Managing a Business/ORGANISATION BEHAVIOUR
Q1 (A) What are the three levels of Analysis in our OB model? Are they related?
If so, how?
(B) What contingency factors can improve the statistical relationship between Attitudes and Behavior?
Q2 (A) If job satisfaction is not a behavior, why is it considered an important Dependent Variable?
(B) What are effectiveness and efficiency, and how are they related to organizational behavior?
Q3 (A) What, if anything, can managers do to manage emotions?
(B) What is the rational decision-making model? Under what conditions is it applicable?
Q4 (A) Contrast distributive and procedural justice. What implications might they have for designing pay systems in different countries?
(B) Can an individual be too motivated, so that his or her performance declines as a result of excessive effort ? Discuss.?
Q5 (A) Contrast job based and skill based pay.
(B) What can you do, as a manager, to increase the likelihood that your employees will exert a high level of effort?
Q6 (A) Identify five roles you play in your organization. What behaviors do they require? Are any of these Roles in conflict? If so, in what way? How do you resolve these conflicts?
(B) What effect, if any, do you expect that workforce diversity has on a group’s performance and satisfaction?
(C ) When do groups make better decisions than individuals?
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What are the three levels of Analysis in our OB model? Are they related? If so, how?
Levels of analysis
There are generally 3 (three) levels of analysis in Organizational Behavior. Such as :
1) Individual Process
2) Team Process
3) Organizational Process
THEY ARE RELATED AND INTEGRATED TO PRODUCE BEHAVIOR
WHICH IS AFFECTIVE AND RESULT ORIENTED.
As managers, we are interested in productivity. Therefore, we are interested in
knowing how to improve the productivity of our employees. This productivity is a
human behavior and, as such, is influenced by a number of factors.
First, productivity is a function of each of the employees' unique personalities.
Second,employees' behaviors are influenced by the environments in which they find
themselves. For example, an employee's behavior (and productivity) will be influenced
by a dirty, hot, noisy, or dangerous worksite.
Finally, an employee's behavior will be a
function of that employee's innate drives or felt needs and the opportunities he or she
has to satisfy those drives or needs in the workplace.
Employees' performance is, of course, partially determined by the opportunities given
them to demonstrate their abilities. If employees are never given opportunities to
utilize all of their skills, then the employer may never have the benefit of their total
performance. Work performance is also contingent upon employee abilities. If
employees lack the learned skills or innate talents to do a particular job, then
performance will be less than optimal. A third dimension of performance is motivation.
A generalized model of motivation posits a set of innate drives and felt needs for each
employee. The employee brings these drives and needs to the workplace and they
influence the employee's workplace behavior and productivity. These drive and needs
create a tension within the employee if left unsatisfied. This tension may be both
physical (manifested through the symptoms of stress) and psychological. The employee
thus engages in whatever behaviors are necessary to reduce this tension. If the
behavior undertaken is appropriate, it may be assumed that the tension is reduced and
that tension-reducing behaviors are ceased.
What contingency factors can improve the statistical relationship between Attitudes and Behavior?
Effects of Job Attitudes on Work Behavior
- job satisfaction
- job satisfaction
- affective commitment
- job satisfaction
- all types of commitment
- predicts intentions > actual turnover
4.Job performance (in-role)
- job satisfaction
- affective commitment
5.Contextual job performance (OCBs)
- job satisfaction
- job satisfaction
If job satisfaction is not a behavior, why is it considered an important Dependent Variable?
MANAGING JOB SATISFACTION.
Increasing job satisfaction is important for its humanitarian value and for its financial benefit .
JOB SATISFACTION IS A MOTIVATING FACTOR , due to its effect on employee behavior.
Various Researches have included measures of job satisfaction in all our employee surveys. Clear patterns have emerged.
Employees with higher job satisfaction:
1 believe that the organization will be satisfying in the long run
2 care about the quality of their work
3 are more committed to the organization
4 have higher retention rates, and
5 are more productive.
