Transcript Decision Making and Employee Involvement

C H A P T E R
9
Decision
making and
employee
involvement
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
Chapter learning objectives
1.
2.
3.
4.
5.
6.
7.
8.
Diagram 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.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Decision making model
1. Identify
problem
6. Evaluate
decision
2. Choose
decision
style
5. Implement
solution
3. Develop
alternatives
4. Choose
best solution
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Famous missed opportunities
A 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.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
© Photofest
4
Problem identification concerns
 Perceptual biases
 perceptual defence
 political influence by others
 mental models
 Poor diagnostic skills
 need to make sense
 lack of time
 defining solutions as
problems
© Photofest
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Identifying problems effectively
 Be aware of perceptual
limitations
 Discuss the situation with
colleagues
 Create early warning signs
 Use information technology
© Photofest
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Problems with choosing solutions
 Goal problems
 ambiguous, conflicting
 biased by personal goals
 Information processing problems
 selective attention
 limited information processing
 sequential evaluation with implicit favourite
 Maximising problems
 tend to satisfice
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Choosing solutions effectively
 Systematically evaluate alternatives
 Decision support systems
 Scenario planning
 Intuition (with caution)
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Intuitive decision making
 Ability to know when a problem or opportunity
exists and to select the best course of action
without conscious reasoning
 Conduit for tacit knowledge
 Logical reasoning that became habit
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Escalation of commitment causes
 Self-justification
 Gambler’s fallacy
 Perceptual blinders
 Closing costs
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Employee involvement at Tien Wah
Every 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 Press
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Employee involvement defined
The degree to which employees
share information, knowledge,
rewards and power throughout
the organisation
 active in decisions previously
outside their control
 power to influence decisions
 knowledge sharing
Courtesy of Tien Wah Press
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Forms of employee involvement
Formal
Codified practices
Example: selfdirected teams at
ZIP Industries
Informal
Casual information
exchanges
Example: Boss asks
for ideas
Statutory
Required by law
Direct
Employees
personally involved
Example: European
codetermination
Example: Staff
submit safety ideas
at GPR Truck Sales
Voluntary
Representative
No legal
requirement
Reps decide for
other employees
Example: Building
design task force at
Great Plains
Example: Labourmgt committees in
NZ
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Levels of employee involvement
High
Medium
Low
 High 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 problem
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Features of self-directed teams
 Complete entire work process
 Tasks assigned by the team, not supervisors
 Highly autonomous  responsible for inputs,
processes, outputs
 Responsible for correcting problems
 Receive team-level feedback and rewards
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Sociotechnical systems at Celestica
Courtesy of Celestica Inc
Celestica adopted
sociotechnical systems (STS)
as its template for corporate
renewal. The computer
manufacturer assigned selfdirected work teams to each
work process and identified
key variances that the teams
control in those processes.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Sociotechnical systems conditions
 Primary work unit
 Semi-autonomous groups
 Control key variances
 Joint optimisation
Courtesy of Celestica Inc
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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How involvement improves decisions
Leads to better
definition of problems
Employee
involvement
Improves number and
quality of solutions
More likely to select
the best option
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Determining optimal involvement
 Decision quality
 Decision commitment
 Risk of conflict
 Decision structure
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Overcoming involvement challenges
 Cultural differences
 better in collectivist and low power distance cultures
 Management resistance
 educate/train managers to become facilitators
 Employee and union resistance
 concerns about increased stress, giving up union
rights and union power
 solution is trust and involvement
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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Overview of the next chapter
 The creativity process
 Characteristics of creative employees
 Workplace conditions that support creativity
 Problems facing teams when making decisions
 Five structures for team decision making
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
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C H A P T E R
9
Decision
making and
employee
involvement
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione