Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Skip to main content
SpringerLink
Log in

Individual Decision-Making in Organizations: Contribution of Uncertainty and Controversy in China

  • Published:
Group Decision and Negotiation Aims and scope Submit manuscript

Abstract

Uncertainty has been thought to challenge the cognitive capabilities of managers and thereby undermine their decision-making abilities. However, managers who experience uncertainty in that they are unsure of the adequacy of their own position may open-mindedly consult with their colleagues in the organization before they make the decision. A sample of 122 Chinese mainland managers described and rated a critical incident when they tried to make a decision. Regression analyses indicated that to the extent that managers initially felt uncertain about the solution they engaged in constructive controversy, i.e. the open-minded discussion for mutual benefit, which, in turn, led to effective decision-making. Cooperative goals further moderated the association of uncertainty with cooperative goals such that the positive association was stronger with less cooperative goals. These results underline the positive role of uncertainty in solving difficult problems, especially under competitive goals.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aiken LS, West SG (1991) Multiple regression: testing and interpreting interactions. Sage, Newbury Park, London

  • Alper S, Tjosvold D, Law SA (1998) Interdependence and controversy in group decision making: antecedents to effective self-managing teams. Org Behav Hum Decis Process 74: 33–52

    Article  Google Scholar 

  • Argyris C (1993) Knowledge for action: a guide to overcoming barriers to organizational change. Jossey-Bass, San Francisco

    Google Scholar 

  • Arkes HR, Ayton P (1999) The sunk cost and concode effects: are humans less rational than lower animals?. Psychol Bull 125: 591–600

    Article  Google Scholar 

  • Arnold JA, Arad S, Rhoades JA, Dragsow F (2000) The empowering leadership questionnaire: the construction and validation of a new scale for measuring leader behaviors. J Org Behav 21: 249–269

    Article  Google Scholar 

  • Barnes HH Jr. (1984) Cognitive biases and their impact on strategic planning. Strateg Manag J 5: 129–137

    Article  Google Scholar 

  • Berry AJ (2000) Leadership in a new millennium: the challenge of the ‘risk society’. Leadersh Org Dev J 21: 5–12

    Article  Google Scholar 

  • Bitner MJ, Booms BH, Tetreault MS (1990) The service encounter: diagnosing. favorable and unfavorable incident. J Mark 54: 77–84

    Google Scholar 

  • Bono JE, Anderson MH (2005) The advice and influence networks of transformational leaders. J Appl Psychol 90: 1306–1314

    Article  Google Scholar 

  • Brannen J (1988) The study of sensitive subjects. Sociol Rev 36(3): 552–563

    Article  Google Scholar 

  • Brislin RW (1970) Back-translation for cross-cultural research. J Cross Cult Psychol 1: 185–216

    Article  Google Scholar 

  • Brockhaus RH Sr. (1980) Risk-taking propensity of entrepreneurs. Acad Manag J 23: 509–520

    Article  Google Scholar 

  • Bukszar E (2003) Does overconfidence lead to poor decisions? A comparison of decision making and judgment under uncertainty. J Bus Manag 9: 33–43

    Google Scholar 

  • Busenitz LW (1999) Entrepreneurial risk and strategic decision making. J Appl Behav Sci 35: 325–340

    Article  Google Scholar 

  • Cohen MD, March JB (1974) Leadership and ambiguity. McGraw-Hill, New York

    Google Scholar 

  • Cyert RM, March JG (1963) A behavioral theory of the firm. Prentice Hall, Englewood Cliffs

    Google Scholar 

  • David DD, Harless DW (1996) Group vs. individual performance in a price-searching experiment. Org Behav Hum Decis Process 67: 215–227

    Google Scholar 

  • De Dreu CKW, Carnevale PJD (2003) Motivational bases of information processing and strategy in conflict and negotiation. In: Zanna MP (ed) Advances in experimental social psychology, vol. 35. Academic Press, New York, pp 235–291

    Chapter  Google Scholar 

  • De Dreu, CKW, Gelfand, MJ (eds) (2008) The psychology of conflict and conflict management in organizations. Lawrence Erlbaum Associates, New York

    Google Scholar 

  • Deutsch M (1973) The resolution of conflict. Yale University Press, New Haven

    Google Scholar 

  • Duhaime I, Schwenk CR (1985) Conjectures on cognitive simplification in acquisition and divestment decisions making. Acad Manag Rev 10: 287–295

