Transcript DecisionMakingProcesses

Decision Making Processes
Chapter 12
Good Terms to Know
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Organizational Decision-making
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Problem identification
Problem solution
Programmed decisions
Nonprogrammed decisions
Individual Decision Making
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Two Approaches
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Rational Approach
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When do we use it?
Rational Approach
Individual Decision Making
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Bounded Rationality Perspective
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When do we use it?
Intuitive Decision-making
Nonprogrammed=
Programmed=
Organizational Decision Making
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What is it?
Four models
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Management Science Approach
Carnegie Model
Incremental Decision Making Process
Garbage Can Model
Management Science Approach
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Similar to rational individual approach
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Structured
Technology
Carnegie Model
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Coalitions
Why use coalitions?
Implications
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Satisfication
Short-term outlook
Discussion and bargaining
Problem identification and implementation
strategies
Incremental Decision Process Model
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Focuses on sequence of events from
problem discovery to solution
Learning Organizations
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What are they?
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How are they different from other
organizations?
Two Approaches to Decision Making
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Combine Incremental Process & Carnegie
Models
Garbage Can Model
Garbage Can Model
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Extremely organic environments
Three Causes
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Problematic preferences
Unclear, poorly understood technology
Turnover
Garbage Can Model
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Stream of Events
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Problems
Potential solutions
Participants
Choice opportunities
Consequences
Garbage Can Model
Contingency Decision-Making
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Two dimensions
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Problem consensus
Technical knowledge about solutions
Special Decision Circumstances
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High Velocity Environments
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Characteristics
How to overcome them
Decision Making & Learning
Escalating Commitment
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Why does it happen?