ESSAY Chapter 10
1.What are the elements of the decision making process?ANS:The decisional process is multiple step in nature and begins with (1) problem finding and recognition,or the perception that something is wrong and requires correction. Next, (2) an objective is formulatedfollowed by (3) gathering information and data analysis so that problem parameters are known andunderstood. (4) Alternatives are generated and evaluated so that (5) a course of action (or option) can be selected and (6) implemented. Once implemented, the solution (7) must be monitored (throughfeedback) and (8) adjustments made as follow up and control are exercised.2.Compare and contrast the bounded rationality and garbage can models of decision making.ANS:Simon's bounded rationality model contains four assumptions. (1) Managers select the first alternativethat is satisfactory and meets minimum requirements; (2) managers attempt to simplify the world asmuch as possible; (3) managers can make decisions without determining all options; and (4) managersmake decisions by rules of thumb or heuristics. In short, managers satisfice or select the option that isgood enough. The garbage can model suggests that problem solving and decision making are randomand unsystematic processes because uncertainty is frequently so great that a random choice may be asgood as a scientifically or rationally generated decision. The organization (decision situation) isviewed as a garbage can in which resources, participants, choices, and alternatives are randomlyfloating. If a good decision is made, it is simply accidental.3.What individual and organization influences affect creativity?ANS:Abstract and divergent thinking, imagery and associational abilities, and dreams and unconscious processes contribute to creativity. Also, persons who have independent judgment, tolerance for ambiguity, intrinsic motivation, intuition, and self-confidence tend to be creative. Organizationally,supportive supervisors and peers, flexible structure, and participative decision making tend toencourage creativity. Providing the opportunity for failure and rewards can also benefit creativity.4.A large municipality (250,000 citizens) is trying to decide where to locate a new communityrecreational center. The problem is relatively unstructured. There is a decision quality requirement thatis significant. Not one person has sufficient information and many community groups may desire to provide input. Opportunity for conflict exists between groups and neighborhoods competing for thecenter. If one person (city manager) makes the decision, many people may not be strongly committedto making the center successful. Would an individual or group be most useful for this decision? Please justify your answer.ANS:Group. Advantages of a group decision include (1) more knowledge and information through the pooling of group member resources, (2) increased acceptance and commitment to the decision, (3)greater understanding of the decision. The time for a group decision may however be longer. Given theunstructured and uncertain nature of this decision, a group would be more effective.
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