- The rational-economic model assumes that decisions are made considering all possible alternatives to the problems before selecting the optimal solution for the decision maker. The administrative model says that humans are imperfect and that limits the making of optimal, rational-economic decisions. Tell me about a decision you have made. How did you gather information about alternatives and make the decision? Which model did you follow? Explain.
Decision made was on moving a business to a more profitable location in terms of customer numbers. The information about alternatives was gathered through verifying the cause of the problem that is a limited number of customers; defining the problem and detailing it by giving the possible solutions . This took place in a series of steps including formulating the goal, attaching an operation to the goal; identifying the decision criteria and weighing the criteria. The decision was made through a tool, the decision tree.
I followed the rational-economic model. This is because as compared to the administrative model, my main role would be to collect the information concerning the problem, and the decision made would be a contribution by the organization, not by a single person. Greater interest would be represented . This is unlike the administrative model in which the decision made would be subjective. Although the rational-economic model requires a lot of time and information for a decision to be pulled, it presents a better, more informed opportunity.
- Which kind of trust is likely to exist in the following situations? Explain.
- You are working on a group project for a class that is to last three weeks. Each team member will be rated and graded his/her contribution; however, all need to contribute for the project to be a success.
Simple trust is the form of trust required in this situation. This form of trust occurs without any suspicion from the concerned parties, simply because the concerned parties had not given any reason to be doubted. In other words, it comes about when no reason has ever arisen to cause suspicions. Each of the group members trusts that others will do their research and make a good presentation for the group’s success.
- You have played on a soccer team for three years. Most of the players have stayed the same. You have traveled to tournaments together; shared rooms, stories, and long bus rides; and you know you can depend on your teammates.
This situation presents authentic trust. It is based on full self – awareness of one’s team, its limits and strengths. This form of trust is good for the team since it leads to increased productivity. However, this trust is built over time; it does not happen at first site. This form of trust is cultivated over the years. The persons or organizations involved are well aware of their limits, strengths and weaknesses. It is the form of trust that is most encouraged in an organization, due to its great benefits of ensuring high productivity.
- You order a pizza online and give Pizza Hut your debit card information. You do this because you know they are now obligated to bring you a pizza and not to abuse your bank information.
This situation presents blind trust. Blind trust fails to put into consideration that a certain act may endanger ones’ safety. In this example, the pizza company may decide to use your personal details to perform fraud or other activity. The customer is however oblivious of this, presenting a form of blind trust.
- Think of someone in a position of power. Tell me whom that person is. Which type of power do they have—position or personal? Both? What are their bases of power? Which bases of power do you use? Explain.
The person in a position of power is an army commander. He possesses both position and personal power. Position power in that on formal duties, he is regarded as a superior and personal in that his personal relationship with his colleagues is affected by his positional power. His basis of power is formal in that he is a hierarchical environment. As a superior, he is given the mandate to exercise power over his subordinates.
- You are a manager at a small retail clothing store and the president/owner of the company tells you “Nobody around here has any respect for me. The only reason they listen to me is because this is my company”. Company employees have told you that he is highly controlling, makes all the decisions, and does not let anyone think for themselves. Under what conditions would you expect this type of leadership style to be most effective? How could he develop those behaviors?
The president could take less control on the employees, allowing them room to express themselves. He should be diplomatic enough to accommodate suggestions from his employees.
He could develop these behaviors through an approach in which he appreciates the diversity of his employees and rewards them according to their incentives . He should work on a democratic point of view, allowing communication from all his employees equally. He could use the promising tool of mutual exchange. That is optimal performance from his employees, provided he gives them good treatment. He should often participate in the organizations’ activities, offering guidance to his employees. Engaging the team members in processes of decision making will also boost their performance and esteem as corporate individuals.
- The president of your company, a small manufacturing company, has been complaining that sales are stagnant. You discover that a key problem is that the market for the product your company makes is fully developed and the products the company makes are not very exciting. No one in the company seems to care about doing anything innovative. Instead, the employees seem more interested in doing things the way they have always done them. What components of creativity would be necessary and may be missing from this company? How would you promote creativity in this organization? What would the work environment look like? What would the challenges be organizationally? Financially? Other challenges?
The components of creativity lacking in the company are skills in a task domain, skills in creative thinking as well as intrinsic motivation in that none of the employees is concerned, despite the company’s poor performance. The company lacks both team and individual creativity. The employees lack creativity-relevant skills, which would come in handy in ensuring the additional skills in their fields that would promote their product. To promote creativity in the organization, the employees should be trained to be creative. They should be encouraged to open up to new ideas, as well as to table the ideas they have concerning the issues at hand. They should take time to analyze and understand the problem in order to react in a proper manner. They should be encouraged to put divergent thinking into actions. This means they should develop new ideas and apply them to the existing problems. Another way of promoting creativity would be by developing creative work environments. This can be achieved by providing autonomy. This means that the employees are given room to control themselves. Providing contact to other creative people will also help since when surrounded by creative individuals, one will most definitely be creative. The jobs given to the employees should be made innately exciting. The employees should set their own creative goals, as individuals, and as an organization.
The work environment should be on a collectivism approach, rather than in an individualism approach. This way, the employees will get more involved, and not leave the task to a single party. Involvement of all the employees results into more informed solutions and ideas of boosting the company’s products to match the market. Challenges encountered would be both organizational and financial challenges. Financial challenges would come in when the company wants to provide a better motivational environment geared towards creativity. Organizational challenges would also arise depending on the type of leadership in the company.
- Choose one of the following videos that we have watched in class and explain how that concept clarified the textbook information and/or opened your eyes to a new approach to organizational behavior. How could a manager (or you) apply this information?
Motivation: http://www.ted.com/talks/dan_pink_on_motivation.html
This video encourages employees to think outside the box, to be open to new ideas. There is need to overcome functional fixedness. This is the need to use new and better means in solving a given problem. Problem solving should not only be through a predefined process. Employers have also got to learn the power of motivating their employees. Motivated employees perform better. People need to be rewarded to give good results. They need incentives to sharpen their thinking. Motivation is a powerful tool in organizational success.
A manager could apply this information to increase productivity of employees by rewarding them, giving them incentives to encourage better performance.
References
Greenberg, J., & Baron, R. (2010). Behavior in Organizations (10th Edition). Upper Saddle River, New Jersey: Prentice Hall PTR.
