Common Decision-Making Errors (continued)
- Organizational paralysis
Occurs when formal decision-making process is so overused that
people avoid taking action. 3 aspects:
- "Dialogue
of the Deaf"
various levels of organizational hierarchy disagree on a
strategy, work to justify their positions, but never win over
the other group.
- Example: a security firm
where line-level personnel wanted to carry pepper spray for protection.
Manager was told to do a report for the risk-management department,
which was opposed. Risk managers continually asked for more documentation,
which the line-level people saw as a delaying tactic. Finally
gave up.
- Vicious cycle
same kind of effort to justify various positions, but takes place
on a single level. Likely if organization's power structure involves
a wide range of people and senior management vacillates.
- Example: younger security
officers wanted to work 10-hr. shift, older officers on day shift
wanted to remain on 8-hr. shift. Both sides did a variety of
memos, but senior management didn't do anything.
- Decision vacuum
management has no clear vision, but mandates a study that lacks
immediacy and firm deadline. Results are meaningless, vague.
Langley (1995) recommends that organizations re-examine where
in the hierarchy these decisions are being made -- to determine
whether that level of management is actually needed. she also
recommends staff groups and consultants shouldn't be detached
from immediate decision making, and that the organization should
be prepared to make decisions based on all opinions, including
dissenting ones.
- Cognitive nearsightedness
when you respond to visible, immediate problems and neglect long
term ones.
- Example: "Take, for
example, a high turnover rate of entry-level security officers.
The immediate response to this issue is that the security firm
will need to hire new security personnel. A more significant
issue, however, is why the turnover rate is high. Further analysis
into this issue may reveals that employees are dissatisfied with
the work environmental or that this firm's compensation levels
are not in line with those of other companies in the area."
(my emphasis)
- Situational dominance
when people bypass formal policies and procedures and respond
directly to a situation -- well =-suited to crises, but not necessarily
to other situations.
- Strategic Evasion
happens when decision
makes feel they have little hope of solving the problem and the
consequences of a mistake are high.
Attributes
of effective decision makers
need to look both at
the process and the outcome when looking at characteristics of
"master decision makers."(Murnighan and Mowen, 2002).
They:
- make sure process is structured
and thorough
- possess "ingrained structural
processes for making decisions"
- have "vast repertoire of
experience" -- good and bad
- have fun at work
- work environment encourages
experimentation
- realize own strengths and limits
-- willing to ask for help
- "implement decisions with
force and precision"
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