DEFINE YOUR TERMS
Vague terms like "morale" often include elements of satisfaction, commitment, desire to quit, communication, etc. A major business magazine quoted a CEO who consistently confused job satisfaction with complacency. A lack of conceptual clarity makes it difficult to learn anything useful or precise.
A single construct or multiple dimensions.
One area of disagreement is whether job satisfaction has multiple dimensions. Researchers like Porter and Lawler¹ define job satisfaction as a unidimensional construct; that is, you are generally satisfied or dissatisfied with your job. In contrast, Smith, Kendall, and Hulin² argue that job satisfaction is multidimensional; that is, you may be more or less satisfied with your job, your supervisor, your pay, your workplace, etc.
For the purposes of our work, we follow Porter & Lawler and define job satisfaction as people's affective (emotional) response to their current job conditions. We also carefully distinguish job satisfaction from its consequents. Desire to stay with an organization is not a symptom of job satisfaction, it is a consequence of job satisfaction. As an independent factor, desire to stay is also affected by other factors such as employees' job security, expectations about their future success in the organization, etc.
SOURCES OF CONFUSION
Negative is stronger than positive. Dissatisfaction seems to be more motivating than satisfaction. In a similar way, people often react more immediately and visibly to pain than to a pleasant stimulus.
Diminishing returns. Frequently, there is not a simple relationship between satisfaction and its consequents. For example: the greater the dissatisfaction, the greater the motivation to quit. Once people are basically satisfied, they are no longer motivated to quit. How will their behavior be different if they are wildly satisfied with their jobs? They will still not be motivated to quit. Thus, once employees are satisfied with their jobs, being wildly satisfied may not produce significantly different behavior. This effect can cause managers to under-estimate just how motivating job satisfaction really is.
SIGNIFICANT FACTORS THAT AFFECT JOB SATISFACTION
six factors that influenced job satisfaction. When these six factors were high, job satisfaction was high. When the six factors were low, job satisfaction was low. These factors are similar to what we have found in other organizations.
Employees are more satisfied when they have challenging opportunities at work. This includes chances to participate in interesting projects, jobs with a satisfying degree of challenge and opportunities for increased responsibility. Important: this is not simply "promotional opportunity." As organizations have become flatter, promotions can be rare. People have found challenge through projects, team leadership, special assignments-as well as promotions.
1 Promote from within when possible.
2 Reward promising employees with roles on interesting projects.
3 Divide jobs into levels of increasing leadership and responsibility.
It may be possible to create job titles that demonstrate increasing levels of expertise which are not limited by availability of positions. They simply demonstrate achievement.
When negative stress is continuously high, job satisfaction is low. Jobs are more stressful if they interfere with employees' personal lives or are a continuing source of worry or concern.
1 Promote a balance of work and personal lives. Make sure that senior managers model this behavior.
2 Distribute work evenly (fairly) within workteams.
3 Review work procedures to remove unnecessary "red tape" or bureaucracy.
4 Manage the number of interruptions employees have to endure while trying to do their jobs.
5 Some organizations utilize exercise or "fun" breaks at work.
Employees are more satisfied when their managers are good leaders. This includes motivating employees to do a good job, striving for excellence or just taking action.
1 Make sure your managers are well trained. Leadership combines attitudes and behavior. It can be learned.
2 People respond to managers that they can trust and who inspire them to achieve meaningful goals.
Employees are more satisfied when their entire workgroup takes pride in the quality of its work.
1 Encourage communication between employees and customers. Quality gains importance when employees see its impact on customers.
2 Develop meaningful measures of quality. Celebrate achievements in quality.
be cautious of slick, "packaged" campaigns that are perceived as superficial and patronizing.
Employees are more satisfied when they feel they are rewarded fairly for the work they do. Consider employee responsibilities, the effort they have put forth, the work they have done well and the demands of their jobs.
1 Make sure rewards are for genuine contributions to the organization.
2 Be consistent in your reward policies.
3 If your wages are competitive, make sure employees know this.
4 Rewards can include a variety of benefits and perks other than money.
As an added benefit, employees who are rewarded fairly, experience less stress.
