien Wah Press11 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneEmployee involvement definedThe degree to which employees share information, knowledge, rewards and power throughout the organisationactive in decisions previously outside their controlpower to influence decisionsknowledge sharingCourtesy of Tien Wah Press12 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneForms of employee involvementInformalCasual information exchangesExample: Boss asks for ideasFormalCodified practicesExample: self-directed teams at ZIP IndustriesStatutoryRequired by lawExample: European codeterminationVoluntaryNo legal requirementExample: Building design task force at Great PlainsDirectEmployees personally involvedExample: Staff submit safety ideas at GPR Truck SalesRepresentativeReps decide for other employeesExample: Labour-mgt committees in NZ13 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneHighMediumLowLevels of employee involvementHigh involvement  employees have complete decision making power (eg SDWTs)Full consultation  employees offer recommendations (eg gain sharing)Selective consultation  employees give information, but don’t know the problem14 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneFeatures of self-directed teamsComplete entire work processTasks assigned by the team, not supervisorsHighly autonomous  responsible for inputs, processes, outputsResponsible for correcting problemsReceive team-level feedback and rewards15 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneSociotechnical systems at CelesticaCelestica adopted sociotechnical systems (STS) as its template for corporate renewal. The computer manufacturer assigned self-directed work teams to each work process and identified key variances that the teams control in those processes.Courtesy of Celestica Inc16 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneSociotechnical systems conditionsPrimary work unitSemi-autonomous groupsControl key variancesJoint optimisationCourtesy of Celestica Inc17 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneHow involvement improves decisionsEmployeeinvolvementLeads to better definition of problemsMore likely to select the best optionImproves number and quality of solutions18 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneDetermining optimal involvementDecision qualityDecision commitmentRisk of conflictDecision structure19 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOvercoming involvement challengesCultural differencesbetter in collectivist and low power distance culturesManagement resistanceeducate/train managers to become facilitatorsEmployee and union resistanceconcerns about increased stress, giving up union rights and union powersolution is trust and involvement20 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOverview of the next chapterThe creativity processCharacteristics of creative employeesWorkplace conditions that support creativity Problems facing teams when making decisionsFive structures for team decision making 21 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneDecision making and employee involvement