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?