Decision making behavior within the organization


Case Scenario:

The CEO of your company has been extremely frustrated with what has been occurring within the organization lately. In a recent managers meeting he exclaimed, "Everyone around this place just follows the status quo. No one ever has any unique ideas on how we can make this organization better. You just sit here and wait foA combination of concepts m might be at play in this group. For example, Group polarization is group-produced enhancement of members' preexisting tendencies; a strengthening of the members' average tendency, not a split within the group. Groupthink is the "The mode of thinking that persons engage in when concurrence-seeking becomes so dominant in a cohesive in-group that it tends to override realistic appraisal of alternative courses of action." -Irving Janis (1971). On the other hand, conformity is a change in behavior or belief as a result of real or imagined group pressure (Learning Center, n.d.).

The concept that seems the most likely is that they have influenced the group decisions is Groupthink; because; it seems that the group is no longer making realistic appraisals of alternative course of actions: "No one ever has any unique ideas on how we can make this organization better. You just sit here and wait for me to give you directions on what to do." (From the case scenario). However, conformity might also be at play, as the norm for the group might be to follow directions without asking questions, and pressures members to conform to this norm as seen in the CEOs words: "you follow those directions word for word without asking any questions or making any improvements".

Group polarization might also be acting as a force because, this phenomenon presents in groups by people tending to be more extreme in their decisions. For example, people who tend to take risky decisions will make riskier decisions in a group as the risk is shared (risky shift). People who are more conservative will tend to make very conservative decisions as they take on the persona of the group and try to protect them from the effects of any risky decisions (Group Polarization Phenomenon). The latter seems true for this group, as they just follow the status quo, not willing to take any risk at all, just following orders.

Then you follow those directions word for word without asking any questions or making any improvements. We need to change this attitude and change it quickly" He then pointed out each of your group members and said, "You are in charge of fixing this and I want a strategy to fix this on my desk in one week!"

The CEO has created a group to analyze the possible causes and to identify recommendations to overcome what he sees as detrimental to the organizations success. YOU have been selected to be a member of this group.

Your group must do analysis, have discussions (either via the small group chat or discussion board) and come to a consensus to prepare a report (paper) that addresses the following:

Identify the decision theory or theories that your group believes best explains what is occurring within the organization (is the decision making behavior within the organization best explained by using groupthink, social comparison theory, conformity, group polarization, a combination of these concepts, or all of these concepts?). Be sure your group report fully supports your group's conclusions?

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Finance Basics: Decision making behavior within the organization
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