VII.timing the decision
Learning objective 4
Explain timing and participation as they relate to the decision-making process.(Text pages 91-93)
A.It may not be easy to recognize that a
decision is necessary.
1.Quick decisions may lead to bad
decisions.
2.Some managers listen to problems, promising to act, but never do.
3.Other managers respond only after a lengthy delay.
B.Different decisions have different time frames; some need immediate results. / PowerPoint 4-12
Timing the Decision
(Refers to text page 91)
VIII.participation in decision making
A.Managers must decide whether to involve subordinates in decision making.
B.Group or Team Decision Making
1.Group performance is often better than average individual performance.
a.Groups often develop innovative and creative solutions to problems.
b.But groups often take longer to solve problems.
2.Group performance is superior
because:
a.The sum total of the group’s knowledge is greater.
b.The group has a much wider range of decision alternatives.
3.However, unanimous group decisions are consistently riskier than individual decisions.
a.People feel less responsible for the outcome of a group decision.
b.Groups make decisions that are more polar, or more extreme, than individuals acting alone.
Progress Check Questions(Text page 92)
  1. List the different conditions under which managers make decisions.
  2. Explain the difference between the maximax and maximin approaches to decision making.
  3. What is the risk-averting approach to decision making?
  4. Summarize the positive and negative aspects of group decision making.
/ TEXT Figure 4.5
Positive and Negative
Aspects of Group (Team) Decision Making (Text page 92)
PowerPoint 4-13
Participation in Decision Making
(Refers to text pages 91-92)
lecture link 4-2
When Employees Make the Decisions
How one employee-owned firm uses participative management. See complete lecture link on page 3.31 of this manual.
ix.barriers to effective decision making
A.Four Barriers to Decision Making:
1.Complacency, not seeing danger
signals or ignoring data
2.Defensive avoidance, denying the importance of danger or the opportunity
3.Panic, which rarely produces good
results
4.Deciding to decide, accepting the
responsibility and challenge of decision making
B.Recognizing these barriers is an important management skill. / PowerPoint 4-14
Barriers to Effective Decision Making
(Refers to text pages 92-93)
CASE INCIDENT 4.1
Getting Out of the Army(Text page 94)
Jay Abbott has just completed ten years of service with the Army and is contemplating his next move. His next promotion to general staff college would come with a pay raise. This could prompt him to stay in the Army for ten more years, to age forty-two, at which point he could retire and receive half his pay and free medical and dental benefits. However, Jay also knows that his current skills and age would bring an immediate higher wage in the corporate world, should he decide to leave the military. This is especially true now that Congress is reducing military raises and possibly reducing benefits. Jay has to consider his options and make a decision that will set his course for the next several years.
1.What factors are prompting Jay to consider leaving the army?
Jay has valuable skills and experience from his military career. This has value in the civilian market. If Jay decides to leave the military, he is confident he could find a position making $10,000 to $15,000 more in pay. The advantages of civilian work are certainly attractive and could be worth pursuing, considering his age.
2.What factors are encouraging him to stay?
With ten more years of duty, Jay could retire at half his salary, including medical and dental coverage. At age forty-two he could consider a second career. Whatever decision Jay makes, there will be a tradeoff.
3.Which factors do you think are more important? Why?
The pay and benefits immediately in front of him have to be considered. These will certainly have a large influence on his decision. However, Jay must also look at lifestyle, his family, and the possible location of where he will live, as each of these will also affect his decision. There may be particular requirements regarding the type of position he will hold or the level of responsibilities that will accompany each respective job.
4.What would you advise Jay to do?
Based on his age and the time left till he finishes his military career, Jay should probably take his next promotion with all the benefits the military will offer. Jay can benefit from extending his military career by ten years and can expect a great retirement package at age 42. Extending his military service could lead to a nice teaching career or upper level management position. His knowledge and maturity would benefit many companies. Jay has an opportunity to complete one set of goals for himself, then begin a whole new career that offers new and exciting challenges. This path would let him achieve a new set of goals that would not be possible from his current limited military career.
One way to get the class to look at this decision is to ask each student how he or she reacts to the known and the unknown. Some students will recommend that Jay keep his current career in the military (the known) while others will suggest he leave it for the civilian opportunities (the unknown). As students make their suggestions about the case, also explore why choosing the known vs. the unknown attracts each student and what these decisions can lead to, especially after they’ve considered the career implications.