Decision Making and Employee Involvement
Download
Report
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
2
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
3
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
5
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
6
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
7
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
8
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
9
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
10
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
11
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
12
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
13
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
14
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
15
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
16
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
17
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
18
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
19
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
20
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
21
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