Decision Making

1. Decision Making Strategies
Standards as Related to
Change
Richard B. Magbatoc

2. Objectives:
1. Define decision making;
2. Understand different types of decisions;
3. Explain change management models;
4. Describe Lewin’s three-stage model of planned change;
5. Differentiate between business process re-engineering,
technological change, and incremental change and;
6. Identify the internal and external pressures for change, which drive
organizations to adapt and evolve.

3. Ty Howard

4. What Is Decision Making?
Decision making refers to making choices among
alternative courses of action—which may also
include inaction.
Decision making is the process of making
choices by identifying a decision, gathering
information, and assessing alternative
resolutions.

5. Here are some basic questions you can ask yourself to assess
the ethics of a decision.
Is this decision fair?
Will I feel better or worse about myself after I make this
decision?
Does this decision break any organizational rules?
Does this decision break any laws?
How would I feel if this decision was broadcast on the news?

6. Types of Decisions
programmed decisions-decisions that occur frequently
enough that we develop an automated response to them.
nonprogrammed decisions -decisions that are unique and
important which require conscious thinking, information
gathering, and careful consideration of alternatives.

7. Decision making can also be classified into three
categories based on the level at which they occur.
Strategic decisions set the course of organization.
Tactical decisions are decisions about how things
will get done.
Finally, operational decisions are decisions that
employees make each day to run the organization.

9. Decision-making models designed to understand
and evaluate the effectiveness of nonprogrammed
decisions:
1. Rational
2. Bounded rational
3. Intuitive
4. Creative

10. The rational decision-making model describes a
series of steps that decision makers should
consider if their goal is to maximize the quality of
their outcomes. In other words, if you want to
make sure you make the best choice, going
through the formal steps of the rational decision-
making model may make sense.

11. Steps in the Rational Decision-Making Model

12. Making “Good Enough” Decisions
The bounded rationality model of decision
making recognizes the limitations of our
decision-making processes. According to
this model, individuals knowingly limit
their options to a manageable set and
choose the best alternative without
conducting an exhaustive search for
alternatives.

13. Making Intuitive Decisions
The intuitive decision-making model has
emerged as an important decision-
making model. It refers to arriving at
decisions without conscious reasoning.

14. Making Creative Decisions
In addition to the rational decision
making, bounded rationality models,
and intuitive decision making, creative
decision making is a vital part of being
an effective decision maker. Creativity is
the generation of new, imaginative
ideas.

15. The Creative Decision-Making Process

16. Dimensions of Creativity

17. Ideas for Enhancing Organizational Creativity
Team Composition (Organizing/Leading)
Team Process (Leading)
Leadership (Leading)
Culture (Organizing)

18. Team Composition (Organizing/Leading)
Diversify your team to give them more inputs to
build on and more opportunities to create
functional conflict while avoiding personal
conflict.
Change group membership to stimulate new
ideas and new interaction patterns.
Leaderless teams can allow teams freedom to
create without trying to please anyone up front.

19. Team Process (Leading)
Engage in brainstorming to generate ideas—
remember to set a high goal for the number of ideas
the group should come up with, encourage wild ideas,
and take brainwriting breaks.
Use the nominal group technique in person or
electronically to avoid some common group process
pitfalls. Consider anonymous feedback as well.
Use analogies to envision problems and solutions.

20. Leadership (Leading)
Challenge teams so that they are engaged but
not overwhelmed.
Let people decide how to achieve goals, rather
than telling them what goals to achieve.
Support and celebrate creativity even when it
leads to a mistake. But set up processes to learn
from mistakes as well.
Model creative behavior.

21. Culture (Organizing)
Institute organizational memory so that individuals do not
spend time on routine tasks.
Build a physical space conducive to creativity that is playful
and humorous—this is a place where ideas can thrive.
Incorporate creative behavior into the performance appraisal
process.

23. Change Management
Change management is defined as the methods and
manners in which a company describes and
implements change within both its internal and
external processes. This includes preparing and
supporting employees, establishing the necessary
steps for change, and monitoring pre- and post-
change activities to ensure successful implementation.

24. Change Management
Change management is a systematic approach to
dealing with the transition or transformation of an
organization's goals, processes or technologies. The
purpose of change management is to implement
strategies for effecting change, controlling change and
helping people to adapt to change. Such strategies
include having a structured procedure for requesting a
change, as well as mechanisms for responding to
requests and following them up.

