Organization Decision-Making Flashcards
organizational decisions are __or __
programmed or nonprogrammed
programmed decisions
repetitive, routine, follow policies/rules
nonprogrammed
non-repetitive, complex, need unique answers, rely on judgment and skills
Rational model
Harrison 1975
AKA classical model
AKA rational econ model
Assumes all decision makers choose the optimal alternative after identifying and evaluating every alternative
Bounded Rationality Model
Simon 1957
rational decision making is limited by organizational and individual factors such as time restriction/limited info.
Satisfice instead of optimize
Organizational Process Model
Cyert & March 1963
decisions are made by individuals or groups, are constrained by agency routines and operating
groupthink (Janis)
when people are deeply involved in a group