Employees are more satisfied when they have adequate freedom and authority to do their jobs.
1 Let employees make decisions.
2 Allow employees to have input on decisions that will affect them.
3 Establish work goals but let employees determine how they will achieve those goals. Later reviews may identify innovative "best practices."
4 Ask, "If there were just one or two decisions that you could make, which ones would make the biggest difference in your job?"
POINTS TO NOTE.
One thing that makes humans unique is our ability to focus energy. Whether to heat a home or to cut steel with a laser, focusing energy where it's needed produces significant results. As a manager, you need to know what is important and where it is a problem. Focusing time and resources on a specific problem is more likely to produce measurable benefits to the organization.
What are effectiveness and efficiency, and how are they related to organizational behavior?
The formula of total productivity is normally written as follows:
1 Total productivity = EFFECTIVENESS/ EFFICIENCY
Effectiveness is a measure of whether and to what extent set goals have been achieved ("doing the right things"). In project management effectiveness is a strategic criterion.
Meeting process objectives, delivering the required outputs and outcomes. Doing the right thing
Efficiency is a measure of time, cost and effort. Measures of an efficient information system include its productivity, processing time, operational costs and level of automations. Measures of an efficient information products include the speed of processing, the functionality of the solution, the ease of use of the solution and output, and the cost of information processing.
EFFICIENCY IS A MEASURE OF RESOURCES REQUIRED [ time/labor/material]
TO ACHIEVE A REQUIRED OUTCOME.
Organizational Behavior is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking a system approach. That is, it interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives.
As you can see from the definition above, organizational behavior encompasses a wide range of topics, such as human behavior, change, leadership, teams, etc.
Elements of Organizational Behavior
The organization's base rests on management's philosophy, values, vision and goals. This in turn drives the organizational culture which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life which directs their degree of motivation. The final outcome are performance, individual satisfaction, and personal growth and development. All these elements combine to build the model or framework that the organization operates from.
Models of Organizational Behavior
There are four major models or frameworks that organizations operate out of:
1.Autocratic - The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is minimal.
2.Custodial - The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance result is passive cooperation.
3.Supportive - The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and participation. The employee need that is met is status and recognition. The performance result is awakened drives.
4.Collegial - The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm.
Although there are four separate models, almost no organization operates exclusively in one. There will usually be a predominate one, with one or more areas over-lapping in the other models.
Social Systems, Culture, and Individualization
A social system is a complex set of human relationships interacting in many ways. Within an organization, the social system includes all the people in it and their relationships to each other and to the outside world. The behavior of one member can have an impact, either directly or indirectly, on the behavior of others. Also, the social system does not have boundaries...it exchanges goods, ideas, culture, etc. with the environment around it.
Culture is the conventional behavior of an organization that encompasses beliefs, customs, knowledge, and practices. It influences human behavior, even though it seldom enters into their conscious thought. People depend on culture as it gives them stability, security, understanding, and the ability to respond to a given situation. This is why people fear change. They fear the system will become unstable, their security will be lost, they will not understand the new process, and they will not know how to respond to the new situations.
Individualization is when employees successfully exert influence on the social system by challenging the culture.
THE ORGANIZATION PRODUCTIVITY IS INFLUENCED BY THE
ORGANIZATION EFFECTIVENESS/ EFFICIENCY.
How does a company go about improving ORGANIZATION
Effectiveness / Efficiency ?
BY WORKING ON THE ORGANIZATION BEHAVIOR ELEMENTS.
1) Identify the root causes of organization ineffectiveness/ Ineffiencies .
Ask: What are the primary contributing factors -- processes, structures, systems capabilities and/or culture?
2) Determine the leverage points for addressing the root causes. Ask: What are the impacts, benefits, pitfalls, and lasting changes that would result by eliminating these causes?
3) Formulate a plan and make it logical, realistic and actionable. Be specific and include key results, resources, timelines, and milestones.
4) Create buy-in and ownership of the plan.
5) Implement and measure, implement and manage, implement and reward.
BY WORKING ON THESE ELEMENTS, WHICH ARE THE BASICS
OF ORGANIZATION BEHAVIOR.
