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 Consequences 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?