1. Organizational Decision Making35
Organizational Decision Making

2. Organizational Decision Making
Not on individual basis
Problem identification and solution involves many departments, multiple view points, and even other organizations
Many factors affect organizational decision making, such as; internal structure, stability or instability of external environment

3. Organizational Decision Making
Four types of organizational decision making processes:
Management science approach
Carnegie model
Incremental decision process model
Garbage can model

4. Management Science Approach
Analogous to rational decision making at individual level
Management science came into being during World War II (maths, Physics, OR concepts applied to help administer and manage military issues)
Example of torpedoes sinking a vessel – how many different variables like speed, time, distance, wind speed, shell size, curvatures etc. will be considered

5. Management Science Approach
Analysts then jumped in to give a head-start to management sciences, radars replaced humans as targeting
This approach then diffused into other institutions and corporations and business schools where techniques were studied and elaborated

6. Management Science Approach
Some examples where management science approach has solved organizational problems:
Finding right spot for an office/factory
Test marketing a new product
Drilling for oil
Distribution of goods and now telecom services
Scheduling of airline employees, ambulance technicians, telephone operators,

7. Advantages
Can accurately and quickly solve complex problems involving many variables
Computer and software technology is further augmenting the use of management science approach

8. Failures
Credit rating scoring by banks on the expense of human judgment
Quantitative data are not rich and do not convey tacit knowledge
It is the man behind the gun