Scenario based question - Application 5 1. Even if individuals want to change their behavior, group norms may act as a constraint. By moving all of them to Karratha (WA) create a source of resistance, in terms of the environment, habit, need for security and fear of the unknown. Because routine help to simplify a complex world and promotes a sense of security Having a major change to its company will create threaten to its well-established power relationship within the organization. Beside that, Mary feels that building relationship with her new staff and workmates will require a big investment of time, which could be better spent elsewhere Negotiation and agreement will be adopted. Deal with potential resistance to change is to exchange something of value for a lessening of the resistance. Offering Staff incentives or a specific reward package that will meet their needs. It's said that, Mary feels 60% of her staff be willing to move for the right money and staff hold a strong affinity for her that will not let her down 2. 7(a) Step1. Identify the problem - Mary runs a small company based in Adelaide, which specializes in designing, manufacturing and delivering custom cutting tools to the mining industry. She was approached by West Pilbara Mining Consortium (WPMC) to form a joint venture (JV) that require her and her staff to move to Karratha (WA) Step 2. Identify the decision criteria - Receive $1.5 million from the deal, she will have to take a lower position, move the company to Karratha (WA), Living and working environment in Karratha (WA), Whether current staffs are willing to move with her. Step 3. Weight the decision criteria - If she decided not to take the deal, she may lose all the business from WPMC businesses, which weights 40% of her current business. She find that her company business and profit to be most important factor. Step 4. Develop possible alternatives - Accept the $1.5 million deal or Reject the deal. Step 5. Analyze alternatives - If Mary accepted, she would have problem to move all her staff over that will result her to considering offering incentives to her staff as a negotiation and agreement. If Mary rejects the offer, it will result in lose of almost half of business the company is taking. Therefore, accepting the deals is her most rational choice. Step 6. Select an alternative - Final decision selection is accept the deal from WPMC. Provide staff incentives or reward package that meet their needs 7(b) Cognitive dissonance means any incompatibility between two or more attitudes, or between behavior and attitudes. It refer to a situation involving conflicting attitudes beliefs or behaviors resulting a linkage a between them The staffs move to Karratha (WA) because of the attractive rewards, they likely to experience dissonance, as they dislike working over there. If Mary accept the deal moving to Karratha (WA) and receiving $1.5, she likely to experience dissonance as she have to give up Managing Director position for a Production Manager position Those staff we decided not to moves to Karratha (WA) but who has strong bond relationship, and do not want to let her down. They likely to experience dissonance, as they feel sorry and regretful after Mary left for (WA) 7(c) Making decision base on experience, feelings and accumulated judgment. Intuition decisionmaking means using the sense of guts feeling to assume the result. After considering offering incentives to her staff, she feels that 60% of her staffs will follow her, without actual evidence, rather than by use of conscious thought, reason or rational processes, she is taking a risk if she does so