BNAD 302 10/10/13 Lecture 11Outline of Last Lecture I. Decision MakingII. Satisficing and Incremental ModelsOutline of Current LectureI. Implementation principles of evidence based decision makingII. What makes it hard to be evidence basedIII. AnalyticsIV. Decision making stylesV. What managers need to know about groups and decision makingVI. What is organizational culture?VII. How employees learn cultureCurrent LectureI. Implementation principles of evidence based decision makinga. Treat your organization as an unfinished prototypeb. No brag, just fixc. See yourself and your organization as outsiders dod. Evidence based management is not just for senior executivese. Like everything else, you still need to sell itf. If all else fails, slow the spread of bad practiceg. The best diagnostic question: what happens when people fail?II. What makes it hard to be evidence baseda. There’s too much evidencei. Look for evidence that supports what you are looking for, and evidence that doesn’tb. There’s not enough good evidencec. The evidence doesn’t quite applyd. People are trying to mislead youe. You are trying to mislead youf. The side effect outweighs the cureIII. Analyticsa. Sophisticated forms of business data analysisb. Portfolio analysis, time series forecastc. Also called business analyticsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.d. Key attributes among analytics competitorsi. Use of modeling: going beyond simple descriptive statisticsii. Having multiple applications, not just oneiii. Support from the topIV. Decision making stylesa. Knowledge of your decision making stylei. Helps you to understand yourselfii. Can increase your ability to influence othersb. Ethical decision treei. PERT Chart, GAANT Chartc. Responses to a situationi. Ineffective Responses to a Decision Situation1. Relaxed avoidance2. Relaxed change3. Defensive avoidance4. Panicii. Three effective reactions: Deciding to Decide1. Importance2. Credibility3. Urgencyd. Common Decision Making Biasesi. Availability biasii. Confirmation biasiii. Representative biasiv. Sunk Cost biasv. Anchoring and adjustment biasvi. Escalation of commitment biase. Pros and Cons of Group Decision Makingi. Advantages of group decision making1. Greater pool of knowledge2. Different perspectives3. Intellectual stimulation better understanding of decision rationale4. Deeper commitment to the decisionii. Disadvantages of group decision making1. A few people dominate or intimidate2. Groupthink3. Satisficing4. Goal displacementV. What managers need to know about groups and decision makinga. They are less efficientb. Their size affects decision qualityc. Participative managementi. Process of involving employees in setting goals, making decisions, solving problems, and making changes in the organizationd. Group problem solving techniquesi. Consensus1. Occurs when members are able to express their opinions and reach agreement to support the final decisionii. Brainstorming1. Technique used to help groups generate multiple ideas and alternatives for solving problemsVI. What is organizational culture?a. Organizational culture:i. System of shared beliefs and values that develops within an organization and guides the behavior of its membersii. Also called corporate culture b. Culture plus structurei. Vision, strategy, culture, structural and internal practices, collective attitudes and behaviors, achievement of goalsc. Competing Values frameworki. Clan1. Thrust: collaborate2. Means: cohesion, participation, communication, empowerment3. Ends: morale, people development, commitmentii. Adhocracyiii. Hierarchyiv. Market1. Thrust: Compete2. Means: Customer focus, productivity3. Ends: Market share, profitability, goal achievementd. Three levels of Organizational Culturei. Level 1: Observable Artifactsii. Level 2: Espoused Valuesiii. Level 3: Basic AssumptionsVII. How employees learn culturea. Symboli. An object, act, quality, or event that conveys meaning to othersb. Storyi. Narrative based on true events, which is repeated – and sometimes embellished upon – to emphasize a particular valuec. Hero i. Person whose accomplishments embody the values of the organizationd. Rites and Ritualsi. Activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization’s lifee. 4 Functions of organizational culturei. Organizational identityii. Collective commitmentiii. Social system stabilityiv. Sense-making