Professional Documents
Culture Documents
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TYPES OF DECISIONS!
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Programmed Decisions!
- Repetitive and well defined and procedures exist to solve problems"
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ex. Whether to change the old copying machine"
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INDIVIDUAL DECISION MAKING!
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RATIONAL APPROACH!
- Ideal method for how managers should make decisions"
- Involves and 8 step decision making "
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BOUNDED RATIONALITY PERSPECTIVE!
- Limit on how rational managers can be - time and resource constraints (Non
programmed decisions) "
- Constraints and tradeoffs:!
Personal constraints: Such as decision style, work pressure, desire for prestige, or
simple feelings of insecurity - constrain the search for alternatives or the
acceptability of an alternative."
Role of intuition: Experience and judgement rather than logic. Managers make
decisions based on what they sense to be right rather than on what they can
document with hard data."
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ORGANIZATIONAL DECISION MAKING!
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- Good tool for decisions where variables can be identified and measured "
- A drawback of management science is that quantitive data are not rich and lack tacit
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knowledge "
Managers have to sense informal clues that indicate problems."
In these situations, the role of management science is to supplement manager
decision making "
CARNEGIE MODEL!
- Involves many managers and a final choice based on a coalition among those
managers. "
- coalition: managers who agree about organizational goals and problem priorities. "
- Reasons why coalition is used:"
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Organizational goals are often ambiguous. and operative goals of the departments
are often inconsistent."
Individual managers intend to be rational but functions with human cognitive
limitations and other constraints. "
- Satisficing: organizations accept satisfactory rathe than maximum level of performance "
- Problemistic search: Managers look around immediate environment for a solution to
quickly resolve a problem. "
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- Development Phase: solution is shaped to solve the problem in the identification stage"
Search - procedures may be used to seek out alternatives"
Design - Happens when the problem is novel so that previous experience has no
value. "
- Selection Phase: solution is chosen!
Judgement - when final choice is up to a single decision maker"
Bargaining - selection involves a group of people"
Analysis - evaluated on a more systematic basis"
Authorization - when the decision is passed on to the hierarchy!
- Dynamic Factors!
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ORGANIZATIONAL DECISIONS AND CHANGE!
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throughout."
- Organized anarchy: Experiences tremendous uncertainty; an extremely organic
organizations. Happens when:"
1. Problem preferences "
2. Unclear, poorly understood technology"
3. turnover"
- Streams of events: Not seen as a streamline of steps that begin with a problem and ends
with a solution."
1. Problems"
2. Potential solution"
3. Participants!
4. Choice of opportunity!
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CONTINGENCY DECISION-MAKING FRAMEWORK!
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SPECIAL DECISION CIRCUMSTANCES !
High-velocity environments!
- Characterized by rapid competitive and technological changes"
- Learn from decision mistakes "
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Cognitive Biases: serve as errors in judgement that all human are print to and that typically
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- Encourages dissent and diversity: Some groups assign a devils advocate, who has the
role of challenging the assumptions and assertions made by the group.