Hrob chapter 8

Kotter's Eight Stages of Change

1. Create urgency 2. Form a powerful coalition 3. Create the vision for the change 4. Communicate the change 5. Remove obstacles 6. Plan for and create short-term wins 7. Consolidate the improvements and make adjustments 8. Anchor and institutionalize the change into the organizational culture

Vroom-Jago looks at three main factors in (team) decision making

1. Decision quality (how important is the "right" decision?) 2. Subordinate commitment (how important is it that your team buys into the decision?) 3. Time constraints (how much time do you have to make the decision)

To use the Vroom-Jago Model you need to answer these questions

1. Is high quality important here/is a good solution absolutely critical? 2. As the leader, do you have enough information of your own to make a good decision? 3. Is the problem structured in a way that is clearly defined and organized and has recognized solutions? 4. Do the members of the group have to accept this decision for it to work? 5. If you make this decision yourself, are you sure the group will accept it? 6. Are the group members aligned with the same goals that you are trying to achieve? 7. Is disagreement likely among group members in reaching a decision?

Illusion of control:

A decision-making bias whereby people assume they will have more control over a situation than they might actually posses

Vroom-Jago Model

A decision-making model that can be used to determine how involved your employees should be in the decision-making process

Consultative II (C2)

A group discussion occurs to determine input The leader makes the ultimate decisio

Status quo bias:

Choosing not to decide and sticking with things the way they are

Sunk cost bias:

Continuing along the same path (even if incorrect) because the organization has already spent time and money on that path

Autocratic II (A2)

Information is requested from the team but the leader makes the decision The team might not know why the leader is requesting such information

Framing bias:

Occurs in decision making when we don't fully understand the problem at hand or it is identified incorrectly

Groupthink

Occurs in group decision making when a group is so concerned with maintaining agreement that it fails to evaluate all available alternatives and options

Rational Decision-Making Model

One of the most common models leaders use to make decisions: 1. Identify the problem 2. Establish decision criteria 3. Weigh decision criteria 4. Generate alternatives 5. Evaluate alternatives 6. Choose the best alternative 7. Implement the decision 8. Evaluate the decision.

Organizational Justice

Procedural and distributive justice act as interacting principles

Consultative I (CI)

The leader explains the situation to individuals on the team and gets input, and while the leader makes the ultimate decision, the group input weights heavily on the leader's decision

Autocratic I (AI)

The leader makes the decision

Group II (G2, or Participative)

The leader presents the situation and the group as a while makes the decision

Distributive Justice

The perceived decision fairness of compensation, favors, access, and reward outcomes in general

Procedural Justice

The perceived fairness of the decision means used to determine the rewards or outcomes

Six Thinking Hats

This model offers a set of six perspectives (or steps) that can be used in making effective decisions Helps people look at all sides of a decision

Analysis Paralysis

This occurs when we overthink the decision and spend so much time thinking about it that we never take action

Green hat

allows us to come up with solutions/courses of action

Red hat

helps us look at the emotional aspect

White hat

helps us look at the facts

Black hat

helps us look at the negatives

Blue hat

helps us manage the process of making the decision

Yellow hat

helps us think about the positives

Individual causes can also be a reason employees resist change:

• Fear of the unknown • Fear of failure • Job security • Individual characteristics

Group causes in resisting change:

• Group norms • Group cohesion • Leadership

Some of the organizational reasons for change resistance:

• Inertia • Culture • Lack of rewards • Structure • Poor timing

Symptoms and reasons for groupthink in the decision making-process:

• Self-censorship • Illusion of immortality • Illusion of invulnerability • Apparent agreement in the group

As a leader, there are a few ways you can deal with analysis paralysis:

•*Expectation clarification*: Make sure everyone on your team (including you) understands the clear expectations, goals, and outcomes of the decision •*Checkpoints*: Set realistic checkpoints and small goals. Sometimes considering a big decision can be daunting. Making the decision in small steps can be a helpful way to overcome analysis paralysis •*Certainty of uncertainty*: Understand — and ensure your team understands — that no decision will ever be 100% sure. Get comfortable with the fact that it may be 80% right, which means it may be the right decision to go with •*Trust and support*: If you do not support your employees when they make bad decisions, it could result in them being unwilling to make any decision

How to avoid group think

•*Nominal group technique*: A decision-making technique where members of a group have time to discuss their opinion and then ideas are ranked and added up to come to a final decision. •*Consensus*: A decision-making technique in which the approval of all or most group members is necessary to move forward with the decision, •*Decision tree*: A visual depiction of all possible options, costs, and outcomes of each alternative

James B. Quinn expanded on Mintzberg's "stream of decisions" concept into seven main factors successful decisions:

1. Past organizational strategies; Typically people commit a vast amount of energy and resources to past courses of action, especially when they were personally responsible for choosing that strategy. 2. Managerial/leader attitudes toward risk (i.e., risk tolerance ); Risk avoiders are more likely to use past strategies (however dysfunctional), while risk-tolerant organizations/leaders react more comfortably with discussions and exploration of a wide range of change options. 3. Degree of organizational dependence on environmental factors and/or regulators; A high level of dependence on external factors (e.g.,government, unions, etc.) lowers the level of flexibility the organization has in the strategic choice process 4. Organizational culture and power relationships; When choosing a strategy and planning for change, one should identify the following: a) The kind of culture needed to support the proposed change b) The existing culture c) Any gaps or potential resistance between the current and needed culture d) What methods will be used to decrease resistance and encourage participation and acceptance e) How to implement the strategy f) Whether the strategy needs to be refined 5. Impact of proposed change on lower-level managers and staff personnel; It is very common that those responsible for the change implementation are lower-level managers and staff. Therefore, it is imperative to consider the impact of the change on them and solicit their input 6. Probable actions and reactions of competitors; One should consider the proposed change from the frame of competitors (either internal or external) and the perceived threat of successful change to them 7. Timing of change strategy (i.e., windows of opportunity, staging, and project length)

Overconfidence effect:

A bias in which a leader's subjective confidence in his or her judgment is higher than accuracy in making a decision

Intuition

A complex form of reasoning based on past experience, double-loop learning, patterns, concepts, and other useful knowledge a leader has

Decision making based on intuition is not as favored as other decision models

TRUE

Due to technology's ability to provide numerous data points, charts, graphs, and information, making decisions based on intuition when combined with other methods can be an important part of the leadership toolbox

TRUE

Leaders should appreciate the relative interaction of these principles (Procedural and distributive justice) when decisions are viewed as unfavorable or unpopular

TRUE

There are many reasons (organizational, group, or individual) why people will resist a change or a decision

TRUE

There may be perceived fairness when making a decision using a systematic process such as the Vroom-Jago model

TRUE

With popular decisions, distributive justice likely enjoys positive attention, and procedural justice is assumed to have been fair

TRUE

With unpopular decisions, procedural justice tends to be an overwhelming focus of the people impacted by the decision outcome, often requiring a greater need for explanation and rationale justification

TRUE