25. John Kotter’s Change Management Model

26. ADKAR Model of Change Processes

28. Lewin’s Three-Stage Process of Change
One of the most useful frameworks in this area is the
three-stage model of planned change developed in the
1950s by psychologist Kurt Lewin.Lewin K. This model
assumes that change will encounter resistance. Therefore,
executing change without prior preparation is likely to lead
to failure.

29. Lewin’s Three-Stage Process of Change

30. Communicating a Plan for Change
Do people know what the change entails,
or are they hearing about the planned
changes through the grapevine or office
gossip? When employees know what is
going to happen, when, and why, they
may feel more comfortable.
UNFREEZE

31. Develop a Sense of Urgency
People are more likely to accept change if they feel that
there is a need for it. If employees feel their company is
doing well, the perceived need for change will be
smaller. Those who plan the change will need to make
the case that there is an external or internal threat to the
organization’s competitiveness, reputation, or
sometimes even its survival and that failure to act will
have undesirable consequences.
UNFREEZE

32. Building a Coalition
To convince people that change is needed, the
change leader does not necessarily have to
convince every person individually. In fact,
people’s opinions toward change are affected by
opinion leaders or those people who have a
strong influence over the behaviors and
attitudes of others.
UNFREEZE

33. Provide Support
Employees should feel that their needs are not ignored.
Therefore, management may prepare employees for
change by providing emotional and instrumental
support. Emotional support may be in the form of
frequently discussing the changes, encouraging
employees to voice their concerns, and simply
expressing confidence in employees’ ability to perform
effectively under the new system.
UNFREEZE

34. Allow Employees to Participate
Studies show that employees who participate in
planning change efforts tend to have more positive
opinions about the change. Why? They will have the
opportunity to voice their concerns. They can shape
the change effort so that their concerns are
addressed. They will be more knowledgeable about
the reasons for change, alternatives to the proposed
changes, and why the chosen alternative was better
than the others.
UNFREEZE

35. 2. Executing Change
The second stage of Lewin’s three-stage change
model is executing change. At this stage, the
organization implements the planned changes
on technology, structure, culture, or
procedures. The specifics of how change should
be executed will depend on the type of change.
CHANGE

36. Three tips that may facilitate the success
of a change effort:
Continue to Provide Support
Create Small Wins
Eliminate Obstacles

37. 3. Refreezing
After the change is implemented, the long-term
success of a change effort depends on the extent to
which the change becomes part of the company’s
culture. If the change has been successful, the revised
ways of thinking, behaving, and performing should
become routine. To evaluate and reinforce (“refreeze”)
the change, there are a number of things management
can do.
REFREEZE

38. Publicize Success
To make change permanent, the organization
may benefit from sharing the results of the
change effort with employees. What was gained
from the implemented changes? How much
money did the company save? How much did
the company’s reputation improve?
REFREEZE

39. Reward Change Adoption
To ensure that change becomes permanent,
organizations may benefit from rewarding those who
embrace the change effort (an aspect of the controlling
function). The rewards do not necessarily have to be
financial. The simple act of recognizing those who are
giving support to the change effort in front of their
peers may encourage others to get on board.
REFREEZE

40. Embracing Continuous Change
While Lewin’s three-stage model offers many useful
insights into the process of implementing change, it
views each organizational change as an episode with a
beginning, middle, and end. In contrast with this
episodic change assumption, some management
experts in the 1990s began to propose that change is—
or ought to be—a continuous process.
REFREEZE

41. Leadership Strategies for Change
Successful change management is more likely if leaders:
 Create a definable strategy - Define measurable stakeholder aims,
create a business case for their achievement (and keep it continuously
updated), monitor assumptions, risks, dependencies, costs, return on
investment, and cultural issues affecting the progress of the associated
work.
 Communicate effectively - Explain to stakeholders why the change is
being undertaken, what the benefits of successful implementation will
be, and what how the change is being rolled out.
• Empower employees - Devise an effective education, training, or skills
upgrading scheme for the

42. Leadership Strategies for Change
 Counter resistance - Identify employee issues and align them
with the overall strategic direction of the organization.
Adapt the change initiative when necessary to mitigate
discontentment.
 Support employees - Provide personal counseling (if
required) to alleviate any change-related fears.
 Track progress - Monitor the implementation and fine-
tuning as required.