    Google Scholar 

  • Earley PC (1997) Doing an about-face: social motivation and cross-cultural currents. In: Earley PC, Erez M (eds) New perspective on international industrial/organizational psychology. Jossey-Bass, San Diego

    Google Scholar 

  • Edmondson AC (1999) Psychological safety and learning behavior in work teams. Adm Sci Q 44: 350–383

    Article  Google Scholar 

  • Erez M, Somech A (1996) Is group productivity loss the rule or the exception? Effects of culture and group-based motivation. Acad Manag J 39: 1513–1537

    Article  Google Scholar 

  • Flanagan JC (1954) The critical incident technique. Psychol Bull 51(4): 327–358

    Article  Google Scholar 

  • Fong CPS, Wyer RS (2003) Cultural, social and emotional determinants of decisions under uncertainty. Org Behav Hum Decis Process 90: 304–322

    Article  Google Scholar 

  • Hall ET (1976) Beyond culture. Doubleday, New York

    Google Scholar 

  • Ho DYF (1994) Face dynamics: from conceptualization to measurement. In: Ting-Toomey L (ed) The challenge of facework. State University of New York Press, Albany, pp 269–305

    Google Scholar 

  • Hogan R, Curphy GJ, Hogan J (1994) What we know about leadership. Am Psychol 49: 493–504

    Article  Google Scholar 

  • Hogarth RM, Makridakis S (1981) Forecasting and planning: an evaluation. Manag Sci 27: 115–138

    Article  Google Scholar 

  • Houghton SM, Simon M, Goldberg CB (2000) No safety in numbers: persistence of biases and their effects on team risk perception and team decision making. Group Org Manag 25: 325–353

    Article  Google Scholar 

  • House RJ, Hanges PJ, Javidan M, Dorfman PW, Gupta V (2004) Culture, leadership and organizations: the GLOBE study of 62 societies. Sage, Thousand Oaks

    Google Scholar 

  • Huang X, Vande Vliert E, Vander Vegt G (2005) Breaking the silence culture: stimulation of participation and employee opinion withholding cross-nationally. Manag Org Rev 1: 459–482

    Article  Google Scholar 

  • Janis IL (1972) Victims of groupthink. Houghton Mifflin, Boston

    Google Scholar 

  • Johnson DW, Maruyama G, Johnson RT, Nelson D, Skon S (1981) Effects of cooperative, competitive, and goal structures on achievement: a meta-analysis. Psychol Bull 89: 47–62

    Article  Google Scholar 

  • Kahneman D, Klein G (2010) Conditions for intuitive expertise: a failure to disagree. Am Psychol 64: 515–526

    Article  Google Scholar 

  • Kelley HH, Thibaut JW (1969) Group problem solving. In: Lindzey G, Aronson E (eds) Handbook of social psychology, vol. 3. Addison-Wesley, Reading, pp 1–105

    Google Scholar 

  • Kirkbride PS, Tang SFY, Westwood RI (1991) Chinese conflict preferences and negotiating behaviour: cultural and psychological influences. Org Stud 12: 365–386

    Article  Google Scholar 

  • Laughlin PR, Shupe EI (1996) Intergroup collective induction. Org Behav Hum Decis Process 68: 44–57

    Article  Google Scholar 

  • Leung K, Koch PT, Lu L (2002) A dualistic model of harmony and is implications for conflict management in Asia. Asia Pac J Manag 19: 201–220

    Article  Google Scholar 

  • Levine M (1971) Hypothesis theory and nonlearning despite ideal S-R reinforcement contingencies. Psychol Rev 78: 130–140

    Article  Google Scholar 

  • Li H, Li J (2009) Top management team conflict and entrepreneurial strategy making in China. Asia Pac J Manag 26: 263–283

    Article  Google Scholar 

  • MacLeod WB, Pingle M (2005) Aspiration uncertainty: its impact on decision performance and process. J Econ Behav Org 56: 617–629

    Article  Google Scholar 

  • Maier NRF (1970) Problem-solving and creativity in individuals and groups. Brooks/Cole, Belmont

