Human Relations in Organizations: Applications and Skill Building 8th Edition by Robert Lussier

Exercise 16

In this exercise, you will learn how to use the situational decision-making model. You will realize that it is similar to the normative leadership model, but it has only one model and fewer questions.
Chapter 8 discussed the situational supervision model. Chapter 6 provided a situational communication model to use when communicating. Now you will learn a similar model to use when deciding which supervisory style to use when solving problems and making decisions. Selecting the appropriate situational supervisory style when solving problems and making decisions includes two steps: step (1) diagnose the situation, and step (2) select the appropriate style.
Step 1: Diagnose the Situation The first step is to diagnose the situational variables, which include time, information, acceptance, and employee capability level. See Exhibit 13.7 for a list of variables.
EXHIBIT 13.7 Variables Influencing Participation
Time The manager must determine if there is enough time to include the group in decision making. If there is not enough time, managers should use the autocratic style, regardless of their preferred style. In this case the manager should also ignore the other three variables; they are irrelevant if there is no time. If time permits, the manager considers the other three variables and selects the problem-solving and decision-making styles without considering time. When time is short, the manager may use the consultative style, but not the participative or laissez-faire styles. Time, however, is a relative term. In one situation, a few minutes may be considered a short time period, while in another, a month may be a short period of time.
Information Does the manager have enough information to make a quality decision alone? If the manager has all the necessary information, there is no need to use participation. The autocratic style may be appropriate. When the manager has some information but needs more, the consultative style may be appropriate. However, if the manager has little information, the appropriate style may be participative or laissez-faire.
Acceptance The manager must decide if the group's acceptance of the decision is critical to its implementation. If the manager makes the decision alone, will the group implement it? If so, the appropriate style may be autocratic. If the group will be reluctant, the appropriate style may be consultative or participative. If the group will probably not implement the decision unless consulted in advance, the participative or laissez-faire style may be appropriate.
Employee Capability The manager must decide if the group has the ability and willingness to be involved in problem solving and decision making. Does the group have the experience and information needed to be involved in problem solving and decision making? Will the group put the organization's or the department's goals ahead of personal goals? Does the group want to be involved in problem solving and decision making? Employees are more willing to participate when the decisions affect them personally. If the group's level of capability is low, an autocratic style may be appropriate. When a group's capability is moderate, a consultative style may be appropriate. If the group's capability level is high, a participative style may be appropriate. If the group's level of capability is outstanding, the laissez-faire style may be appropriate. Remember that a group's capability level can change from situation to situation. The top half of Exhibit 13.8 summarizes step 1.
Step 2: Select the Appropriate Supervisory Style for the Situation After considering the four variables, a manager uses the analysis to select the appropriate style for the situations at hand. In some situations, all variables suggest the same possible style, while other cases indicate conflicting styles. For example, the manager may have time to use any style and may have all the information necessary (autocratic); employees may be reluctant (consultative or participative); and the capability may be moderate (consultative). In situations where conflicting styles are indicated for different variables, the manager must determine which variable should be given more weight. In the above example, assume it was determined that acceptance was critical for successful implementation of the decision. Acceptance takes precedence over information. Realizing that employees have a moderate capability, the consultative style would be appropriate. See the bottom half of Exhibit 13.8 for an explanation of how the decision is made using each of the four situational supervisory styles.
EXHIBIT 13.8 Situational Decision Making
Applying the Situational Decision - Making Model
We will apply the model to the following situation:
Ben, a supervisor, can give one of his employees a merit pay raise. He has a week to make the decision. Ben knows how well each employee performed over the past year. The employees really have no option but to accept getting or not getting the pay raise, but they can complain to upper management about the selection. The employees' capability levels vary, but as a group, they have a high capability level under normal circumstances.
Step 1: Diagnose the Situation.
____ time ____ information ____ acceptance ____ capability
Ben, the supervisor, has plenty of time to use any level of participation. He has all the information needed to make the decision (autocratic). Employees have no choice but to accept the decision (autocratic). And the group's level of capability is normally high ( participative).
Step 2: Select the Appropriate Style for the Situation. There are conflicting styles to choose from (autocratic and participative):
____ yes time ____ S-A information ____ S-A acceptance ____ S-P capability
The variable that should be given precedence is information. The employees are normally capable, but in a situation like this, they may not be capable of putting the department's goals ahead of their own. In other words, even if employees know which employee deserves the raise, they may each fight for it anyway. Such a conflict could cause future problems. Some of the possible ways to make the decision are as follows:
• Autocratic (S-A). The supervisor would select the person for the raise without discussing it with any employees. Ben would simply announce the decision and explain the rationale for the selection, after submitting it to the payroll department.
• Consultative (S-C). The supervisor would consult the employees as to who should get the raise. Ben would then decide who would get the raise. He would announce the decision and explain the rationale for it. The supervisor may invite questions and discussion.
