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?