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Decision Making Processes

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Decision Making Processes Chapter 12 Good Terms to Know Organizational Decision-making Problem identification Problem solution Programmed decisions Nonprogrammed ... – PowerPoint PPT presentation

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Title: Decision Making Processes


1
Decision Making Processes
  • Chapter 12

2
Good Terms to Know
  • Organizational Decision-making
  • Problem identification
  • Problem solution
  • Programmed decisions
  • Nonprogrammed decisions

3
Individual Decision Making
  • Two Approaches
  • Rational Approach
  • When do we use it?

4
Rational Approach
5
Individual Decision Making
  • Bounded Rationality Perspective
  • When do we use it?
  • Intuitive Decision-making
  • Nonprogrammed
  • Programmed

6
Organizational Decision Making
  • What is it?
  • Four models
  • Management Science Approach
  • Carnegie Model
  • Incremental Decision Making Process
  • Garbage Can Model

7
Management Science Approach
  • Similar to rational individual approach
  • Structured
  • Technology

8
Carnegie Model
  • Coalitions
  • Why use coalitions?
  • Implications
  • Satisfication
  • Short-term outlook
  • Discussion and bargaining
  • Problem identification and implementation
    strategies

9
Incremental Decision Process Model
  • Focuses on sequence of events from problem
    discovery to solution

10
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11
Learning Organizations
  • What are they?
  • How are they different from other organizations?
  • Two Approaches to Decision Making
  • Combine Incremental Process Carnegie Models
  • Garbage Can Model

12
Garbage Can Model
  • Extremely organic environments
  • Three Causes
  • Problematic preferences
  • Unclear, poorly understood technology
  • Turnover

13
Garbage Can Model
  • Stream of Events
  • Problems
  • Potential solutions
  • Participants
  • Choice opportunities
  • Consequences

14
Garbage Can Model
15
Contingency Decision-Making
  • Two dimensions
  • Problem consensus
  • Technical knowledge about solutions

16
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17
Special Decision Circumstances
  • High Velocity Environments
  • Characteristics
  • How to overcome them
  • Decision Making Learning
  • Escalating Commitment
  • Why does it happen?
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