    Google Scholar 

  • March JG, Simon HA (1958) Organizations. Wiley, New York

    Google Scholar 

  • McNamara G, Bromiley P (1997) Decision making in an organizational setting: cognitive and organizational influences on risk assessment in commercial lending. Acad Manag J 40: 1063–1088

    Article  Google Scholar 

  • McNamara G, Bromiley P (1999) Risk and return in organizational decision making. Acad Manag J 42: 330–339

    Article  Google Scholar 

  • Mitchel R, Nicholas S, Boyle B (2009) The role of openness to cognitive diversity and group processes in knowledge creation. Small Group Res 40: 535–554

    Article  Google Scholar 

  • Pfeffer J (1981) Power in organizations. Pitman, Boston

    Google Scholar 

  • Plous S (1995) A comparison of strategies for reducing interval overconfidence in group judgments. J Appl Psychol 80: 443–454

    Article  Google Scholar 

  • Porter ME (1980) Competitive strategy: techniques for analyzing industries and competitors. Free Press, New York

    Google Scholar 

  • Pruitt DG (1961) Informational requirements in making decisions. Am J Psychol 74: 433–439

    Article  Google Scholar 

  • Redding SG, Ng M (1982) The role of “face” in the organizational perceptions of Chinese managers. Org Stud 3: 201–219

    Google Scholar 

  • Reynolds LA, Hrudey SE (2006) Managing uncertainty in environmental decision-making: the risky business of establishing a relationship between science and law. Int J Risk Assess Manag 6(1–3): 1–249

    Article  Google Scholar 

  • Schaubroeck J, Lam S, Cha S (2007) Embracing transformational leadership: team values and the impact of leader behavior on team performance. J Appl Psychol 92(4): 1020–1030

    Article  Google Scholar 

  • Schwartz N (1999) Self-reports. Am Psychol 54: 93–105

    Article  Google Scholar 

  • Schwartz SH (1992) Universals in the content and structure of values: theoretical advances and empirical tests in 20 countries. Adv Exp Soc Psychol 25: 1–65

    Article  Google Scholar 

  • Schwenk CR (1984) Cognitive simplification processes in strategic decision-making. Strateg Manag J 5: 111–128

    Article  Google Scholar 

  • Seo MG, Barrett LF (2007) Being emotional during decision making—Good or bad? An empirical investigation. Acad Manag J 50: 923–940

    Article  Google Scholar 

  • Sheppard JA (1993) Productivity loss in performance groups: a motivation analysis. Psychol Bull 113: 67–81

    Article  Google Scholar 

  • Simon HA (1976) Administrative behavior. Free Press, New York

    Google Scholar 

  • Slovic P, Fischhoff B, Lichtenstein S (1977) Behavioral decision theory. Ann Rev Psychol 28: 1–39

    Article  Google Scholar 

  • Smith JF, Kida T (1991) Heuristcs and biases: expertise and task realism in auditing. Psychol Bull 109: 472–489

    Article  Google Scholar 

  • Snell RS, Tjosvold D, Su FS (2006) Resolving ethical conflicts at work through cooperative goals and constructive controversy in the People’s Republic of China. Asia Pac J Manag 23: 319–343

    Article  Google Scholar 

  • Somech A (2006) The effects of leadership style and team process on performance and innovation in functionally heterogeneous teams. J Manag 32: 132–157

    Article  Google Scholar 

  • Spector PE (1992) A consideration of the validity and meaning of self-report measures of job conditions. In: Cooper CL, Robertson IT (eds) International review of industrial and organizational psychology. Wiley, Chichester, pp 123–151

    Google Scholar 

  • Spector PE, Brannick MT (1995) The nature and effects of method variance in organizational research. In: Cooper CL, Robertson IT (eds) International review of industrial and organizational psychology. Wiley, Chichester, pp 249–274

    Google Scholar 

  • Stanne MB, Johnson DW, Johnson RT (1999) Does competition enhance or inhibit motor performance: a meta-analysis. Psychol Bull 125: 133–154

    Article  Google Scholar 

  • Staw B (1984) Organizational behavior: a review and reformulation of the field’s outcome variables. Ann Rev Psychol 35: 627–666

    Article  Google Scholar 

  • Steiner ID (1972) Group process and productivity. Academic Press, New York

    Google Scholar 

  • Tjosvold D (1998) The cooperative and competitive goal approach to conflict: accomplishments and challenges. Appl Psychol Int Rev 47: 285–313

