INDIVIDUAL DECISION MAKING AND CREATIVE POWER

INDIVIDUAL DECISION MAKING AND CREATIVE POWER

1. DECISIONS

   • Defined decision: Occurs when a person chooses between two or more answers.
   • Problem: A discrepancy between the ideal and the real that requires a decision about which alternative should be chosen to remedy the discrepancy.

2. TYPES OF DECISIONS

   • Programmed decisions
     • They use standardized response alternatives to recurring problems. (routine).
     • Lower level managers face more programmed decisions.
   • Nonprogrammed decisions
     • They involve creative thinking to develop unique responses to non-recurring problems for which no alternatives are known beforehand.
       • NAME: De la Rosa Rodríguez Juan Carlos; Group: 2NV37
         • Bibliography: Cook, C. (2005). Chapter 5 Individual Decision Making and Creativity Power. Obtenido de Slide ToDoc: https://slidetodoc.com/chapter-5-individual-decision-making-and-creativity-power/
     • Higher level managers typically are involved in nonprogrammed decision making.

3. DEGREE OF RISK AND UNCERTAINTY ASSOCIATED WITH DECISIONS

   • Certainty
     • Facts are well known, alternatives are known and outcomes can be predicted accurately and the Usually involves lowerlevel issues.
   • Risk
     • Facts are known, alternatives are less clearly define and the probability of outcomes is predicted from experience.
   • Uncertainty
     • Facts are unknown, few alternatives are known and the probability of outcomes can not be predicted accurately.

4. RISK AND UNCERTAINTY

   • Prospect theory
     • The economic model of the idea that the most people have an aversion to loss and depending upon depends upon whether the person frames the decision in terms of winning or losing.
     • If decision risk is framed in terms of winning, managers are more likely to take a chance on an outcome of potential value.
     • If decision risk is framed negatively, managers are less likely to take the risk.

5. DECISION-MAKING MODELS

   • Classic decision model
     • The environment is certain and stable, Managers are rational decision-makers.
   • Behavioral decision model
     • There is environmental uncertainty and instability, managers have cognitive limitations and make decisions based on their perceptions of a situation.

6. THE CLASSIC / BEHAVIORAL DECISION

   • Making Model
     • Managers make decisions within a generally rational framework though they may rely on personal intuition and judgment at various points in the decision process, decision criteria, standards of judgment used to evaluate alternatives.

7. THE DECISION-MAKING PROCESS

   • Identify and diagnose the problem, establish decision criteria, develop creative alternatives, evaluate the alternatives, choose one alternative, implement the decision, evaluate and control.

8. BOUNDED RATIONALITY AND INFLUENCES ON DECISION MAKING (HERBERT SIMON)

   • The extent of the decision maker’s metal abilities.
   • External influences over which the decision maker has little or no control.
   • Satisficing decisions: When the first sufficient alternative that is adequate, acceptable, or passable is chosen.
   • Heuristics: Simplified strategies (rules of thumb) for decision making.

9. INFLUENCES ON DECISION MAKING CONTRIBUTING TO BOUNDED RATIONALITY

   • Procrastination, intuition, personality and cognitive intelligence, emotional intelligence, quality and Accessibility of Information, political Considerations, crisis and conflict, values.

10. INFLUENCES ON BOUNDED RATIONALITY

    • Intuition: An experience-based way of knowing or reasoning in which weighing and balancing evidence are done automatically without using a step-by-step logical process.
    • Self-efficacy: The feeling of being an effective and competent person with respect to a task.
    • Procrastination: Delaying taking action without a valid reason results in indecisiveness and inaction.

11. THE NATURE OF CREATIVITY

    • Creativity
      • Is the process of developing good ideas that can be put into action, is essential to dealing with nonprogrammed decisions.
    • Approaches to understanding creativity:
      • Steps in the creative process, characteristics of creative people, conditions necessary for creativity.

12. STEPS IN THE CREATIVE PROCESS

    • Opportunity or problem recognition, immersion, incubation, insight, verification and application.

13. CHARACTERISTICS OF CREATIVE PEOPLE

    • Knowledge
      • Have acquired a broad background of facts and information needed to support creative problem solving when combining ideas and things in new and different ways.
    • Intellectual abilities
      • They are brilliant, they are good at generating and choosing alternatives, they are youthfully curious and empathetic, creatively use both fluid (processing) and crystallized (accumulated intelligence).
    • Personality
      • Have a positive image of yourself, able to cope with criticism of their ideas, can tolerate the isolation necessary for developing ideas, they are frequently nonconformists and do not need strong approval from the group, they are persistent in carrying through on an idea, can deal with ambiguity and chaos.

14. CONDITIONS NECESSARY FOR CREATIVITY

    • Internal factors affecting creativity
      • Expertise: The necessary knowledge to put facts together.
      • Creative-thinking skills: The flexibility and imagination with which individuals approach problems.
      • Internal (intrinsic) motivation: A fascination with or passion for the task.
    • External factors affecting creativity
      • An environmental need that stimulates goal setting.
      • Conflict and tension that put people on edge: Creating situations that require flexibility and imagination in the way in which individuals approach problems.
      • Encouragement from others: Establishing a permissive non-punitive environment that welcomes new ideas and original thinking.

15. Enhancing and Improving Creativity

    • Creative problem solving requires: Overcoming traditional ways of thinking by breaking down the rigid thinking that blocks new ideas and encouraging creative people.

16. TECHNIQUES FOR ENHANCING CREATIVITY

    • Brainstorming: Encourage spontaneous expression of ideas; gather the largest quantity and variety of ideas to increase the likelihood of a breakthrough.
    • Idea quotas: Demand that employees come up with new ideas on a regular basis.
    • Heterogeneous group: Form professionally and culturally diverse groups for a variety of viewpoints.
    • Financial incentives: Offer monetary rewards for suggestions and implemented ideas.
    • Architecture and physical layout: Remove structural barriers to communication and interaction to foster creative thinking.
    • Inspiration: Inspire workers to think creatively through managerial leadership.