1.Teamwork/Cooperation (within and across units)
2 Openly shares information, knowledge and expertise with the team and co-workers;
3 Cooperates with other members to achieve the workgroup's goals;
4 Appropriately gives and is open to feedback from team/coworkers;
5 Puts accomplishing the interests of the organization/unit ahead of accomplishing individual goals;
6 Actively works to remove barriers to team effectiveness;
7 Utilizes team members' skills to accomplish goals.
2. Customer Orientation
1 Insists and/or provides on high quality service for internal and external customers;
2 Demonstrates customer focus by seeking out, understanding, and responding to the needs of both internal and external customers;
3 Responds to customers' needs, questions and concerns in an accurate, effective, and timely manner;
4 Develops effective partnerships with customers;
5 Effectively and professionally works with upset customers, solving their problems;
6 Continually seeks efficient ways of providing services by minimizing procedural requirements.
3. Commitment to Continuous Quality/Process Improvement
1 Identifies and implements new processes and initiatives that help the customer/department accomplish its goals;
2 Translates ideas into specific tasks/actions to improve operations;
3 Actively seeks and suggests better ways of getting the job done, and learns from both successes and failures;
4 Creatively applies and actively shares expertise and best practices with other departments.
1 Injects originality into daily work through research, personal knowledge, and networking relationships;
2 Thinks "outside the box";
3 Brainstorms and encourages new ideas and solutions;
4 Takes appropriate risks.
5. Flexibility/Adaptability to Change
1 Displays flexibility and openness in daily work and encourages others to stay open to change, improvements, etc.;
2 Adapts own attitudes and behavior to work effectively with different people and situations;
3 Accepts and readily adapts to changing priorities, better ideas, strategies, procedures, and methods;
4 Maintains work effectiveness in new situations.
6. Continuous Learning/Development
1 Takes the initiative to learn new skills that would benefit the position and operational objectives;
2 Takes ownership of own professional development;
3 Learns from and seeks others' ideas and perspectives;
4 Acts as a mentor and/or encourages other employees to improve and develop individual skills;
5 Seeks feedback on performance;
6 Considers, evaluates, and incorporates others' suggestions about their own performance;
7 Continuously looks for new or nontraditional ideas to improve personal, team and operational effectiveness.
7. Displays Vision
1 Thinks and considers possible future change;
2 Helps provide a clear customer-focused sense of direction for the team and co-workers to support the department's vision;
