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Decision Making
Decision Making
Chapter 17
Decision Making
Study questions.
– How are decisions made in organizations?
– What are the useful decision making models?
– How do intuition, judgment, and creativity
affect decision making?
– How can the decision-making process be
managed?
– How do technology, culture, and ethics
influence decision making?
Organizational Behavior: Chapter 17 2
How are decisions made
in organizations?
Decision making.
– Certain environments.
– Risk environments.
– Uncertain environments.
Certain environments.
– Exist when information is sufficient to predict
the results of each alternative in advance of
implementation.
– Certainty is the ideal problem solving and
decision making environment.
Types of decisions.
– Programmed decisions.
• Involve routine problems that arise regularly and
can be addressed through standard responses.
– Nonprogrammed decisions.
• Involve nonroutine problems that require solutions
specifically tailored to the situation at hand
Intuition.
– The ability to know or recognize quickly and
readily the possibilities of a given situation.
– A key element of decision making under risk
and uncertainty.
Creativity factors.
– Creativity in decision making involves the
development of unique and novel responses to
problems and opportunities.
– Creativity is especially important in a dynamic
environment full of nonroutine problems.