1

Decision Making

2
Opening
Case Study

Problem identification – is where information about environmental

and organisational conditionals are monitored to determine if
performance is satisfactory and to diagnose the causes of the
shortcomings.

Problem Solution – is where alternative courses of action are

considered, and one alternative is selected and implemented

3
 Types of decisions

Programmed Non-programmed

Examples Examples

4
5
 Time pressures

Large number of factors

Ill-defined problem

Satisficing Lacks
versus Complete
Optimising Information

Bounded
Rationality
Cannot Cannot
Assess All Weight
Alternatives All Criteria

6
Bounded
Rationality

Personal Decision
Constraints Choice

Social
Constraints

7
Example

8
9
OrganisationalDecision-Making
Techniques

10
11
12
13
 Uncertainty Conflict
(Info limited, (Mgrs diverse
manages have Goals, opinions,
many constraints) Values & exp

Coalition Formation (Hold joint

discussions and
interpret goals &
problems

Conduct Search
simple local
Adopt the first
search –
alternative that is
create a
acceptable to the
solution
coalition
Satisficing Decision

14
15
16
17
The learning organisation

Carnegie Incremental

18
 Problem Problem
Identification Solution

garbage can model

19
20
21
22