3 Develops and/or explains strategic action plans for practical use;
4 Inspires and energizes others to commit to vision;
5 Develops and refines vision to reflect constant and accelerating change impacting the organization.
Making People Matter
1 Views him/herself as part of the team, not above it;
2 Is flexible and easy to approach;
3 Builds positive working relationships with all staff;
4 Provides recognition;
5 Develops staff;
6 Personally models the organization's values, behaviors, and work practices;
7 Has personal credibility and high integrity;
8 Utilizes internal organizational resources effectively;
9 Anticipates and plans for future developments;
10 Tackles difficult problems and decisions, when appropriate;
11 Handles pressure and stress appropriately.
9. Respect for Others
1 Treats all people with dignity;
2 Demonstrates compassion, consideration, and caring;
3 Believes/assumes the best in others;
4 Demonstrates care for health and safety of others;
5 Values contributions of others;
6 Works to build others' value with positive impact to all;
7 Speaks up on behalf of others when differences are not respected.
10. Interpersonal Skills
1 Attentive to and understands the views of others;
2 Demonstrates an awareness of own style and how it affects others, and makes adjustments as necessary;
3 Resolves interpersonal problems in the workplace;
4 Responds positively to constructive suggestions;
5 Displays objectivity in assessing situations;
6 Develops and maintains positive work relationships with others.
11. Supports Diversity and Understands Related Issues
1 Establishes and maintains effective working relationships with people from diverse backgrounds;
2 Realizes differences in people as opportunities to learn;
3 Contributes to an environment where differences are valued and encouraged.
1 Sets an example by consistently modeling high standards of performance, honesty, and integrity;
2 Is willing to change his/her mind when given new information;
3 Makes sure all ideas receive fair consideration.
13. Builds Trust
1 Actions support his/her words;
2 Maintains a reputation for honesty, candor, confidentiality, fairness and reliability;
3 Protects the interests of people who aren't present;
4 Judges substance, not image;
5 Offers status reports and keeps others appropriately informed;
6 Follows-up on commitments made in a timely, accurate and complete basis;
7 Makes position clear on difficult issues.
14. Recognizes Others' Achievements/Contributions
1 Promotes systems and processes that encourage and reward the development of people at all levels of the organization;
2 Says "Thank you" and "Great job" on a regular basis;
3 Recognizes and/or rewards others for their contributions and commitment in a manner that corresponds with the employee's values.
15. Understands Others' Perspectives
1 Puts his/herself in "another's position" and demonstrates compassion, consideration, and caring;
2 Understands all points of view with empathy.
16. Resolves Conflicts Constructively
1 Acknowledges personal responsibility in conflict situations;
2 Directly communicates with persons involved in disagreements;
3 Effectively manages conflict between organizational units with the appropriate individuals initially involved;
4 Identifies and constructively addresses disagreements which undermine performance;
5 Encourages people to bring difficult issues into the open;
6 Uses the strength of the facts, rather than the loudness of argument;
7 Resolves differences between people using persuasion, diplomacy and logic;
8 Keeps conflict resolution professional and not personal;
9 Manages conflict with others in ways that preserve good relations;
10 Offers open exploration of differing ideas and solutions within the team.
17. Positive Attitude
1 Creates a "can-do" climate;
2 Approaches others in a pleasant, happy and upbeat manner;
3 Maintains enthusiasm despite criticism of ideas;
4 Demonstrates support to unit/University mission;
5 Demonstrates an "I care" attitude.
1 Establishes priorities that address the details and timelines needed to achieve the intended results;
2 Focuses on end result;
3 Is flexible and utilizes resources;
4 Updates staff regularly and communicates plans to those involved;
5 Ensures projects are being completed according to plan and reevaluates if necessary.
19. Problem Solving/Judgement
1 Analyzes and solves problems by dealing with facts and not by blaming others;
2 Strikes a balance between being participative, i.e., involving team members in decisions and being directive, depending on the needs of the team and the situation;
3 Seeks involvement from diverse perspectives and areas of the department and /or University to solve problems;
4 Understands the organization and the affect decisions have on other parts of the organization;
5 Proactively anticipates and addresses concerns of employees, peers, upper management, and customers;
6 Formulates alternative/creative solutions to problems;
7 Resolves sensitive issues without making the situation worse;
8 Provides advice and/or information to individuals and teams in a timely manner;
9 Makes timely decisions with quality outcomes.
20. Makes Effective Decisions
1 Gathers information on an issue, impartially considering all sides and makes logical decisions that are clear;
2 Evaluates positive and negative alternatives within time and resource constraints;
3 Uses agreed upon criteria for decision-making rather than hidden agendas;
4 Delegates decision-making responsibility when appropriate;
5 Considers the total organization when making decisions;
6 Keeps the department's long-term goals in mind when addressing short-term issues and problems.
21. Takes Responsibility
1 Follows-through on commitments;
2 Only makes promises that can be kept;
3 Acts like a business owner, taking care of the needs of the unit;
4 Takes responsibility for actions, results, and mistakes;
5 Is willing to accept additional responsibility or authority.
22. Achieves Results
1 Gets the job done by doing whatever it takes, within an appropriate time frame;
2 Handles and delivers multiple projects simultaneously;
3 Implements plans and makes mid-course changes when necessary to achieve goals;
4 Sets daily, weekly, monthly, quarterly and annual project goals, creating specific plans to meet them;
5 Shows persistence in overcoming obstacles;
6 Ensures follow-through to desired results.
23. Communicates Effectively
1 Communicates in an open, candid and consistent manner;
2 Explains concepts and procedures clearly and completely while maintaining attention and interest;
3 Displays sensitivity to ethnic and gender issues in verbal and written communications;
4 Shows tact and diplomacy in dealing with others;
5 Keeps individuals well informed of key organizational issues and needs;
6 Keeps individuals informed about issues that may affect them;
7 Keeps others informed on the status of assigned work;
8 Delivers information effectively in a variety of settings including one-on-one, team setting, and presentations;
9 Delivers information effectively in a variety of formats including letters, memos, analytical reports, and decision documents.
