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E. FRANK HARRISON
Fifth Edition
The Managerial
Decision-Making Process
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The Managerial Decision-Making Process
Fifth Edition
Author: E. Frank Harrison, Ph.D.
Slides by Monique A. Pelletier, Ph.D.
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Individual Versus GroupDecision Making
n Theoretical Perspectives Groupdecisions are more likely to:
l take more timel be accepted by constituencies
l influence group members
l have a larger knowledge base
l be superior to average individuals
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Individual Versus GroupDecision Making (contd)
n Empirical Perspectives Groupdecisions are more likely to:
l be inferior to highly competent individuals
l be riskier than individual decisions
l tend to confirm theoretical perspectives
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Individual Versus GroupDecision Making (contd)
n The Risky Shift:
lGroup members accept more risk.
l
Group interaction encourages riskacceptance.
l Group presence encourages risk
acceptance.l Group diffusion of accountability
encourages risk acceptance.
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Individual Versus GroupDecision Making (contd)
n Group are superior in:
lsetting objectives l evaluating alternatives
l making choices
nIndividuals are superior in:
lsearch l implementation
l follow-up and control
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Figure 8.1 A Conceptual Model of Organizational Conflict
NATURE
OF
CON
FLICT
Understandingof
Conflict
Treatmentof
Conflict
Indicators
ofConflict
Determinantsof
Conflict
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Conflict in Decision Making
n Conflict stems from:
l competition for resources
l divergence of goalsl drives for autonomy
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Conflict in Decision Making(contd)
n Conflict is determined by:
l interdependent entities
l performance criteria and rewardsl communication problems
l role dissatisfaction
l personality attributes
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Conflict in Decision Making(contd)
n Indicators of Conflict:
l felt tension
l perceived disagreementl interference
l overstatement
l withholding of information
l annoyance
l distrust
l lack of friendliness
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Conflict in Decision Making(contd)
n Treatment of Conflict:
l avoidance
l problem solving
l superordinate goal
l smoothing
l compromise
l expansion of resources
l restoration of equilibrium
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Participation in Decision Making
n Theoretical Perspectives:
l highly situational
l managerial preferencesl time and cost constraints
l enlightened management
l positive employee attitudes
l acceptance of the decision
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Participation in Decision Making(contd)
n Empirical Perspectives:
l productivity increases
l broadened acceptance
l increased satisfaction
l managerial attitudes
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Gender Differences and Similarities inDecision Making
n Similarities as numerous as
differences
n Differences usually not directly
focused on decision making
n No justification for stereotypes
