Organizational Decision Making Flashcards
types of org decision making
- programmed decisions
- non programmed decisions
programmed decisions
- repetitive, well-defined
- rules, standard operating procedures
nonprogrammed decisions
- novel, poorly defined
- requires info search, collaboration, experimentation
individual decision making
- rational approach
- bounded rationality perspective
rational approach
ideal method for how managers should make decisions
bounded rationality perspective
how decisions are made under severe time and resource constraints
the rational approach steps
- monitor the decision environment
- define the decision problem
- specify the decision objectives
- diagnose the problem
- develop alternative solutions
- evaluate alternatives
- choose the best alternative
- implement the chosen alternative
Approaches to org decision making
- Management science approach
- Carnegie model
- Incremental decision process model
- Garbage can model
Management Science Approach
- use stats to identify relevant variables
- removed human element
- good tool for decisions where variables can be identified and measured
Drawback of management science
Quantitative data are not rich and lack tactic knowledge
For what kind of problems is management science good for
Military problems
Carnegie Model
- Uncertainty OR conflict
- Coalition formation
- Search
- Satisficing Decision Behaviour
Carnegie model: coalition formation
- Hold joint discussion and interpret goals and problems
- Share opinions
- Establish problem priorities
- Obtain social support for problem, solution
Carnegie model: search
- Conduct a simple, local search
- Use established procedures if appropriate
- Create a solution if needed
Carnegie model: Satisficing decision behaviour
Adopt the first alternative that is acceptable to the coalition
What is the learning org
- Combining the Incremental Process and Carnegie Models
- Problem identification -> Problem solution
Learning Org: Problem identification
- 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
Learning Org: Problem solution
- 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
Garbage Can Model
- 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
Organized anarchy
Describes an extremely organic org. Do not rely on normal vertical hierarchy or authority or bureaucratic decision rules
Stream of events
Decisions are the outcome of independent streams of events within the org. Relevant independent streams: - Problems - Potential solutions - Participants - Choice opportunities
Consequences of garbage can model
- Solutions may be proposed when problems do not exist
- Choices are made without solving problems
- Problems may persist without being solved
- A few problems are solved