1 Is available for work on a consistent and timely basis with infrequent unplanned absences;
2 Completes work in a timely manner;
3 Meet commitments with minimal oversight;
4 Meets commitments with others;
5 Conscientious, thorough, accurate, and reliable when performing and completing job tasks.
25. Job/Organizational Knowledge
1 Understands how to get things done in the organization;
2 Possesses knowledge and skills necessary to perform job;
3 Defines resources and actions to achieve objectives within constraints;
4 Builds effective networks and alliances inside and outside the University, which benefit the unit/University.
1 Focuses time and resources on activities that will yield the greatest benefit;
2 Gets work done within a given time frame;
3 Sets realistic personal goals and work plans that are consistent with the business needs and strategies of the unit;
4 Works effectively under pressure – balances multiple objectives;
5 Obtains information and utilizes resources effectively.
Additional Factors for Supervisors / Managers
27. Coaches/Counsels/Evaluates Staff
1 Employs a leadership style based on assessing the needs of individuals;
2 Addresses individual needs through coaching and teaching to improve learning and enhance performance;
3 Provides productive feedback to employees, co-workers and upper management in a timely, direct and supportive manner;
4 Coaches others on how to anticipate, define and solve problems;
5 Openly shares information and resources;
6 Evaluates performance regularly, accurately and fairly;
7 Monitors staff work and follows-up appropriately;
8 Deals with performance problems directly, fairly, and in a timely manner, providing current, complete and practical positive or corrective feedback.
28. Identifies Areas for and Supports Employee Development Opportunities
1 Provides information, tools, resources, and opportunities to help others improve their abilities;
2 Helps employees identify areas for development;
3 Supports appropriate employee development opportunities;
4 Gives people challenging assignments to develop their capabilities;
5 Promotes systems and processes that encourage and reward the development of people at all levels of the organization.
29. Encourages Teamwork and Group Achievement
1 Creates a high performance work environment where others pull together to complete tasks;
2 Encourages team members to discover the best ways to perform their jobs effectively;
3 Actively promotes functional as well as cross-functional teams;
4 Empowers teams to achieve goals by providing resources, training, responsibility and authority;
5 Holds teams accountable for performance;
6 Shares successes with team members;
7 Monitors and evaluates team success and difficulty, and provides productive feedback.
30. Leads Change/Achieves Support of Objectives
1 Helps employees quickly and effectively understand and adjust to new roles, challenges and changes in the University environment and in their jobs;
2 Stays up-to-date on key trends, and opportunities;
3 Initiates change instead of reacting to external pressures for change;
4 Makes sure technical/functional decisions are based on department priorities;
5 Uses available resources (people, funds, time, material, support) and coordinates/manages these components, including those outside the organization.
31. Enables and Empowers Staff
1 Provides information and resources so staff can function independently;
2 Enables staff to take appropriate risks;
3 Encourages and promotes decision making and accountability at all levels;
4 Organizes and structures work for others in a manner that encourages ownership and accountability.
32. Strives to Achieve Diverse Staff at all Levels
1 Creates an environment where differences are valued, encouraged and supported;
2 Actively supports individuals for key positions regardless of differences.
33. Understands Diversity Issues and Creates Supportive Environment for Diverse Employees
1 Actively supports the development of others regardless of differences;
2 Respects the talent and unique contributions of every individual, culture and ethnic group to increase effectiveness of the unit;
3 Influences the culture in ways that value and support diversity.
What, if anything, can managers do to manage emotions?
