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

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

Garbage Can Model

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?