Making Effective Decisions
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- Alexandrina Newman
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1 The end goal of any decision-making event is to make the best choice. You have examined how individuals and organizations arrive at those choices and the systems, forces, and motivations behind them. Moreover, it is important to understand the manner in which the rational choice, competing values, and judgment heuristics decision-making models can complement one another and be integrated into original and innovative systems that best serve the particular needs of a given organization. Keep this in mind as you investigate the upcoming scenarios and answer relevant questions. From the following scenarios, select the best answer for each of the following questions. Scenario 1: Janet, the senior human resources officer at Image Lab IT Consulting, has asked Carla, a newly hired representative, to conduct the initial round of interviews for a new analyst position with the company. Janet has informed Carla that although she will be present during Carla s interviews, she will only offer support if Carla requests it. Moreover, Janet wants Carla to conduct the interviews as she sees fit and to offer her opinions on each prospective candidate once the interviews are complete. Janet will use Carla s input and suggestions to finalize the hiring decision and will then discuss with Carla her performance and areas in which she could improve to better facilitate the interview process. 1. Which decision-making dynamic is depicted in this scenario? Identify the correct model or approach represented in the scenario that can facilitate sound decision making within an organization. A. Open-systems model B. Director, producer approach C. Human relations model D. Monitor, manager approach The correct answer is: Open-systems model. Scenario 2: This scenario depicts the human relations model found within the competing values decision-making model. In this example, the mentor (Janet) creates a very flexible environment for Carla to perform while still within the construct of the company. As such, the scenario conforms to the parameters identified in the upper-left quadrant of the competing values model (internal, flexible). Here, Carla is able to use an actual work experience as a learning opportunity as well. Janet is on hand to guide Carla, if necessary, and later provides immediate feedback to her junior colleague. 1
2 This model can be invaluable to businesses looking to both instill a sense of autonomy among employees while also providing employees the organizational support they need to perform according to company standards or industry regulations. 2. True or False: The three models of decision making are exclusive and incompatible with one another. The correct answer is: False. The three decision-making models are not incompatible with one another. Rather, together they provide the process, organizational dynamics, and psychology behind the integrated and complementary methodologies companies utilize to make sound business decisions. 3. The model is a decision-making process based on identifying and ranking various criteria and alternative solutions A. Rational choice B. Competing values C. Judgment heuristics The correct answer is: Rational choice. The rational choice model is used to effectively identify and rank the given criteria and potential solutions of a given decision event. Scenario 3: Upon review of Carla s candidate reports, Janet finds that Carla has ranked the two male applicants much higher than any of the four women she interviewed. Janet s own opinions did not match Carla s analyses, and a reexamination of applicant resumes confirmed to her that three of those same women appeared the most qualified for the position based on experience and education alone. When asked about the decisions behind her rankings, Carla responded that she had problematic experiences working with other women colleagues in the past and that the women applicants displayed characteristics she associated with her former female coworkers. She also said that because one of the women applicants had been fired from her last job, the likelihood that she would also be terminated at Image Lab IT Consulting would be higher than the other applicants. 4. Identify the decision-making dynamic and its defining characteristics as portrayed in this scenario. 2
3 A. Competing values B. Decision-making dynamic C. Judgment heuristics D. Rational choices The correct answer is: Judgment heuristics. This scenario depicts the judgment heuristics model of decision making. Carla s opinions toward the female applicants also underscores the prevalence of biases within the decision-making process and how biases can influence choices. In particular, Carla s apprehension about hiring other women colleagues provides a good example of the conjunction fallacy, one of the representative heuristic biases. This bias occurs when it is assumed that a set of specific conditions are more likely than a single, general one. People often wrongly associate probability when basing the decision on two individual and separate criteria. In Carla s case, she assumes that because one of the applicants had been fired from her last job, the probability of her being fired at Image Lab IT Consulting would increase this is simply not the case. 5. Which of the following values or biases result from the interactions, regulations, and relationships inherent within the Internal plus Flexibility quadrant that could affect an organization's decision making? The correct answer is: Rational choices. The rational choice model provides a structure allowing for differing decision-making system elements to integrate into methodologies that best serve the given situation. 6. True or False: The competing values model implies conflicting values. The correct answer is: False. The competing values model does not imply conflicting values just differences in perspective and principles. This model serves to account for all of the divergent influences of decision making within an organization. 3
4 Scenario 4: Janet has asked Carla to go through each applicant s qualifications once again, referencing both her interview notes and the candidates resumes to rank them according to her preference. Choose the best answer to the following multiple choice questions. 7. This interview process and ranking system itself can be considered an example of the decision-making model. The correct answer is: Rational choices. Much like the interviewing and hiring decision process before Carla and Janet, the rational choice model serves to identify the criteria upon the decision will be based and then weighs this criteria accordingly. The next steps involve generating alternative solutions, weighing those options as well, and then choosing the best option. 8. Which model examines the human psychology that underlies decision making in a world increasingly shaped by seemingly incompatible values? The correct answer is: Judgment heuristics. The representative, availability, and affect judgment heuristics (and their associated biases) frame decision making within the human psychology that determines one s valuations of liberty versus equality and community versus efficiency. What are the characteristics of each judgment heuristic type? 9. What are the characteristics of the representative judgment heuristic type? 4
5 The correct answer is: Precognitive- and emotion-based. 10. What are the characteristics of the affect judgment heuristic type? The correct answer is: Memory- and convenience-based. 11. What are the characteristics of the availability judgment heuristic type? The correct answer is: Based upon perceived similarities with previously formed. 12. True or False: Ultimately, when considering how organizational decisions are made, the ends outweigh the means. The correct answer is: True. The final goal of decision making is to find valid solutions that increase productivity and overall organizational efficiency. How an organization accomplishes this is less important than the final results. 5
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