1. How are decisions made in organizations?
Ch#1
Steps in systematic decision making.
Recognize and define the problem or opportunity.
Identify and analyze alternative courses of action, and estimate their effects on the problem or opportunity.
Choose a preferred course of action.
Implement the preferred course of action.
Evaluate the results and follow up as necessary.
Organizational Behavior: Chapter 17

2. How are decisions made in organizations?
Ch#1
Types of decisions.
Programmed decisions.
Involve routine problems that arise regularly and can be addressed through standard responses.
Nonprogrammed decisions.
Involve nonroutine problems that require solutions specifically tailored to the situation at hand
Organizational Behavior: Chapter 17

3. What are the useful decision making models?
Ch#1
Behavioral decision theory.
Recognizes that human beings operate with:
Cognitive limitations.
Bounded rationality.
The behavioral decision maker:
Faces a problem that is not clearly defined.
Has limited knowledge of possible action alternatives and their consequences.
Chooses a satisfactory alternative.
Organizational Behavior: Chapter 17

4. What are the useful decision making models?
Ch#1
The garbage can model.
A model of decision making that views problems, solutions, participants, and choice situations as mixed together in the “garbage can” of the organization.
In stable settings, behavioral decision theory may be more appropriate.
In dynamic settings, the garbage model may be more appropriate.
Organizational Behavior: Chapter 17

5. How do intuition, judgment, and creativity affect decision making?
Stages in the creative thinking process.
Preparation.
Concentration.
Incubation.
Illumination
Verification.
Ch#1
Organizational Behavior: Chapter 17

6. Decision Making and the Planning Process
Ch#2
The Planning Process
Strategic goals
Strategic plans
Tactical goals
Operational goals
Operational plans
The organization’s mission
The Environmental Context •
Purpose
Premises
Values
Directions
Tactical plans

7. Ch#2 Kinds of Goals By Level
Mission statement is a statement of an organization’s fundamental purpose.
Strategic goals are goals set by and for top management of the organization that address broad, general issues.
Tactical goals are generally set for middle managers; their focus is on how to operationalize actions to strategic goals.

8. Ch#2 Tactical Planning Developing and Executing Tactical Plans
Developing tactical plans •
Recognize and understand
overarching strategic plans
Specify relevant resources and
time issues
Recognize and identify human
resource commitments
Executing tactical plans
Evaluate each course of action
in light of its objective
Obtain and distribute
information and resources
Monitor horizontal and vertical
communication and integration
of all activities/steps
Evaluate ongoing activities

9. TYPES OF DECISIONS (CONT..)
Ch#3
INDIVIDUAL AND GROUP DECISION
ADVANTAGES
INCREASED ACCEPTANCE
EASIER COORDINATION
EASIER COMMUNICATION
MORE INFORMATION PROCESSED
DISADVANTAGES
TAKE LONGER
GROUPS CAN BE INDECISIVE
GROUPS CAN COMPROMISE
GROUPS CAN BE DOMINATED

10. APPROACHES TO GROUP DECISION
DELPHI TECHNIQUE
QUESTIONNAIRES
FEEDBACKS
FINAL SUMMARY IS PREPARED

11. Rationality in Decision Making
Ch#4
Rationality in Decision Making
Rationality is
Attempting to reach some goal that cannot be attained without action
Having clear understanding of alternative courses by which a goal can be reached under existing circumstance and limitations
Having the information and ability to analyze and evaluate alternatives in light of the goal sought.
Having the desire to come to the best solution by selecting the alternative that most effectively satisfies goal achievement

12. Evaluation of Alternatives (Cont)
Ch#4
Quantitative Factors
Factors that can be measured in numerical terms\
e.g. $, time, no of people
Qualitative/ Intangible Factors
factors that are difficult to measure numerically
e.g. risk of technology change, political climate, unforeseen war, transportation strike etc

13. Evaluation of Alternatives (Cont)
Ch#4
Marginal Analysis
to compare additional revenue and the additional cost arising from increasing output
Cost-Effective Analysis
Also known as the Cost-Benefit analysis, seeks the best ratio of benefits and cost

14. Intuition.
The ability to know or recognize quickly and readily the possibilities of a given situation.
Judgmental heuristics.
Simplifying strategies or “rules of thumb” used to make decisions.
Makes it easier to to deal with uncertainty and limited information.
Can lead to systematic errors that affect the quality and/or ethics of decisions.
Confirmation trap.
The tendency to seek confirmation for what is already thought to be true and to not search for disconfirming information.
Hindsight trap.
The tendency to overestimate the degree to which an event that has already taken place could have been predicted.
Ethical issues and decision making.
Ethical dilemma.
A situation in which a person must decide whether or not to do something that, although personally or organizationally beneficial, may be considered unethical and perhaps illegal.
Ethical dilemmas are often associated with:
Risk and uncertainty.
Non routine problem situations.