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?