    Article  Google Scholar 

  • Tjosvold D (2008) Controversy for management education: developing committed, open-minded researchers. Exemplary contributions. Acad Manag Learn Educ 7: 73–85

    Article  Google Scholar 

  • Tjosvold D, Law KS, Sun H (2003) Collectivistic and individualistic values: their effects on group dynamics and productivity in China. Group Decis Negotiat 12: 243–263

    Article  Google Scholar 

  • Tjosvold D, Nibler R, Wan P (2001) Motivation for conflict among Chinese: effects of other’s expertise and confidence on choosing disagreement. J Soc Psychol 141: 353–363

    Article  Google Scholar 

  • Tjosvold D, Sun H (2003) Openness among Chinese in conflict: effects of direct discussion and warmth on integrated decision making. J Appl Soc Psychol 33: 1878–1897

    Article  Google Scholar 

  • Tjosvold D, Wedley WC, Field RHG (1986) Constructive controversy, the Vroom-Yetton model, and managerial decision making. J Occup Behav 7: 125–138

    Article  Google Scholar 

  • Tjosvold D, Wu P, Chen YF (2010) The effects of collectivistic and individualistic values on conflict and decision making: an experiment in China. J Appl Soc Psychol 40: 2904–2926

    Article  Google Scholar 

  • Triandis HC (1990) Cross-cultural studies of individualism and collectivism. In: Berman J (ed) Cross-cultural perspectives: Nebraska symposium on motivation, vol. 37. University of Nebraska Press, Lincoln, pp 41–133

    Google Scholar 

  • Triandis HC, McCusker C, Hui CH (1990) Multimethod probes of individualism and collectivism. J Pers Soc Psychol 59: 1006–1020

    Article  Google Scholar 

  • Tse DK, Francis J, Walls J (1994) Cultural differences in conducting intra- and inter-cultural negotiations: a Sino-Canadian comparison. J Int Bus Stud 24: 537–555

    Article  Google Scholar 

  • Tversky A, Kahneman D (1974) Judgement under uncertainty: heuristics and biases. Science 185: 1124–1131

    Article  Google Scholar 

  • Van Knippenberg D (2003) Intergroup relations in organizations. In: West M, Tjosvold D, Smith KG (ed) International handbook of organizational teamwork and cooperative working. Wiley, Chichester

    Google Scholar 

  • Van Knippenberg D, Van Knippenberg B, van Dijk E (2000) Who takes the lead in risky decision making? Effects of group members’ risk preference and phototypicality. Org Behav Hum Decis Process 83: 213–234

    Article  Google Scholar 

  • Walker S, Truly EL et al (1992) The critical incident technique: philosophical and methodological contributions to marketing research. In: Allen CT (ed) Proceedings of the American marketing association’s winter educator’s conference. American Marketing Association, Chicago, pp 270–275

    Google Scholar 

  • Wang H, Law KS, Hackett RD, Wang D, Chen ZX (2005) Leader-member exchange as a mediator of e relationship between transformational leadership and followers’ performance and organizational citizenship. Acad Manag J 48: 420–432

    Article  Google Scholar 

  • Weick K (1979) Cognitive processes in organizations. In: Staw BM (ed) Research in organizational behavior, vol. 1. JAI Press, Greenwich, pp 41–74

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management, Lingnan University, Tuen Mun, Hong Kong

    Dean Tjosvold & Nancy Yifeng Chen

  2. Department of Management, Michigan State University, East Lansing, MI, USA

    Ann Chunyan Peng

  3. Department of Finance, Shanghai University of Finance and Economics, Shanghai, People’s Republic of China

    Sofia Su Fang

Authors
  1. Dean Tjosvold
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Ann Chunyan Peng
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Nancy Yifeng Chen
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Sofia Su Fang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Nancy Yifeng Chen.

Additional information

Authors would like to appreciate the able assistance of the research assistants at the Shanghai University of Finance and Economics.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Tjosvold, D., Peng, A.C., Chen, N.Y. et al. Individual Decision-Making in Organizations: Contribution of Uncertainty and Controversy in China. Group Decis Negot 22, 801–821 (2013). https://doi.org/10.1007/s10726-012-9294-6

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10726-012-9294-6

Keywords

Search

Navigation