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Chapter 8

Chapter 8

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Human Resources
MHR 405
Sharon Matthews

CHAPTER 8 CREATIVITY AND DECISION MAKING CREATIVTIY ♦ Creativity: a process influenced by individual and organizational factors that results in the production of novel and useful ideas, products or both ♦ Creativity can be found and is required in all aspects of business and management The 4 Stages of the Creative Process 1) Preparation: means seeking out new experiences and opportunities to learn, because creativity grows from a base of knowledge 2) Incubation: during this stage, the individual engages in other pursuits while the mind considers the problem and works on it. Incubation is a process of reflective thought and is often conducted subconsciously 3) Illumination: illumination occurs when the individual senses an insight for solving the problem. This stage is also called the “aha” experience. 4) Verification: is conducted to determine whether the solution or idea is valid. This is accomplished by thinking though the implications of the decision, presenting the idea to another person or trying out the decision Individual Influences in Creative Problem Solving Cognitive Processes, Personality Factors, and Mental Blocks ♦ Divergent Thinking: an individuals ability to generate several potential solutions to a problem ♦ Associational abilities and the use of imagery, unconscious processes and personality factors all play a role in creative thinking ♦ Good mood, tolerance of ambiguity, intrinsic motivation, risk taking and a desire for recognition are all relate to creative thinking ♦ Mental blocks can diminish creativity Right Brain versus Left Brain Preferences ♦ The right side is the center for creative functions and intuition while the left side is the center for logic, detail and planning ♦ There are advantages to both kinds of thinking, so the ideal situation is to be brain-lateralized Organizational Influences on Creativity Organizational Facilitators of Creativity www.notesolution.com 1) Leadership: leadership can encourage norms that are associated with increased group innovation, such as support for risk taking, tolerance of mistakes, teamwork and speed of action. 2) Organizational Structure: When the chain of command is minimized and the structure kept simple, employees are encouraged to create and innovate 3) Physical environment and communication: information flow and the physical environment are important so that ideas can surface and be heard 4) Recognition: monetary rewards may or may not improve creative performance 5) Culture: allowing employees to fail, making work more fun, and providing creativity training also facilitate creativity. Organizational Barriers to Creativity ♦ Creativity killers include focusing on how work is going to be evaluated, being watched while you are working, and competing with people in win-lose situations. These barriers include internal political problems, harsh criticism of ideas, destructive internal competition and avoidance of risk ♦ Research has indicated that creative performance is highest when there is a match or fir between the individual and organizational influences on creativity. INDIVIDUAL DECISION MAKING AT WORK ♦ Decision Making: a conscious process of making choices among one or more alternatives and developing a commitment to a course of action ♦ Programmed Decision Making: a simple, routine matter for which a manager has an established decision rule ♦ Nonprogrammed Decision Making: a new, complex decision that requires a creative solution ♦ Effective Decision: a timely decision that meets a desired objective and is accepted by the individual ♦ Ethical Decision: a decision that is made after exploring alternatives and their consequences so that actions are consistent with ones personal values and commonly held values of the organization and society Models of Decision Making The Rational Model of Decision Making ♦ Rationality refers to a logical, step by step approach to decision making, with a thorough analysis of alternatives and their consequences. ♦ This model has the following important assumptions; - The outcome will be completely rational - The decision maker has a consistent system of preferences, which is used to choose the best alternative - The decision maker is aware of all the possible alternatives www.notesolution.com - The decision maker can calculate the probability of success for each alternative ♦ The rational model of decision making consists of eight steps 1) Recognize the problem and the need for a decision 2) Identify the objective of the decision 3) Gather and evaluate data and diagnose the situation 4) List and evaluate alternatives 5) Select the best course of action 6) Implement the decision 7) Gather feedback 8) Follow up The Bounded Rationality Model of Decision Making ♦ Bounded Rationality: a theory that suggests that there are limits to how rational a decision maker can actually be ♦ Satisfice: t
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