Chapter 8 : Decision-Making Processes

Summary from Textbook:

Decision making is important in any organization, and may vary in their levels of effectiveness. It is a rational and logical process, and normally consists of several steps: formulation, concept development, detailing, evaluation and implementation.

Another way of solving problems is the comparison of the problem to other problems faced in the past by the superior, and based on those experiences; find a similar way of solving the problem. This kind of decision-making is called analogical.

Occasionally, by putting all of the problems, and likely solutions together, an optimal decision may arise through coincidence, but this method is used rarely, as it is seen as a last resort.

Often, decision-making processes can be carried out within small groups in the organization. Occasionally, one may see this happening through 4 simple processes: orientation phase where members get to know each other, conflict phase where possible solutions to the problem are presented, emergence phase where a general consensus is reached, and the reinforcement phase where the decision is finalized. Sometimes, a conclusion may be reached after the problem has been broken down into its root parts, and resolving them one at a time. As a result, it can be concluded that most decision making processes within a small group is rarely linear and rational.

One of the negative consequences of this group decision making process can be referred to as groupthink. This consequence results in several negative stereotyping of the group:

• Illusion of invulnerability- the belief that nothing can go wrong



• Illusion of morality- belief that virtues of the group is always right



• Stereotyping- thinking that others, outside their group, think that the views of the group is wrong



• Self-censorship- opinions differing from the majority opinion is silenced



• Illusion of unanimity- agreement with the group while keeping own thoughts hidden



• Direct pressure on dissidents- the force that makes members behave and think in similar ways



• Reliance on self-appointed guards- protection of group from external influences

To reduce consequences like this, Randy Hirokawa and Dennis Gouran proposed a theory called the functional theory of group decision making that followed several ways of thinking:

• The group should have a correct understanding of the issues to be resolved



• The group should determine the minimal characteristics required in order for any alternative to be acceptable



• The group should identify a relevant and realistic set of alternatives



• The group should carefully examine the alternatives in relation to each previously agreed-upon required characteristic



• The group should select the alternative that is most likely to have the desired characteristics
  
  

There are two theories that explain why participation in decision making processes should produce valuable organizational outcomes. A wide range of attitudinal, cognitive and behavioural effects of participation have been considered, and it was seen that there was significant effects on job satisfaction and performance.

The Affective Model is based on the work of human relation theorists, and this model proposed that participation in decision making is an organizational practice that would help satisfy employee’s self-esteem and self-actualization needs, thus resulting in job satisfaction.
The Cognitive Model is based on the human resources approach, and proposes that the participation will improve the quality of the flow of information, and individuals involved will be able to better implement the relevant decisions in the future, thus improving productivity.

Participation in decision making can be seen in organizations through several ways ranging from casual conversations to formal representative systems and employee ownership. These programs varied in terms of type of participation, content of decision making and locus of participation. This saw the enhancement of the effectiveness of the organization through employee input and influence.

A participative ideal for organizations is known as the workplace democracy that realizes the standards for a democratic society in the workplace.

There are several approaches that consider the decision making process differently:

• Classical- seen as a rational and logical process



• Human relations- participation is seen as an avenue for satisfying workers’ higher-order needs



• Human resource- a venue for eliciting information and ensuring effective implementation of organizational decisions



• Systems- complex process involving multiple and varied stages



• Cultural- set of practices that reflects and constitutes organizational values and assumptions



• Critical- process in which management can exert control over employees

This chapter is important to me, as it highlights the importance of the process of decision making, within the organization as a group, or as individuals. It also tells us that everyone’s opinions should be respected, and no one should believe that their group is never wrong.

This chapter is important to me, as it highlights the importance of the process of decision making, within the organization as a group, or as individuals. It also tells us that everyone’s opinions should be respected, and no one should believe that their group is never wrong.

Reference:

Miller, K 2009, Organizational Communication: Approaches and Processes, 6^th edition, Belmont, CA, Wadsworth Publishing Company.