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