• Participative (S-P). The supervisor could tentatively select an employee to get the raise, but be open to change if an employee or group convinces him that someone else should get the raise. Or Ben could explain the situation to the group and lead a discussion of who should get the raise. After considering their input, Ben would make the decision and explain the rationale for it.
• Laissez-faire (S-L). The supervisor would explain the situation and allow the group to decide who gets the raise. Ben may be a group member. Notice that this is the only style that allows the group to make the decision.
Selection The autocratic style is appropriate for this situation because Ben has all the information needed, acceptance is not an issue, and capability is questionable.
Below are 10 situations calling for a decision. Select the appropriate problem-solving and decision-making style. Be sure to use Exhibit 13.8, p. 488, when determining the style to use. On the time, information, acceptance, and capability lines, place S-A, S-C, S-P, or S-L, as indicated by the situation. Based on your diagnoses, select the one style you would use. Note that style on the line preceding the situation.
1. You have developed a new work procedure that will increase productivity. Your boss likes the idea and wants you to try it within a few weeks. You view your employees as fairly capable and believe that they will be receptive to the change.
_____ time _____ information _____ acceptance _____ capability
2. The industry of your product has new competition. Your organization's revenues have been dropping. You have been told to lay off 3 of your 10 employees in two weeks. You have been the supervisor for over one year. Normally, your employees are very capable.
_____ time _____ information _____ acceptance _____ capability
3. Your department has been facing a problem for several months. Many solutions have been tried, but all have failed. You have finally thought of a solution, but you are not sure of the possible consequences of the change required or of acceptance by the highly capable employees.
_____ time _____ information _____ acceptance _____ capability
4. Flextime has become popular in your organization. Some departments let each employee start and end work when he or she chooses. However, because of the cooperative effort of your employees, they must all work the same eight hours. You are not sure of the level of interest in changing the hours. Your employees are a very capable group and like to make decisions.
_____ time _____ information _____ acceptance _____ capability
5. The technology in your industry is changing so fast that the members of your organization cannot keep up. Top management hired a consultant who has made recommendations. You have two weeks to decide what to do. Your employees are normally capable, and they enjoy participating in the decision-making process.
_____ time _____ information _____ acceptance _____ capability
6. A change has been handed down from top management. How you implement it is your decision. The change takes effect in one month. It will personally affect everyone in your department. Their acceptance is critical to the success of the change. Your employees are usually not too interested in being involved in making decisions.
_____ time _____ information _____ acceptance _____ capability
7. Your boss called you on the telephone to tell you that someone has requested an order for your department's product with a very short delivery date. She asked you to call her back in 15 minutes with the decision about taking the order. Looking over the work schedule, you realize that it will be very difficult to deliver the order on time. Your employees will have to push hard to make it. They are cooperative, capable, and enjoy being involved in decision making.
_____ time _____ information _____ acceptance _____ capability
8. Top management has decided to make a change that will affect all your employees. You know the employees will be upset because it will cause them hardship. One or two may even quit. The change goes into effect in 30 days. Your employees are very capable.
_____ time _____ information _____ acceptance _____ capability
9. You believe that productivity in your department could be increased. You have thought of some ways that may work, but you are not sure of them. Your employees are very experienced; almost all of them have been in the department longer than you have.
_____ time _____ information _____ acceptance _____ capability
10. A customer has offered you a contract for your product with a quick delivery date. The offer is open for two days. Meeting the contract deadline would require employees to work nights and weekends for six weeks. You cannot require them to work overtime. Filling this profit table contract could help get you the raise you want and feel you deserve. However, if you take the contract and don't deliver on time, it will hurt your chances of getting a big raise. Your employees are very capable.
_____ time _____ information _____ acceptance _____ capability
Objective: To develop your situational supervisory problem-solving and decision-making skills.
AACSB: The primary AACSB learning standard skills developed through this exercise are leadership and analytic skills.
Preparation: You should have completed the 10 situations from the preparation.
Experience: You will try to select the recommended problem-solving and decisionmaking style in the 10 preparation situations.
The instructor reviews Exhibit 13.8 and explains how to use it for selecting the appropriate supervisory style for situation 1 of the exercise preparation.
Break into teams of two or three. Apply the model to situations 2 through 5 as a team. You may change your original answers. It may be helpful to tear the model out of the book so you don't have to keep flipping pages. The instructor goes over the recommended answers
and scoring for situations 2 through 5. Do not continue on to situation 6 until after the instructor goes over the answers to situations 2 through 5.
In the same teams, select problem-solving and decision-making styles for situations 6 through 10. The instructor will go over the recommended answers and scoring.
Conclusion: The instructor may lead a class discussion and/or make concluding remarks.
Application (2-4 minutes): What did I learn from this experience? How will I use this knowledge in the future?
Sharing: Volunteers give their answers to the application section.