Recent studies indicate the presence of a positive correlation between manufacturing productivity and production worker involvement in the plant floor decision making processes. A popular name applied to this type of group decision making process is Quality Circles. This case examines the potential for the successful introduction of this approach to decision making in American manufacturing organizations, the implications such an introduction would have with respect to downsizing, and the implications for the staff function in American manufacturing organizations.
Decision making in organizations has been described as a process of behavior with the economic model (or total rationality) at one extreme, and with the social model (or complete irrationality) at the other extreme (Kimberly and Rottman, 1987). This description implies that only irrational decision making accords human values precedence over economic values. In the organizational environments of the early 1990s, some middle ground between these extremes must be found, for it is evident that neither set of values can be ignored. In many organizations, managers have been confronted with the tasks of making severe, undesirable, and unpleasant cuts of personnel and services in a hasty manner, because, in part, they failed to heed economic values in earlier decisions. Similarly, organizations have often been forced to retract decisions, and to act in confusing manners, in chaotic situations, because, in part, they failed to heed human values in reaching earlier decisions. A better approach to decision making is obviously required by many organizations.
The practice of decision making in American organizations is far from standard. Decision making practices range from the outmoded directive decision making behavior to a full embracing of the concept of participative decision making. The most effective decision making behavior for organizations will include participa...