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Decision Making and Creativity

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					C H A P T E R: E I G H T



                  Decision Making
                  and Creativity



                               8
Decision Making at Radical

Radical Entertainment founder
Ian Wilkinson (third from right)
meets with employees every
week to reinforce the
Vancouver-based games
developer’s emphasis on
creative decision making and
employee involvement.
                                   Ron Sangha




                             2
Decision Making Defined

Conscious process of
making choices among
one or more
alternatives with the
intention of moving
toward some desired
state of affairs.         Ron Sangha




                   3
Rational Choice Decision Process




              4
Problem Identification Process
Problems and opportunities are not
announced or pre-defined
  need to interpret ambiguous information

Problem identification uses both logical
analysis and unconscious emotional reaction
during perceptual process
  need to pay attention to both logic and emotional
   reaction in problem identification




                        5
Famous Missed Opportunities

A famous missed opportunity for
many Hollywood studios: Nia
Vardalos’s comedy screenplay
about her Greek-Canadian family
in Winnipeg was rejected by
almost everyone, yet it eventually
became the top-grossing
independent film in history and
was nominated for an Oscar.
                                     CP/Everett Collection




                            6
  Problem Identification Challenges

1. Influence from others ‘frames’
   the situation
2. Coping mechanisms block out
   negative information
3. Opportunities that differ from
   mental models become missed
   opportunities
4. Faulty diagnostic skills
   •   Decisiveness short circuits     CP/Everett Collection
       problem identification
   •   Defining problems in terms of
       solutions


                            7
Identifying Problems Effectively

Be aware of perceptual and
diagnostic limitations

Understand mental models

Discussing the situation with
colleagues -- see different
perspectives
                                CP/Everett Collection




                       8
Making Choices: Rational vs OB Views

  Goals       Rational: Clear, compatible, agreed upon

              OB: Ambiguous, conflicting, lack agreement


Processing
              Rational: People can process all information
Information
              OB: People process only limited information

Evaluation
              Rational: Choices evaluated simultaneously
 Timing
              OB: Choices evaluated sequentially

                                                    more

                     9
Making Choices: Rational vs OB (con’t)

  Standards      Rational: Evaluate against absolute standards

                 OB: Evaluate against implicit favourite


  Info Quality   Rational: People rely on factual information

                 OB: Rely on perceptually distorted information

   Decision
                 Rational: Maximization -- the optimal choice
   Objective
                 OB: Satisficing -- a “good enough” choice



                        10
Emotions and Making Choices

1. Emotional marker process forms
   preferences before we consciously think
   about choices
2. Moods and emotions influence the
   decision process
   • affects vigilance, risk aversion, etc.
3. We ‘listen in’ on our emotions and use that
   information to make our choices


                        11
Intuitive Decision Making

Ability to know when a problem or opportunity exists
and select the best course of action without
conscious reasoning
Intuition as emotional experience
    Gut feelings are emotional signals
    Not all emotional signals are intuition -- uses situation
     specific templates of tacit knowledge

Intuition as rapid unconscious analysis
    Uses action scripts -- preprogrammed decision and
     behavior routines



                              12
Making Choices more Effectively

Systematically evaluate alternatives
Balance emotions and rational
influences
Scenario planning




                 13
Escalation of Commitment

Escalation of commitment
occurred when the British
government continued funding
the Concorde supersonic jet
long after it’s lack of
commercial viability was
apparent. Some scholars refer
to escalation of commitment as
the “Concorde fallacy.”
                                 © Corel Corp. With permission




                       14
Escalation of Commitment Causes


1. Self-justification

2. Prospect theory
   effect

3. Perceptual blinders

4. Closing costs

                             © Corel Corp. With permission




                        15
Evaluating Decisions Better

1. Separate decision choosers from
   evaluators
2. Establish a preset level to abandon the
   project
3. Involve several people in the evaluation
   process




                   16
Employee Involvement Defined

    The degree to which employees
    influence how their work is organized
    and carried out
        Level of control over decision making
        Different levels and forms of
         involvement




                  17
Employee Involvement Model

                               Potential Involvement
                                    Outcomes
                               • Better problem
 Employee                        identification
Involvement                    • More/better solutions
                                 generated
                               • Best choice more
              Contingencies      likely
              of Involvement   • Higher decision
                                 commitment




                  18
Contingencies of Involvement

 Higher employee involvement is better when:

     Decision    • Problem is new & complex
     Structure     (i.e., nonprogrammed decision)

    Knowledge    • Employees have relevant knowledge
     Source        beyond leader

    Decision     • Employees would lack commitment
   Commitment      unless involved

     Risk of     • Norms support firm’s goals
     Conflict    • Employee agreement likely



                      19
Creative Process Model


                                      Verification


                            Insight


               Incubation


 Preparation



                       20
Characteristics of Creative People


Above average intelligence

Persistence

Relevant knowledge and experience

Inventive thinking style




                  21
Creative Work Environments

Learning orientation
    Encourage experimentation
    Tolerate mistakes

Intrinsically motivating work
    Task significance, autonomy, feedback

Open communication and sufficient resources
Team competition and time pressure have complex
effect on creativity




                           22
Creative Activities

    Redefine        Associative                Cross-
  the Problem          Play                   Pollination


• Review          • Storytelling          • Diverse teams
  abandoned
  projects        • Artistic activities   • Information
                                            sessions
• Explore issue   • Morphological
  with other        analysis              • Internal
  people                                    tradeshows




                       23
C H A P T E R: E I G H T



                  Decision Making
                  and Creativity



                               8
C H A P T E R: E I G H T



                  Solutions to
                  Creativity
                  Brainbusters


                                 8
Double Circle Problem




             26
Nine Dot Problem




             27
Nine Dot Problem Revisited




             28
Word Search




FCIRVEEALTETITVEERS




              29
Burning Ropes




                                  After first rope burned
                                  i.e. 30 min.




    One Hour to Burn Completely




                 30
C H A P T E R: E I G H T




                  Chapter 8
                  Extras



                              8
Levels of Employee Involvement


          High involvement
  High          Employees have complete decision
                 making power (e.g., SDWTs)


          Full consultation
 Medium         Employees offer recommendations
                 (e.g., gain sharing)


          Selective consultation
                Employees give information, but
  Low            don’t know the problem


                 32

				
DOCUMENT INFO
Description: Prof Rushen's notes for MBA / BBA students