Final answer:
Mary should evaluate the options to address her team's underperformance by analyzing the transaction and conformity costs associated with each. She should consider the evidence that supports the efficacy of training programs and weigh the benefits of group decision-making against its potentially higher costs. Proactivity within the organizational culture should guide her decision.
Step-by-step explanation:
Mary, a team leader, noticed that some team members' performance has been declining. This is a complex problem that requires careful consideration of various options to address underperformance which could include firing, training, or transferring employees. The next step Mary should take in rational decision-making involves analyzing the advantages and disadvantages of each option. She should consider the transaction costs and conformity costs associated with each choice.
Transaction costs refer to the time, effort, and resources required to manage coordination, while conformity costs are the loss of diversity in ideas and potential decrease in motivation when decisions are imposed rather than collectively agreed upon. Moreover, Mary should also evaluate the effectiveness of organizational training, as evidence shows that well-designed training can improve employee performance regarding their immediate response, learning outcomes, behavior, and overall productivity.
Mary might also consider group decision-making as this method could lead to more satisfactory solutions even though it may involve higher transaction costs. Finally, Mary should remember the importance of action within the culture of the organization. Taking proactive steps to solve the problem, like offering training or open communication channels to discuss the issue, might resolve the performance issues without resorting to more drastic measures.