Creativity in Decision-Making

Creativity in Decision-Making

• Creativity is defined as the generation of a novel idea or unique approach to solving a problem or taking advantage of an opportunity.
• Lonnie Johnson invented the Super Soaker water gun while working on an alternative refrigeration system.
• Creativity is a valuable personal asset that is often underutilized.
• Organizations can benefit from harnessing the creative potential of their workforce.

Personal Creativity Drivers

• Personal creativity is influenced by task expertise, task motivation, and creativity skills.
• Task expertise means that creative decisions are more likely when the person or team has considerable knowledge, skill, and experience.
• Task motivation means that creative people often work hard to resolve a problem or exploit an opportunity.
• Creative people tend to: work with high energy, identify and plan around problems, accept responsibility, are resourceful, use systematic and intuitive thinking, think "outside of the box" (divergent thinking), synthesize and find correct answers (convergent thinking), look at diverse ways to solve problems (lateral thinking), transfer learning, question assumptions.

Situational Creativity Drivers

• Individual creativity alone is insufficient for organizational innovation.
• Organizational culture plays a key role in developing creative products like the Apple iPhone.
• RCA executives failed to capitalize on the invention of the LCD because they were too invested in color TV tubes.
• Situational creativity drivers include group creativity skills, management support, and organizational culture.
• Supportive management and organizational cultures give group creativity skills a chance to flourish by providing resources ($$, tech, space) and valuing creativity through rewards and peer expectations.
• Innovation spaces (e.g., the "Cave" at Fisher-Price) can help foster freewheeling brainstorming sessions.

Individual Versus Group Decision-Making

• Groups and teams play an important role as sources of creativity in decision-making.
• Managers should use group decision-making where appropriate to encourage this.
• The manager's choice to use or not use group decision-making can have a turning point on the results achieved.
• Management scholars promote that the best managers and team leaders are dynamic with their use of individual v. group decisions, and use the appropriate method respective to the specific scenario to ensure a solution of good quality and timeliness.

Advantages of Group Decisions

• Group decisions can be valuable when time and circumstances permits.
• Group decisions bring more information, knowledge, and expertise to problem-solving.
• Expanding number of action alternatives leads to less tunnel vision with more options considered.
• Group decisions increase understanding and acceptance among members.
• Group decisions also increase commitment to implementing the decision.

Disadvantages of Group Decisions

• When making team decisions there may be social pressure to conform, people may feel intimidated.
• Minority domination may occur, where a small group forces a decision.
• Team decisions typically take longer than individual decisions.

When Group Decisions Work Best

• Individual lacks expertise or information.
• Problems are unclear and hard to define.
• Acceptance by others is needed for effective implementation.
• Time is sufficient for group involvement.

Ethical Decision-Making

• The "ethics double-check" involves asking yourself: "How would I feel if my family found out about this decision?" and "How would I feel if this decision were published?".
• The Josephson Institute model adds a third question: "What would the person I know with the strongest character do?".
• Ethical decision-making helps ensure that the ethical aspects of the problem are properly considered and can have a potential for a better decision.
• Ethicist Gerald Cavanaugh suggests managers can have confidence in ethics for decision-making when: the decision satisfies all stakeholders (Utility), respects the rights of everyone (Rights), consistent with the canons of justice (Justice), and consistent with my responsibility to care (Caring).