Intelligence Intelligence Intelligence

1. Who should 1. Who should 1. Who should

participate? participate? participate?

2. What is the
Who should be Vroom Jago provides
problem
bl / involved in making a methodology to
decision? the decision or help us figure this
solving the problem? out
3. What is the
criteria?
2/17/2008 1 2/17/2008 2 2/17/2008 3

Quality or Quality or
rationality rationality
Does the decision
Decision influence employee
Acceptance
Effectiveness performance?
Will our employees
commit to the
Does the decision help
decision?
to attain organizational
goals?

1
 Other Objectives Other Objectives
Quality or
rationality Personnel Personnel
development Development
Acceptance
F t
Foster
Efficiency Learning
Environment
How much time do
we have?

Vroom Jago: Individual Decision: Group Decision:

Individual or Group Decision? Impacts one person/subordinate/department Impacts all or a group of subordinates

2
Vroom Jago:
Participation Styles
Participation Styles Decide
AI
Individual Alone Individual
Human capital Problem Get Info & Problem
AII
equation Decide Alone

Consult CI
Situational variables Individually

Decide
GI
Decision trees Together

Delegate DI

Human Capital
Participation Styles
Equation
Decide
AI
Group Alone Group Motivation of
Problem Get Info &
AII
Problem Time (MT)
Decide Alone

Consult
Individually
CI Motivation of
Consult
Development
As a Group CII
(MD)
Reach
GII
Consensus

3
 How important is the technical quality of How important is subordinate
Situational Variables theSituational
decision? Variables SituationaltoVariables
commitment the decision?

Quality Requirement QR Quality Requirement QR Quality Requirement

Commitment Requirement Commitment Requirement CR Commitment Requirement
Leader’s Information Leader’s Information Leader’s Information
Problem Structure Problem Structure Problem Structure
Commitment Probability Commitment Probability Commitment Probability
Goal Congruence Goal Congruence Goal Congruence
Subordinate Conflict Subordinate Conflict Subordinate Conflict
Subordinate Information Subordinate Information Subordinate Information

Do you, as the leader, have sufficient Is the problem well structured? If you make the decision, will your
Situational
information to Variables
make high quality Situational Variables Situationalbe
subordinates Variables
committed to it?
decision?

QR Quality Requirement QR Quality Requirement QR Quality Requirement

CR Commitment Requirement CR Commitment Requirement CR Commitment Requirement
LI Leader’s Information LI Leader’s Information LI Leader’s Information
Problem Structure ST Problem Structure ST Problem Structure
Commitment Probability Commitment Probability CP Commitment Probability
Goal Congruence Goal Congruence Goal Congruence
Subordinate Conflict Subordinate Conflict Subordinate Conflict
Subordinate Information Subordinate Information Subordinate Information

4
Do your subordinates share the Is conflict among subordinates over Do subordinates have sufficient
Situational Variables
organizational goals to be achieved by Situational
preferred Variables
solutions likely? Situational
information to Variables
make high quality
solving the problem? decision?

QR Quality Requirement QR Quality Requirement QR Quality Requirement

CR Commitment Requirement CR Commitment Requirement CR Commitment Requirement
LI Leader’s Information LI Leader’s Information LI Leader’s Information
ST Problem Structure ST Problem Structure ST Problem Structure
CP Commitment Probability CP Commitment Probability CP Commitment Probability
GC Goal Congruence GC Goal Congruence GC Goal Congruence
Subordinate Conflict CO Subordinate Conflict SC Subordinate Conflict
Subordinate Information Subordinate Information SI Subordinate Information

Decision Trees Decision Tree

Situational Variables
Time Driven / Group Project
YES AI
CP YES YES
NO GC SI GII
NO NO
QR Quality Requirement YES YES CII
CP NO YES
Commitment Requirement
ON
NO
CR NO GC SI GII
LI ST YES
NO NO
LI Leader’s Information HIGH
YES YES CO YES
NO
CR CP GC
CII
ST Problem Structure HIGH YES NO
NO AII
CP Commitment Probability QR
LOW YES GC NO
YES CO CI
NO ST NO YES
GC Goal Congruence LI CII
CO Subordinate Conflict LOW YES
AI
SI Subordinate Information
NO YES
CR CP GII
YES NO

5
Vroom - Jago Model
Coast Guard Cutter Case

Are Yes/No
quest o s
questions
adequate?

A more sophisticated approach

uses equations instead of decision
trees.

Overall Effectiveness

8.00 5.88
7.00 4.31 5.12 4.56
6.00 3.74
5.00
4 00
4.00
3.00
2.00
1.00
S1
0.00
AI AII CI CII GII

Participation Styles
Case 1: R&D Projects Decision Case 1: R&D Projects Decision Case 2: Client Complaint Decision

6
 Client Complaint Coast Guard Cutter Decision

Overall Effectiveness
Overall Effectiveness
8.00 7.00 6.95 6.75 6.35 5.50
8.00 7.00
7.00 4.25 3.75
2.13 1.75 6.00
6.00
5.00 0.38 5.00
4.00 4.00
3.00 3.00
2.00 2.00
1.00 1.00
S1 S1
0.00 0.00
AI AII CI GI DI AI AII CI CII GII

Participation Styles
Participation Styles
Case 2: Client Complaint Decision Case 3: Coast Guard Cutter Decision Case 3: Coast Guard Cutter Decision

Hiring Decision
Overall Effectiveness

4 2.92 2.87
3 1.50 1.25
2
1 -3.02
0
-1
-2
-3
-4 S1
AI AII CI GI DI

Participation Styles

Case 4: Hiring Decision Case 4: Hiring Decision Case 5: New Machines Decision

7
 New Machines Decision
Vroom-Jago Model Vroom-Jago Model
Overall Effectiveness Guidelines Guidelines

8.00
7.00 5.75 5.50 To improve decision quality: To improve decision quality:
6.00
5.00 3.36
4.00 2.82 If you lack required info and
3.00 1.19
2.00
problem is unstructured
1.00
S1
0.00
AI AII CI CII GII
Avoid autocratic styles
Participation Styles
Case 5: New Machines Decision

Vroom-Jago Model Vroom-Jago Model Vroom-Jago Model

Guidelines Guidelines Guidelines

To improve decision quality: To improve decision quality: To improve decision

commitment:
If subordinates don’t share If you don’t have enough
organizational goals and/or info & subordinates share
commitment not required organizational goals (even if
there is conflict)
Avoid group styles
Use group styles

8
 Vroom-Jago Model Vroom-Jago Model Vroom-Jago Model
Guidelines Guidelines Guidelines

To improve decision To reduce decision costs To reduce decision costs

commitment: (time): (time):

When there’s conflict If there are severe time

amongst subordinates & constraints & unstructured
they won’t support decision problem

Use consensus (CII/Gll) Use Autocratic style (AI)

Vroom-Jago Model
Guidelines

To reduce decision costs

(time):

If geographically dispersed
or there’s lots of conflict
amongst subordinates

Avoid consensus (CII & GII)