48 terms

QDC1: Decision-Making Tools

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Team
Is a small number of people with complementary skills who are committed to a common purpose, a set of performance goals, and an approach for which they hold themselves mutually accountable.
Types of Teams
Leadership, Problem-Solving, Natural Work, Self-Managed, Virtual, and Project
Leadership Teams
Quality Councils and Quality Improvement Teams
Quality councils (Steering Committees)
Responsible for establishing overall quality policy and for guiding the implementation and evolution of quality throughout the organization.
Quality improvement teams
Provide the leadership for quality at mid- and lower levels of the organization
Problem-Solving Teams
Work to improve quality by identifying and solving specific quality-related problems facing the organization.
Natural Work Teams
Are organized to perform a complete unit of work, such as assembling a product, creating plans for a product or service, or performing a research study from beginning to end.
Self-managed teams (SMTs) also known as self-directed teams or autonomous work groups
Are natural work teams with broad responsibilities, including the re- sponsibility to manage themselves.
Virtual Teams
Are groups of people who work closely together despite being geographically separated.
Project Teams
Are chartered to perform one-time tasks such as technology implementation. Six Sigma comprised of several types of individuals such as: Champions, Master Black Belts, Black Belts, Green Belts, and Team Members.
Team Effectiveness Criteria
1. The team must achieve its goals of quality improvement.
2. Teams that improve quality performance quickly are more effective than those that take a long period of time to do so.
3. The team must maintain or increase its strength as a unit.
4. The team must preserve or strengthen its relationship with the rest of the organization.
10 ingredients for a successful team:
1. Clarity in team goals.
2. An improvement plan.
3. Clearly defined roles.
4. Clear communication.
5. Beneficial team behaviors.
6. Well-defined decision procedures.
7. Balanced participation.
8. Established ground rules.
9. Awareness of group process.
10. Use of the scientific approach.
Team Membership and Roles
Assume a variety of roles in performing their duties:
-Some are task-oriented, for example, initiating projects, collecting information, analyzing data, using quality tools (flowcharts, cause-and-effect diagrams, etc.), creating ac- tion plans, writing reports, and so on.
-Others are relationship-oriented, such as en- couraging other team members, listening carefully, and respecting others' opinions.
-Both types of roles are necessary for teams to function effectively, and proper selec- tion and training of team members is important to ensure that they possess both technical and interpersonal skills to perform these roles.
Team Processes
Problem Selection, Problem Diagnosis, Work Allocation,
Communication, Coordination, Organizational Support, and Team Charters.
Team Charter
Is an explicit, written document that offers guidelines, rules, and policies for team members.
Decision making
Identifying and choosing solutions that lead to a desired end result.
Rational model
Logical four-step approach to decision making.
Problem
Gap between an actual and a desired situation.
Scenario technique
Speculative forecasting method.
Optimizing
Choosing the best possible solution.
Nonrational models
Explain how decisions actually are made.
Bounded rationality
Constraints that restrict rational decision making.
Satisficing
Choosing a solution that meets a minimum standard of acceptance.
Garbage can model
Holds that decision making is sloppy and haphazard.
Judgmental heuristics
Rules of thumb or shortcuts that people use to reduce information-processing demands.
Knowledge management
Implementing systems and practices that increase the sharing of knowledge and information throughout an organization.
Tacit knowledge
Information gained through experience that is difficult to express and formalize.
Explicit knowledge
Information that can be easily put into words and shared with others.
Decision-making style
A combination of how individuals perceive and respond to information.
Intuition
Making a choice without the use of conscious thought or logical inference.
Decision tree
Graphical representation of the process underlying decision making.
Group Involvement in Decision Making
1. Developing a clear understanding of the problem. This requires that the group possess the information needed to make a good decision.
2. Developing decision criteria. In other words, the group needs to determine the criteria that will be used to select a solution.
3. Thoroughly and accurately assessing the positive and negative qualities of alternative solutions.
4. Encouraging minority dissent and norms of constructive conflict. Groups should embrace conflict rather than try to avoid it.
Advantages and Disadvantages of Group-Aided Decision Making
1. If additional information would increase the quality of the decision, managers should involve those people who can provide the needed information.
2. If acceptance is important, managers need to involve those individuals whose acceptance and commitment are important.
3. If people can be developed through their participation, managers may want to involve those whose development is most important.
Group versus Individual Performance
1. Groups were less efficient than individuals.
2. Groups were more confident about their judgments and choices than individuals.
3. Group size affected decision outcomes.
4. Decision-making accuracy was higher when (a) groups knew a great deal about the issues at hand and (b) group leaders possessed the ability to effectively evaluate the group members' opinions and judgments.