THE MANAGER COULD WORK ON THE FOLLOWING
TO MANAGE EMOTIONS OF THE INDIVIDUALS/TEAM.
• Emotional awareness
[make the individuals aware of their emotions/its impact]
• Accurate self-assessment
[provide tools for self assessment / action plan]
[help to create a picture of self confidence / with planned programs]
[provide training to show how one can control our activities]
[show how learning can help to be seen to be trustworthy]
[help them to be conscientious of their role / contributions]
[train them to adaptable to various situations ]
[give them opportunity/ reward to encourage innovations]
• Achievement drive
[show them how to use emotions to greater achievements]
[show how commitment helps to manage emotions]
[show why taking initiatives helps achievement ]
[show how being optimist helps to overcome emotions]
• Understanding others
[empathising with others helps to overcome nasty feelings]
• Developing others
[sharing knowledge / skills with others helps to overcome emotions]
• Service orientation
[showing caring / sharing for others, helps to balance emotions]
• Leveraging diversity
[using diversity as a strength in managing people]
[skillfully use ''influence'' in managing people]
• Conflict management
[use conflict management skills to sort out differences/controversies]
• Change catalyst
[be the catalyst in implementing changes in the organization ]
• Collaboration and cooperation
[set up systems / processes for managing work]
[build informal/ formal communication network ]
[show a strong sense of organization leadership ]
• Team capabilities
[conduct team building exercises]
What is the rational decision-making model? Under what conditions is it applicable?
Models of Decision Making
• The Rational Model
– Consists of a structured four-step sequence:
• identifying the problem
• generating alternative solutions
• selecting a solution
• implementing and evaluating the solution
Simon’s Normative Model
- Based on premise that decision making is not
- Decision making is characterized by
* limited information processing
* use of rules of thumb or shortcuts
Assets of Group Decision
• Groups can accumulate more knowledge and facts
• Groups have a broader perspective and consider more
• Individuals who participate in decisions are more satisfied
with the decision and are more likely to support it.
• Group decision making processes serve an important
communication function as well as a useful political
Liabilities of Group Decision
• Groups often work more slowly than individuals.
• Groups decisions involve considerable compromise that
may lead to less than optimal decisions.
• Groups are often dominated by one individual or a small
clique, thereby negating many of the virtues of group
• Overreliance on group decision making can inhibit
management’s ability to act quickly and decisively when
Individual vs. Group Decision
• In establishing objectives, groups are probably superior to
individuals because of the greater amount of knowledge
available to groups.
• In identifying alternatives, the individual efforts of group
members encourage a broad search in various functional
areas of the organization.
• In evaluating alternatives, the collective judgement of the
group, with its wider range of viewpoints, seems superior
to that of the individual decision maker.
THE COMPANY USING THE RATIONAL APPROACH.
Basic Guidelines Decision Making
1. Define the problem
This is often where people struggle. They react to what they think the problem is. Instead, seek to understand more about why you think there's a problem.
Defining the problem: (with input from yourself and others)
Ask yourself and others, the following questions:
a. What can you see that causes you to think there's a problem?
b. Where is it happening?
c. How is it happening?
d. When is it happening?
e. With whom is it happening? (HINT: Don't jump to "Who is causing the problem?" When we're stressed, blaming is often one of our first reactions. To be an effective manager, you need to address issues more than people.)
f. Why is it happening?
g. Write down a five-sentence description of the problem in terms of "The following should be happening, but isn't ..." or "The following is happening and should be: ..." As much as possible, be specific in your description, including what is happening, where, how, with whom and why. (It may be helpful at this point to use a variety of research methods. Also see http://www.managementhelp.org/research/research.htm
Defining complex problems:
a. If the problem still seems overwhelming, break it down by repeating steps a-f until you have descriptions of several related problems.
Verifying your understanding of the problems:
a. It helps a great deal to verify your problem analysis for conferring with a peer or someone else.
Prioritize the problems:
a. If you discover that you are looking at several related problems, then prioritize which ones you should address first.
b. Note the difference between "important" and "urgent" problems. Often, what we consider to be important problems to consider are really just urgent problems. Important problems deserve more attention. For example, if you're continually answering "urgent" phone calls, then you've probably got a more "important" problem and that's to design a system that screens and prioritizes your phone calls.
