Discuss the difficulty of making a fully rational decision

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In group of 4, make a decision to illustrate the decision-making process. The decision-making exercise presented here is adapted from Hall, D.T., Bowen, D.D., Lewicki, R.J., & Hall, F.S. (1975), Experiences in Management and Organizational Behavior, Chicago: St. Clair Press.

Ajax Electric Light is a nonunion manufacturing company that produces small light components including a type often used in automobiles. Two years ago the company was able to add a large automobile manufacturer to its list of customers, thus increasing production and personnel. At about the same time, the company was threatened with an equal employment opportunity suit that resulted in its instituting an affirmative action plan. Under this plan, the company has been recruiting additional women and minority members into its workforce.

Due to major economic shifts, the management at Ajax is anticipating a decrease in orders from the auto firm. In preparation for this, each department head has been asked to rank employees in the event that Ajax has to lay off personnel. Below you will find biographical data for seven people employed in one of the wiring department sections. Assuming that you were in charge, how would you rank the seven? Rank them according to the order in which they should be laid off -- that is the person ranked number one is to be laid off first, etc.

• Burt Greene. White male, age 45, married, 4 children, 5 years with company, reputed to be an alcoholic, bad work record.

• Nan Nushka. White female, age 26, married, no children, husband has steady job, 6 months with company, hired after affirmative action plan went into effect, average work record to date, saving to buy a house.

• Joe Jefferson. White male, age 24, married, no children but wife is pregnant, 3 years with the company, going to college at night, erratic performance record attributed to work/study conflicts.

• Johnny Jones. Black male, age 20, unmarried, 1 year with company, high performance ratings, reputed to be shy--a "loner," wants to start his own business someday.

• Livonia Long. Black female, age 49, widow, 3 grown children, 2 years with company, steady work record, but takes little initiative.

• Ward Watt. White male, age 30, recently divorced, 1 child, 3 years with company, good worker.

• Rosa Sanchez. Hispanic woman, age 45, 6 children, husband disabled 1 year ago, trying to help support family, 3 months with company, and no performance appraisal data available.

After students have decided on their rankings in groups, a brief will follow. Compare the rankings and have groups discuss the criteria they used to make their decisions. Discuss the difficulty of making a fully "rational" decision in the face of incomplete information, unclear criteria, and different value systems. Compare various group decision-making styles and discuss the effect of these styles on the group decision and the satisfaction of group members.

Reference no: EM131001223

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