Programmed

Nonprogrammed
Types Entrepreneurship

Classical
Decision Entrepreneur
Models Making ship Intrapreneurs
Administrative

Decision Making,
Learning, Creativity, and
Entrepreneurship

Organizational
learning
Decision- Organizational
Making Learning and
6 STEPS Process Creativity
Learning organization

Group
Decision Creativity
Making
CONS
PROS
 Problems are routine & repetitive

The conditions are highly certain

Programmed
Techniques:
+ reliance on long-established rules
+ reliance on past experience
Types
Problems are unusual & novel

The conditions are highly

unexpected, uncertain/risk Nonprogrammed
Techniques:
+ Rely on creativity
Decision
+ Use intuition, reasoned judgments Making

how decisions should be made.

Decision Making,
Learning, Creativity, and
List of all alternatives and consequences Classical Entrepreneurship
→ Rank → Select to make the optimum
decision

Models
how decisions are made.
Three important concepts:
+ Bounded rationality: Decisions are limited
by people’s cognitive abilities. Administrative
+ Incomplete information: risk and
uncertainty, ambiguity, and time
constraints
+ Tend to satisfice
→ Decision making is risky.
Step 1: Recognize the Need for a Decision

Decision Making,
Learning, Creativity, and
Step 2: Generate Alternatives Entrepreneurship

Step 3: Assess Alternatives

Decision-
Making
Process
Step 4: Choose among Alternatives

Step 5: Implement the Chosen Alternative

Step 6: Learn from Feedback

 Decision Making,
Learning, Creativity, and
Entrepreneurship

Group
Decision
Making
PROS CONS

- Takes longer to agree to the same

- More knowledge/i4 solution
- Can be undermined by biases
- More alternatives
→ Pressure
- Increased acceptance → One major source of poor decision

making is groupthink.

 Decision Making,
Learning, Creativity, and
Entrepreneurship

Managers seek to improve

employees’ desire and ability to
Organizational
understand and manage the
learning
Organizational organization and its task
Learning and environment.
Creativity

Creativity Learning organization

Managers try to improve the people’s

A decision maker’s ability to discover original
ability to behave creatively to
and novel ideas that lead to feasible alternative
courses of action. maximize organizational learning.
Promoting Individual Creativity
Promoting Group Creativity (brainstorming,
nominal group technique, Delphi technique)
 the mobilization of resources to take
advantage of an opportunity to provide
customers with new or improved goods and
services.

Entrepreneurship

Entrepreneur Intrapreneurs
ship

work inside organizations and manage the

product development process. → leads to
organizational learning and innovation.
Decision Making,
Learning, Creativity, and
Entrepreneurship