Review Foundations of Group Behavior (Chap. 7) True/False

Summary, implications for managers

New: Understanding Work Teams (Chap. 8)

Review Questions (Multiple Choice) Summary, implications for managers

Mid-term Exam

OB 6OB 6

© The McGraw-Hill Companies, Inc., 1998

Models of Decision Making (1)

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 rational- Decision making is characterized by * limited information processing * use of rules of thumb or shortcuts * satisficing

Models of Decision Making (2)

The Six Thinking Hats (Edward de Bono)- Consists of a structured sequence e.g.

WHITE: establish the facts GREEN: generate alternative solutions YELLOW: show benefits BLACK: check for risks RED: select a solution BLUE: make action plan

---> ACT: implement

© The McGraw-Hill Companies, Inc., 1998

Models of Decision Making (3)

The Garbage Can Model- Based on belief that decision making is a sloppy and haphazard process- Decisions result from an interaction between four independent streams of events:

problems choice opportunities

solutionsparticipants

Review

True and False

Chapter 7

Major Components Influence Group Behavior

Organization strategy

Authority structure

Formal regulation

Organizational resources

Human resource selection process

Performance evaluation & reward system

Organizational culture

Physical work setting

Abilities

Personalities characteristics

Formal leadership

Roles

Norms

StatusSize

Composition

Cohesiveness

Group task

Group process

Group output

1+1 > 2 1+1 < 2

Ms.Chung

Group Decision Making PROs CONs

More information & knowledge

Increase diversity of

views

Higher quality decisions

High degree of acceptance

Time consuming

Conformity

pressure

Dominated by one or a few members

Ambiguous

responsibilityMs.Chung

Group Decision Making Techniques

Interacting groups: the most common

form but often lead to conformity of

opinion Brainstorming: utilizes idea-generation

process but does not drive to a better solution

Nominal group techniques

Electronic meeting Ms.Chung

.

S A V Swiss-AIT-Vietnam Management Development Programme

Dr. Arno Schircks

SDC

Case study Olympic Team(Chapter 8)

Team concepts are introduced:

Ropes course and parties for building

cohesion

Roles: clown around, be amusing

Balance between having an individual star

and team work

Conflict can be useful to a team. S A V Dr. A. SchircksSDC

S. ROBBINS, OB 8th ed., 1998, Prentice Hall

Teams

The Evolution of a TeamA work group becomes a team when: Leadership becomes a shared activity Accountability shifts from strictly individual to both individual and

collective The team develops its own purpose or mission Problem solving becomes a way of life, not a part-time activity Effectiveness is measured by the group’s collective outcomes and

products

“ A small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually

accountable.” Kreitner, 1998

© The McGraw-Hill Companies, Inc., 1998

Types of Work Teams

Advice teams: help broaden information base for managerial decisions

Production teams: perform day-to-day operations

Project teams: apply specialized knowledge for creative problem solving

Action teams: collection of highly-coordinated specialists who exhibit peak performance on demand

© The McGraw-Hill Companies, Inc., 1998

Self-Managed Work Teams (1/2)

10 to 15 people They take on responsibilities of their

former supervisors: planning scheduling of work collective control over the pace of work operating decisions taking actions on problems select own members evaluate each other’s performance

S. ROBBINS, OB 8th ed., 1998, Prentice Hall

Self-Managed Work Teams (2/2)

Experts predicts that 40% to 50% of all US workers could be managing themselves by the end of the decade.

S. ROBBINS, OB 8th ed., 1998, Prentice Hall

Why Work Teams Fail Mistakes typically made by management Teams cannot overcome weak strategies and poor business practices Hostile environment for teams: command-and-control culture;

competitive/individual reward plans; management resistance Teams adopted as a fad, a quick-fix; no long-term commitment Lessons from one team not transferred to others (limited

experimentation with teams) Vague or conflicting team assignments Inadequate team skills training Poor staffing of teams Lack of trust -> next slide

© The McGraw-Hill Companies, Inc., 1998

The 5 Dimensions of Trust

Integrity Honesty and truthfulness Competence Technical and interpersonal

knowledge and skills Consistency Reliability, predictability and good

judgment in handling situations Loyalty Willingness to protect and save

face for a person Openness Willingness to share ideas and

information freely

S. ROBBINS, OB 8th ed., 1998, Prentice Hall

How to build trust? Demonstrate that you are working for others’ interest as well as your

own. Be a team player. Practice openness: keep everyone informed; give feedback; tell the

truth. Respect: delegate; be an active listener. Be fair: give credit where due; objectively evaluate performance. Speak your feelings. (red hat) Predictability: be consistent in decision making; keep your promises. Competence: demonstrate good business sense and professionalism,

also in people skills.

S. ROBBINS, OB 8th ed., 1998, Prentice Hall

Implication for Managers

Ms. Chung

Work team - Work group

Work team: generates positive synergy through coordination effort

Work group: Interacts to share information & to help each

member perform within his or her area of responsibility

Work groups Work teams

Share information

Neutral (or negative)

Individual

Random & varied

Collective performance

Positive

Individual & mutual

Complementary

Goal

Synergy

Accountability

Skills

Ms.Chung

Team Building & Resistance

Challenges National culture is highly individualistic

Organization has historically valued individual

achievement

Turn individuals into team players Be sure that team members can fulfill their

team roles Provide training

Encourage cooperative efforts by reward system

Ms.Chung

High-performance Team The best work teams tend to be small

Three different types of skills: technical, problem solving &

decision-making, interpersonal

Properly match people to various roles

Have common & meaningful purpose

Have specific, measurable, realistic performance

Have leadership & structure

Make members individually and jointly accountable for the team’s

goals Have appropriate performance evaluation & reward system

High mutual trust

Ms.Chung

A Contingency Model forStaffing Work Groups

Spread most talented personnel around if the

objectives are to:

- Improve performance of all work groups

- Train and develop new talent

Concentrate most talented personnel in

groups if the objective is to:

- Maximize performance of best group(s)

© The McGraw-Hill Companies, Inc., 1998

Case: „Power Station“ Team-Leader Effectiveness

Offer the opportunity to analyze team-leader effectiveness

Provide with a forum for discussing various aspects of team leadership

Encourage to share individual views on team management and functioning

Objectives

A Contingency Model for Selecting a Solution

© The McGraw-Hill Companies, Inc., 1998

Characteristics of Decision Task:The decision problem

* Unfamiliarity* Complexity*Instability

The decision environment*Irreversibility* Significance *Accountability

* Time and/or money constraints

Characteristics of Decision Maker * Knowledge * Ability * Motivation

Generatingalternatives

Strategies toselect a solution* Aided analytic* Unaided-analytic* Nonanalytic

A Model of Participative Management

© The McGraw-Hill Companies, Inc., 1998

Participation inGoal Setting

Participation inDecision Making

Participation inProblem SolvingParticipation in

Change

Contingency Factors* Design of work

* Trust* Readiness to Participate

AutonomyIncreased

control over workbehavior

Completion ofMeaningful

Tasks

Acceptanceand Commitment

Security

Challenge

Satisfaction

Performanceand Innovation

Summary for managers

Need for developing interpersonal and people skills

OB replaces intuition by systematic study at three levels

OB focuses on how to improve the dependent variables: productivity, ethically healthy work climate, …