Organizational Decision Making

Question 1

types of org decision making

Answer 1

• programmed decisions

- non programmed decisions

Question 2

programmed decisions

Answer 2

• repetitive, well-defined

- rules, standard operating procedures

Question 3

nonprogrammed decisions

Answer 3

• novel, poorly defined

- requires info search, collaboration, experimentation

Question 4

individual decision making

Answer 4

• rational approach

- bounded rationality perspective

Question 5

rational approach

Answer 5

ideal method for how managers should make decisions

Question 6

bounded rationality perspective

Answer 6

how decisions are made under severe time and resource constraints

Question 7

the rational approach steps

Answer 7

1. monitor the decision environment
2. define the decision problem
3. specify the decision objectives
4. diagnose the problem
5. develop alternative solutions
6. evaluate alternatives
7. choose the best alternative
8. implement the chosen alternative

Question 8

Approaches to org decision making

Answer 8

• Management science approach
• Carnegie model
• Incremental decision process model
• Garbage can model

Question 9

Management Science Approach

Answer 9

• use stats to identify relevant variables
• removed human element
• good tool for decisions where variables can be identified and measured

Question 10

Drawback of management science

Answer 10

Quantitative data are not rich and lack tactic knowledge

Question 11

For what kind of problems is management science good for

Answer 11

Military problems

Question 12

Carnegie Model

Answer 12

1. Uncertainty OR conflict
2. Coalition formation
3. Search
4. Satisficing Decision Behaviour

Question 13

Carnegie model: coalition formation

Answer 13

• Hold joint discussion and interpret goals and problems
• Share opinions
• Establish problem priorities
• Obtain social support for problem, solution

Question 14

Carnegie model: search

Answer 14

• Conduct a simple, local search
• Use established procedures if appropriate
• Create a solution if needed

Question 15

Carnegie model: Satisficing decision behaviour

Answer 15

Adopt the first alternative that is acceptable to the coalition

Question 16

What is the learning org

Answer 16

• Combining the Incremental Process and Carnegie Models

- Problem identification -> Problem solution

Question 17

Learning Org: Problem identification

Answer 17

• When problem identification is uncertain, Carnegie model applies
• Political and social process is needed
• Build coalition, seek agreement, and resolve conflict about goals and problem priorities

Question 18

Learning Org: Problem solution

Answer 18

• When problem solution is uncertain, incremental process model applies
• Incremental, trial-and-error process is needed
• Solve big problems in little steps
• Recycle and try again when blocked

Question 19

Garbage Can Model

Answer 19

• Pattern or flow of multiple decisions instead of single decision
• Think of the whole org
• Explain decision making in high uncertainty (organized anarchy)
• Stream of events instead of defined problems and solutions

Question 20

Organized anarchy

Answer 20

Describes an extremely organic org. Do not rely on normal vertical hierarchy or authority or bureaucratic decision rules

Question 21

Stream of events

Answer 21

Decisions are the outcome of independent streams of events within the org. 
Relevant independent streams:
- Problems
- Potential solutions
- Participants
- Choice opportunities

Question 22

Consequences of garbage can model

Answer 22

1. Solutions may be proposed when problems do not exist
2. Choices are made without solving problems
3. Problems may persist without being solved
4. A few problems are solved