5. The composition of a group affects its decision-making processes and ultimately performance.
Consensus
Presenting opinions and gaining agreement to support a decision.
Brainstorming
Process to generate a quantity of ideas.
Nominal group technique
Process to generate ideas and evaluate solutions.
Delphi technique
Process to generate ideas from physically dispersed experts.
Creativity
Process of developing something new or unique.
Compare and contrast the rational model of decision making, Simon's normative model, and the garbage can model.
The rational decision-making model consists of identifying the problem, generating alternative solutions, evaluating and selecting a solution, and implementing and evaluating the solution. Research indicates that decision makers do not follow the series of steps outlined in the rational model. Simon's normative model is guided by a decision maker's bounded rationality. Bounded rationality means that decision makers are bounded or restricted by a variety of constraints when making decisions. The normative model suggests that decision making is characterized by (a) limited information processing, (b) the use of judgmental heuristics, and (c) satisficing. The garbage can model is based on the assumption that decision making is sloppy and haphazard. Decisions result from an interaction between four independent streams of events: problems, solutions, participants, and choice opportunities.
Discuss eight decision-making biases.
Decision-making bias occurs as the result of using judgmental heuristics. The eight biases that affect decision making include (1) availability, (2) representativeness, (3) confirmation, (4) anchoring, (5) overconfidence, (6) hindsight, (7) framing, and (8) escalation of commitment.
Discuss knowledge management and techniques used by companies to increase knowledge sharing.
Knowledge management involves the implementation of systems and practices that increase the sharing of knowledge and information throughout an organization. There are two types of knowledge that impact the quality of decisions: tacit knowledge and explicit knowledge. Organizations use computer systems to share explicit knowledge. Tacit knowledge is shared by observing, participating, or working with experts or coaches. Mentoring, informal networking, meetings, and design of office space also influence knowledge sharing.
Explain the model of decision-making styles.
The model of decision-making styles is based on the idea that styles vary along two different dimensions: value orientation and tolerance for ambiguity. When these two dimensions are combined, they form four styles of decision making: directive, analytical, conceptual, and behavioral. People with a directive style have a low tolerance for ambiguity and are oriented toward task and technical concerns. Analytics have a higher tolerance for ambiguity and are characterized by a tendency to overanalyze a situation. People with a conceptual style have a high threshold for ambiguity and tend to focus on people or social aspects of a work situation. This behavioral style is the most people oriented of the four styles.
Explain the model of intuition and the ethical decision tree.
Intuition consists of insight or knowledge that is obtained without the use of rational thought or logical inference. There are two types of intuition: holistic hunches and automated experiences. In turn, there are two sources of intuition: expertise, which consists of an individual's combined explicit and tacit knowledge regarding an object, person, situation, or decision opportunity; and feelings. Intuition is based on the interaction between one's expertise and feelings in a given situation. The ethical decision tree presents a structured approach for making ethical decisions. Managers work through the tree by answering a series of questions and the process leads to a recommended decision.
Summarize the pros and cons of involving groups in the decision-making process.
Although research shows that groups typically outperform the average individual, there are five important issues to consider when using groups to make decisions. (a) Groups are less efficient than individuals. (b) A group's overconfidence can fuel groupthink. (c) Decision quality is negatively related to group size. (d) Groups are more accurate when they know a great deal about the issues at hand and when the leader possesses the ability to effectively evaluate the group members' opinions and judgments. (e) The composition of a group affects its decision-making processes and performance. In the final analysis, managers are encouraged to use a contingency approach when determining whether to include others in the decision-making process.
Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision making.
Group problem-solving techniques facilitate better decision making within groups. Brainstorming is used to help groups generate multiple ideas and alternatives for solving problems. The nominal group technique assists groups both to generate ideas and to evaluate and select solutions. The Delphi technique is a group process that anonymously generates ideas or judgments from physically dispersed experts. The purpose of computer-aided decision making is to reduce consensus roadblocks while collecting more information in a shorter period of time.
Describe the stages of the creative process.
Creativity is defined as the process of using imagination and skill to develop a new or unique product, object, process, or thought. There are five stages of the creative process: preparation, concentration, incubation, illumination, and verification.
Discuss practical recommendations for increasing creativity.
Creativity can be enhanced by effectively managing the stages of creativity and by fostering a positive and supportive work environment. People need the time and space to be creative. Managers are encouraged to create a "safe" work environment that encourages risk taking, autonomy, collaboration, and trusting relationships among employees. It also is important to develop a "peer environment" in which people are more concerned about working for the greater good than their own personal success.
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