Decision Making Processes

1. Decision Making Processes Chapter 12

2. Good Terms to Know • Organizational Decision-making • Problem identification • Problem solution • Programmed decisions • Nonprogrammed decisions

3. Individual Decision Making • Two Approaches • Rational Approach • When do we use it?

4. Rational Approach

5. Individual Decision Making • Bounded Rationality Perspective • When do we use it? • Intuitive Decision-making • Nonprogrammed= • Programmed=

6. Organizational Decision Making • What is it? • Four models • Management Science Approach • Carnegie Model • Incremental Decision Making Process • Garbage Can Model

7. Management Science Approach • Similar to rational individual approach • Structured • Technology

8. Carnegie Model • Coalitions • Why use coalitions? • Implications • Satisfication • Short-term outlook • Discussion and bargaining • Problem identification and implementation strategies

9. Incremental Decision Process Model • Focuses on sequence of events from problem discovery to solution

11. 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

12. Garbage Can Model • Extremely organic environments • Three Causes • Problematic preferences • Unclear, poorly understood technology • Turnover

13. Garbage Can Model • Stream of Events • Problems • Potential solutions • Participants • Choice opportunities • Consequences

14. Garbage Can Model

15. Contingency Decision-Making • Two dimensions • Problem consensus • Technical knowledge about solutions

17. Special Decision Circumstances • High Velocity Environments • Characteristics • How to overcome them • Decision Making & Learning • Escalating Commitment • Why does it happen?