Post on 15-Jan-2016
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Decision Making ProcessesDecision Making Processes
Chapter 12Chapter 12
Good Terms to KnowGood Terms to Know
Organizational Decision-makingOrganizational Decision-making Problem identificationProblem identification Problem solutionProblem solution Programmed decisionsProgrammed decisions Nonprogrammed decisionsNonprogrammed decisions
Individual Decision MakingIndividual Decision Making
Two ApproachesTwo Approaches Rational ApproachRational Approach
When do we use it?When do we use it?
Rational ApproachRational Approach
Individual Decision MakingIndividual Decision Making
Bounded Rationality PerspectiveBounded Rationality Perspective When do we use it?When do we use it? Intuitive Decision-makingIntuitive Decision-making
Nonprogrammed=Nonprogrammed= Programmed= Programmed=
Organizational Decision Organizational Decision MakingMaking
What is it?What is it? Four modelsFour models
Management Science ApproachManagement Science Approach Carnegie ModelCarnegie Model Incremental Decision Making ProcessIncremental Decision Making Process Garbage Can ModelGarbage Can Model
Management Science Management Science ApproachApproach
Similar to rational individual Similar to rational individual approachapproach StructuredStructured
TechnologyTechnology
Carnegie ModelCarnegie Model
CoalitionsCoalitions Why use coalitions?Why use coalitions? ImplicationsImplications
SatisficationSatisfication Short-term outlookShort-term outlook Discussion and bargainingDiscussion and bargaining
Problem identification and implementation Problem identification and implementation strategiesstrategies
Incremental Decision Process Incremental Decision Process ModelModel
Focuses on sequence of events from Focuses on sequence of events from problem discovery to solutionproblem discovery to solution
Learning OrganizationsLearning Organizations
What are they?What are they? How are they different from other How are they different from other
organizations?organizations?
Two Approaches to Decision MakingTwo Approaches to Decision Making Combine Incremental Process & Combine Incremental Process &
Carnegie ModelsCarnegie Models Garbage Can ModelGarbage Can Model
Garbage Can ModelGarbage Can Model
Extremely organic environmentsExtremely organic environments Three CausesThree Causes
Problematic preferencesProblematic preferences Unclear, poorly understood technologyUnclear, poorly understood technology TurnoverTurnover
Garbage Can ModelGarbage Can Model
Stream of EventsStream of Events ProblemsProblems Potential solutionsPotential solutions ParticipantsParticipants Choice opportunities Choice opportunities
ConsequencesConsequences
Garbage Can ModelGarbage Can Model
Contingency Decision-Contingency Decision-MakingMaking
Two dimensionsTwo dimensions Problem consensusProblem consensus Technical knowledge about solutionsTechnical knowledge about solutions
Special Decision Special Decision CircumstancesCircumstances
High Velocity EnvironmentsHigh Velocity Environments CharacteristicsCharacteristics How to overcome themHow to overcome them
Decision Making & LearningDecision Making & Learning Escalating CommitmentEscalating Commitment
Why does it happen?Why does it happen?