Understand your role in the problem:
a. Your role in the problem can greatly influence how you perceive the role of others. For example, if you're very stressed out, it'll probably look like others are, too, or, you may resort too quickly to blaming and reprimanding others. Or, you are feel very guilty about your role in the problem, you may ignore the accountabilities of others.
2. Look at potential causes for the problem
a. It's amazing how much you don't know about what you don't know. Therefore, in this phase, it's critical to get input from other people who notice the problem and who are effected by it.
b. It's often useful to collect input from other individuals one at a time (at least at first). Otherwise, people tend to be inhibited about offering their impressions of the real causes of problems.
c. Write down what your opinions and what you've heard from others.
d. Regarding what you think might be performance problems associated with an employee, it's often useful to seek advice from a peer or your supervisor in order to verify your impression of the problem.
e.Write down a description of the cause of the problem and in terms of what is happening, where, when, how, with whom and why.
3.Define the Goal or Objective
In a sense, every problem is a situation that prevents us from achieving previously determined goals. If a personal goal is to lead a pleasant and meaningful life, then any situation that would prevent it is viewed as a problem. Similarly, in a business situation, if a company objective is to operate profitably, then problems are those occurrences which prevent the company from achieving its previously defined profit objective. But an objective need not be a grand, overall goal of a business or an individual. It may be quite narrow and specific. "I want to pay off the loan on my car by May," or "The plant must produce 300 golf carts in the next two weeks," are more limited objectives. Thus, defining the objective is the act of exactly describing the task or goal.
4. Identify alternatives for approaches to resolve the problem
a. At this point, it's useful to keep others involved (unless you're facing a personal and/or employee performance problem). Brainstorm for solutions to the problem. Very simply put, brainstorming is collecting as many ideas as possible, then screening them to find the best idea. It's critical when collecting the ideas to not pass any judgment on the ideas -- just write them down as you hear them.
5. Select an approach to resolve the problem
When selecting the best approach, consider:
a. Which approach is the most likely to solve the problem for the long term?
b. Which approach is the most realistic to accomplish for now? Do you have the resources? Are they affordable? Do you have enough time to implement the approach?
c. What is the extent of risk associated with each alternative?
6. Plan the implementation of the best alternative (this is your action plan)
a. Carefully consider "What will the situation look like when the problem is solved?"
b. What steps should be taken to implement the best alternative to solving the problem? What systems or processes should be changed in your organization, for example, a new policy or procedure? Don't resort to solutions where someone is "just going to try harder".
c. How will you know if the steps are being followed or not? (these are your indicators of the success of your plan)
d. What resources will you need in terms of people, money and facilities?
e. How much time will you need to implement the solution? Write a schedule that includes the start and stop times, and when you expect to see certain indicators of success.
f. Who will primarily be responsible for ensuring implementation of the plan?
g. Write down the answers to the above questions and consider this as your action plan.
h. Communicate the plan to those who will involved in implementing it and, at least, to your immediate supervisor.
(An important aspect of this step in the problem-solving process is continually observation and feedback.)
7. Monitor implementation of the plan
Monitor the indicators of success:
a. Are you seeing what you would expect from the indicators?
b. Will the plan be done according to schedule?
c. If the plan is not being followed as expected, then consider: Was the plan realistic? Are there sufficient resources to accomplish the plan on schedule? Should more priority be placed on various aspects of the plan? Should the plan be changed?
8. Verify if the problem has been resolved or not
One of the best ways to verify if a problem has been solved or not is to resume normal operations in the organization. Still, you should consider:
a. What changes should be made to avoid this type of problem in the future? Consider changes to policies and procedures, training, etc.
b. Lastly, consider "What did you learn from this problem solving?" Consider new knowledge, understanding and/or skills.
c. Consider writing a brief memo that highlights the success of the problem solving effort, and what you learned as a result. Share it with your supervisor, peers and subordinates