Decisions at Google are made through consensus. Even the top team leads by consensus rather than through the orders of a manager or the CEO. Show
The open-office layout helps facilitate teamwork and coworker bonding, with few employee being given overt perks like private offices. This creates a flat hierarchy that allows everyone to work together at his or her best.
Google encourages its engineers to spend 20 percent of their time on personal projects or new ideas. 6.2 Understanding Decision Making
A programmed decision occurs with enough frequency that the organization has developed an automated response to it; i.e., Nancy orders office supplies when they get low.
The automated response to a programmed decision is called the decision rule. This rule suggests that every time this decision comes up, the same response should be given. That means that Nancy always orders the same office supplies when they get low.
Nonprogrammed decisions are unique, important, and involve critical thinking, research, and consideration of the options. The CEO has not dealt with this crisis before, and is making unique, critical, and important decisions.
Tactical decisions are related to how things are accomplished within the organization. Managers are typically responsible for making tactical decisions, and hiring new employees falls under the tactical decision-making umbrella.
Operational decisions are decisions made by employees every day. Managers make tactical decisions, while CEOs, CFOs, and boards of directors make strategic decisions.
Strategic decisions set the course of an entire company, and can include mergers, downsizing, new product lines, and the purchase of another company. 6.3 Self-Assessment 13: Decisions
I scored a 67 on the decision making self-assessment. My score of 67 means that I have an excellent approach to decision-making. I learned that I am good at knowing how to set up the process and generate lots of potential solutions, analyzing the options carefully, and making the best decision based on my knowledge of the situation. 6.4 Making Rational Decisions
The rational decision-making model is a series of steps that is designed to ensure that the decision maker is choosing the best possible decision.
According to the text, this is step two (establishing decision criteria) of the rational decision-making model. The next step would be to rank the factors you chose in order of importance.
The first step is to identify the problem, followed by establishing decision criteria, weighing decision criteria, generating alternatives, evaluating alternatives, choosing the best alternative, implementing the decision, and finally evaluating the decision.
Research suggests that generating alternatives (step four) can be the most challenging part of the process, and it often leads to failure.
Analysis paralysis refers to spending so much time thinking about the decision and all the alternatives that no decision is ever made. .5 Making “Good Enough” and Intuitive Decisions
Since we can only process so much information, the bounded rationality model allows the decision maker to knowingly limit the available options to a manageable set and then choose the best alternative from that set.
Satisficing is a part of the bounded rationality model and entails choosing the first alternative that meets your minimum criteria.
According to the intuitive decision-making model, experts use environmental clues, experience, knowledge, and training to make intuitive decisions in the field, evaluating only one option at a time. 6.6 Making Creative Decisions
In the incubation stage, the problem is set aside for a period as the brain unconsciously works on the problem.
Fluency is the sheer number of ideas that one person is able to generate. Fluency is one of the three factors (along with flexibility and originality) that aid creativity.
The creative decision-making process involves examining the options, and then consciously setting the problem aside so that the unconscious mind can reach a conclusion.
Brainstorming and wildstorming are tried-and-true techniques for enhancing creativity.
You are using the rational decision-making model, which uses eight steps to arrive at the optimal decision but depends on the size of the list of alternatives for its effectiveness. In this example, you only have two alternatives, so you are not likely to get bogged down in analysis paralysis.
The intuitive decision-making model involves an expert making a decision without conscious reasoning by examining one option at a time based on experience, training, and scans of the environment. The nurse’s quick (and ultimately successful) decision to treat the patient immediately is a good illustration of professional use of this model. 6.7 Self-Assessment 14: Creativity
I scored a 53 on the creativity self-assessment this means that my creativity level is a "work in progress." I learned that while I have had some successes, it is now time to let loose and stretch myself more. This assessment has taught me that I am not as creative as I could be. 6.8 Faulty Decision Making
The man is experiencing an escalation of commitment as he purchases yet another lottery ticket.
Overconfidence bias occurs when individuals are unduly confident about their ability to predict future events.
Hindsight bias occurs when mistakes seem obvious when looking back upon them.
Anchoring refers to the mistake of relying too heavily on a single piece of information.
Framing bias occurs when the decision maker is influenced by the situation, presentation, or wording of a problem. The ad neglects to mention that one out of five dentists does not recommend the brand, thus framing the situation in a way that will reflect positively on the product. 6.9 Decision Making in Groups
The decision-making process tends to be more efficient for an individual. Groups typically take longer to make decisions as there is discussion, debate, and potential conflict over the issue.
In addition to collective rationalization, which occurs when members of the group downplay negative information or warnings that might cause them to reconsider their assumptions, groupthink is characterized by the illusion of invulnerability, an unquestioned belief in the group’s inherent morality, stereotyped views of outgroups, direct pressure, self-censorship, illusions of unanimity, and the emergence of self-appointed mindguards.
Breaking the group up from time to time will allow the group to critically examine thought processes and group dynamics.
Nominal group technique (NGT) is meant to be used when groups are struggling with problem solving or idea generation. The four steps are silent composition of ideas, idea gathering and sharing, discussion and clarification, and members voting for their favorite ideas.
A project premortem would involve envisioning the future failure of the protect in order to identify any potential problems while there is still time to correct them.
Research has shown that GDSS can improve groups’ collaborative output through higher information sharing.
A decision tree is a diagram that leads individuals to address further questions until they find the end of the tree. These trees help avoid framing bias; they also help the decision maker to ensure consistency at all times. 6.11 Self-Assessment 15: Project Management
I scored a 48 on the project management skills self-assessment. This score means that my project management skills are OK, and when projects are relatively simple, my outcomes are often good. I agree with this score and it has taught me that I need to improve my project management skills. 6.12 The Role of Ethics and National Culture
Considering how you would feel if your decision were broadcast on the news is one of several ways to assess the ethics of a decision.
In Japan, decision-making is called “nemawashi” and it calls for consensus-building within the group. The manager will talk to all parties, explain the problem, answer questions, and seek the group members’ support. The decision-making process is thus slower than in other cultures, but once the decision is made, its implementation occurs very quickly due to the full support of everyone in the group. 6.13 Empowered Decision Making: The Case of Ingar Skaug
In the wake of plane crash that killed the entire top management team, Skaug diagnosed the problem with the company as a broken decision-making style. He immediately implemented a more empowered decision-making process and held strong for six months while everyone adjusted.
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