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7.5 Trying to be rational isn’t always easy. What are the barriers?
There are nine decision-making barriers, or biases: (1) availability, (2)
7.6 How do I work with others to make things happen?
Group decision making is important in today’s day and age. In order to reach
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1. How do the tracking devices discussed in this case aid in making more rational
and intuitive decisions? Explain.
These tracking devices allow businesses to gather data and have credible
information when making decisions and selecting from alternative options.
2. Which of the seven evidence-based decision-making implementation principles is
consistent with the use of tracking data for making decisions?
First, “No brag, just facts” is important in this discussion. Data needs to be
evaluated, and sensors provide a superb source of data. “Like everything else,
3. Use Figure 7.3 to assess the ethical orientation of what is being done by
Turnstyle. Is the company behaving ethically?
The first question to ask is if this action is legal. If there are no laws currently
against it, which is true as of June 2015, then the answer would yes, and you
could continue with the analysis. Does the proposed action maximize
shareholder value? It depends if the expenses associated with the project will be
4. Which of the common decision-making biases are likely to be reduced by using
location data to make product promotion decisions?
The first bias that can be reduced is the representativeness bias. Assuming
MANAGEMENT IN ACTION: Companies Use Tracking Devices to Help Make
Decisions
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5. What is your overall opinion about companies collecting and selling tracking data
without your consent? Explain.
There is no clear answer to this subjective question. However, consent in
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.
Would You Agree to Wear a Sensor So Your Employer Can Track Your
Movements & Conversations?
The onset of Big Data and its application has prompted companies to ask employees to
wear tracking sensors. For example, Bank of America Corp. decided to study whether
face time among coworkers at call centers affected performance. Ninety employees
were asked to wear sensors “for a few weeks that contained tiny sensors to record their
SOLVING THE CHALLENGE
What would you do if your employer asked you to wear a tracking device for a few
weeks?
1. No problem, I would wear it. After all, results from the study might be used to
improve the work environment.
Being a team player is a good characteristic to have, but there will be many
2. No way. This violates my privacy.
Many employees will have this feeling. An employee can turn off the tracking on
3. I would do it only if I was assured that the company would only be given group–
based data. In this way, the company would not have information about specific
individuals.
LEGAL/ETHICAL CHALLENGE
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This comes back to trust. Employees may be wary knowing that companies can
4. While I like the idea behind option 3, I don’t trust that my employer would not
request or force the provider of the technology to provide individual-level data. I
wouldn’t do it.
5. Propose and explain other options.
Any company planning on doing this should have frequent meetings with
Chapter 07 – Individual & Group Decision Making: How Managers Make Things Happen
Group Exercise #1: Trying to Solve an “Electric” Problem in
Managerial Planning
Objectives
• To assess a specific problem where planning is required.
• To arrive at a mutual and effective solution as a group, taking into consideration
different perspectives and different goals.
Introduction
Increasingly problems are being solved by groups of people, each with a different stake
Scenario
The company, a large processing center operating in a highly bureaucratic fashion, was
experiencing challenging problems in a major division of its operations. Fifteen months
earlier, when an electrical storm caused loss of power in one company building, five of
the seven members of the night-shift service staff reported strange sensations
Instructions
The class should divide into groups of seven people each. Within each group, each
person should assume one of the roles described below. Take turns discussing the
GROUP EXERCISES
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Roles: The Perspectives of the Positions Involved
1. Senior management. “We don’t need this problem. We have to restore normal
levels of control and efficiency, based on measured results.”
4. The politicians. “We don’t want more media coverage on this one and more
charges of mismanagement that consume our time. We don’t want the unions asking
us to solve their problems.”
5. The service staff. “We’re working with a poor system. We don’t want the strain and
stress. Management has to sort the situation out. More stress breaks. Safer
equipment. Find the ‘techies’ that are ‘zapping us.’ ”
Questions for Discussion
1. How did your group resolve the situation? Explain.
2. To what extent did your decision making process represent a rational or
nonrational approach? Explain.
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Group Exercise #2: Ethical Decision Making
Objectives
• To look at the stages in practical decision making.
• To gain practice in ethical decision making.
Introduction
In this chapter you learned there are four stages in making practical decisions. The third
Instructions
Break into groups of five or six people and read the following case. As a group, discuss
the decision made by the company and answer the questions for discussion at the end
The Case
For large cellular service providers, maintaining their own customer service call center
can be very expensive. Many have found they can save money by outsourcing their
customer service calls to outside companies.
TELECOMPROS is one such company. It specializes in cell phone customer service,
Six months ago, TELECOMPROS acquired a contract with Cell2U, a large cellular
service provider serving the western United States. At the beginning of the contract,
Cell2U was very pleased. As a call center, TELECOMPROS has a computer system in
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hold for 45 minutes or longer, and at any given time throughout the day there were as
many as 50 customers on hold. It was clear to Cell2U that the original number of
Three months later, though, TELECOMPROS customer service supervisors noticed a
decrease in the number of customer service calls. It seemed that the reps had done
such a good job that Cell2U customers had fewer problems. There were too many
people and not enough calls; with little to do, some reps were playing computer games
or surfing the Internet while waiting for calls to come in.
Knowing that if Cell2U analyzed its customer service needs it would want to decrease
Questions for Discussion
1. Was the decision made by TELECOMPROS an ethical one? Why or why not?
2. What stages in the Practical Decision-Making Process did TELECOMPROS
managers skip? Describe and explain.
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Group Exercise #3: Your Preferred Decision-Making Style
Objectives
• To assess your knowledge of decision making.
• To give students an opportunity to further explore their decision-making style
through analyzing its strengths and weaknesses.
Introduction
The goal of this exercise is to consider the pros and cons of different decision making
Instructions
1. Complete the “What Is Your Decision–Making Style” self-assessment. Once
complete determine your decision-making style (Directive, Analytical, Conceptual, or
Behavioral).
Questions for Discussion
1. What are the strengths and weaknesses of your decision making style?
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Decision-Making Styles Matrix
Directive
Decision
Makers
Conceptual
Decision
Makers
Behavioral
Decision
Makers
Things that
drive you
crazy about