43. Six Leadership Styles for Change
Conner (1998) identified six distinct leadership
styles related to change: anti-change, rational,
panacea, bolt-on, integrated, and continuous.
Each leadership style "represents a unique set of
perceptions, attitudes, and behaviors regarding
how organizational disruption should be
addressed".

44. Six Leadership Styles for Change
 The anti-change leader - A leader embracing this style seeks to
avoid change as much as possible. The message is, "Stay the
course. Keep adjustments small. No need to change in any major
way".
 The rational leader - This leader focuses on how to constrain and
control change with logical planning and clearly defined steps.
 The panacea leader - The panacea leader believes that the way
to respond to pressure for change is to communicate and
motivate.

45. Six Leadership Styles for Change
 The bolt-on leader - This leader strives to regain control of a
changing situation by attaching (bolting on) change
management techniques to ad-hoc projects that are created in
response to pressure for change.
 The integrated leader - The integrated leader searches for ways
to use the structure and discipline of what Harding and Rouse
(2007) called "human due diligence" (the leadership practice of
understanding the culture of an organization and the roles,
capabilities, and attitudes of its people) as individual change
projects are created and implemented.

46. Six Leadership Styles for Change
 The continuous leader - The continuous leader works
to create an agile and quick-responding organization
that can quickly anticipate threats and seize
opportunities as change initiatives are designed and
implemented.

47. Types of Organizational Change
There are three main categories of change:
business process re-engineering,
technological change, and incremental
change.

48. Business Process Re-Engineering
Business process re-engineering (BPR) is a
business management strategy first pioneered in
the early 1990s that focuses on the analysis and
design of workflows and processes within an
organization. BPR aims to help organizations
fundamentally rethink how they do their work in
order to dramatically improve customer service,
cut operational costs, and become world-class
competitors.

49. Incremental Change
Incremental change is a method of
introducing many small, gradual (and often
unplanned) changes to a project instead of
a few large, rapid (and extensively
planned) changes. Wikipedia illustrates the
concept by building an encyclopedia bit by
bit.

50. Technological Change
Technological change (TC) describes the
overall process of invention, innovation, and
diffusion of technology or processes. The
term is synonymous with technological
development, technological achievement,
and technological progress.

51. Inside and Outside Forces for
Organizational Change
Inside forces include strategic and human
resource changes, while outside forces
include macroeconomic and technological
change.

52. Outside Forces
 Economics - The 2008 economic collapse is a strong
example of why adaptability is important. As consumers
tightened their belts, organizations had to either do the
same and lower supply to match lowered demand or
come up with new goods to entice them.
 Competition - Changes in the competitive landscape,
such as new incumbents, mergers and acquisitions, new
product offerings, and bankruptcies, can substantially
impact a company's strategy and operations.

53. Outside Forces
 Technology - Technological changes are a constant threat,
and embracing new technologies ahead of the competition
requires adaptability.
 Globalization - Capturing new global markets requires
product, cultural, and communicative adaptability.
 Legislation - New laws and legislation can dramatically
change operations. Companies in industries that impact
the environment must constantly strive to adapt to cleaner
and more socially responsible operating methodologies.

54. Inside Forces
 Management Change - New CEOs or other executive players can
significantly impact strategy and corporate culture.
 Organizational Restructuring - Organizations may be required to
significantly alter their existing structure to adapt to the
development of new strategic business units, new product lines,
or global expansion.
 Intrapreneurship - New ideas come from inside the organization
as well as outside the organization, and capitalizing on a great
new idea will likely require some internal reconsideration.

56. How much have we changed
as a teacher in this time of
pandemic?

57. Thank you.

58. References
https://courses.lumenlearning.com/principlesmanagement/chapter/11-2-understanding-decision-
making/
https://blog.beingfirst.com/effective-decision-making-as-a-driver-of-successful-transformation
https://learn.saylor.org/course/view.php?id=70&sectionid=667
https://asq.org/quality-resources/change-management
https://www.lucidchart.com/blog/using-the-adkar-model-for-change-management
https://www.smartsheet.com/8-elements-effective-change-management-process