1. Decision Making in Organizations
Chapter 10

2. Learning Objectives
Identify the steps in the analytical model of decision making and distinguish between the various types of decisions people make.
Describe different individual decision styles and the various organizational and cultural factors that influence the decision-making process.
Distinguish between three approaches to how decisions are made: the rational-economic model, the administrative model, and image theory.

3. Learning Objectives
Identify the various factors that lead people to make imperfect decisions.
Compare the conditions under which groups make superior decisions than individuals and when individuals make superior decisions than groups.
Describe various traditional techniques and high-tech techniques that can be used to enhance the quality of individual and group decisions.

4. Decision Making
The process of making choices from among several alternatives.

5. Risk Probabilities Reducing Uncertainty Objective Subjective
Establish Linkages With Other Organizations
Information

6. Group Influences Potential Benefits Potential Problems
Pooling of Resources
Specialization of Labor
Greater Acceptance
Potential Problems
Wasted Time
Disruptive Conflict
Intimidation by Group Leaders

7. Organizational Influences
Political Pressures
Time Pressure

8. Rational-Economic Model
Maximize Chance of Attaining Goals
Consider All Possible Alternatives
Select Optimal Solution
Normative (Prescriptive) Approach

9. Administrative Model Bounds to Rationality Satisficing Decisions
Bounded Discretion
Descriptive (Proscriptive) Approach

10. Individual Decision Imperfections
Framing Effects

11. Individual Decision Biases
Implicit Favorite
Hindsight

12. Group Creative Problem Solving
Brainstorming

13. Training Individuals to Improve Group Performance
Hypervigilance
Unconflicted Adherence
Unconflicted Change
Defensive Avoidance

14. Effective Decisions Computer-based Approaches
Electronic Meeting Systems
Group Decision Support