Org. Behavior Ch. 14

Front 1

Programmed Decisions

Back 1

situations in which specific procedures have been developed for repetitive and routine problems

Front 2

Non Programmed Decisions

Back 2

Decisions required for unique and complex management problems

Front 3

Rational Decision Making

Back 3

decision, a means to achieve some result or solve some problem. rational decision makingis time consuming so it is not always appropriate.

Establish goals --> identify the problem/define the problem --> establish priorities --> consider causes --> develop alternative solutions --> evaluate the atlerative solutions --> solution selection --> implementation --> followup

Front 4

Stage 1 (Rational Decision Making)

Back 4

Establish Specific Goals.
- Prioritize goals and monitor progres
- create the standards aganist which to compare.

Front 5

Stage 2 (Rational Decision Making)

Back 5

Problem Identification and Selection
- usually a discrepancy between desired state and reality.

Front 6

Types of Problems

Back 6

Routine, Crisis, Opportunity

Front 7

Routine Problems

Back 7

Happen regularly

Front 8

Crisis Problems

Back 8

novel, not regular

Front 9

Opportunity

Back 9

what we miss out on when dealing with routine and crisis problems.

Front 10

Why is it hard to identify problems?

Back 10

they are perceptual (individual feelings on problems), we define problems in terms of solutions (i.e. jump to conclusions), identify symptoms as problems

Front 11

Stage 3 (Rational Decision Making)

Back 11

Establishing Priorities- determining the problem.
- significance involves consideration. Urgency, impact, growth tendency

Front 12

Urgency (Decisions)

Back 12

How criticial is this? what is the time pressure?

Front 13

Impact (Decisions)

Back 13

How serious is this problem? effects may be on people, sales, equipment, profitiability, public image.

Front 14

Growth Tendency (decisions)

Back 14

addresses the future considerations

Front 15

Stage 4 (Rational Decision Making)

Back 15

Consideration of causes.
- proper identification of causes helps the decision maker avoid solving the wrong problem.
- symptoms vs. causes are important here.
- the 5 whys

Front 16

Symptoms vs. Causes

Back 16

lead to a better definition of the real problem. Causes can be turned into a new/ better statement.

Front 17

The 5 Whys?

Back 17

directs the problem solver to ask why 5 times after which they will have worked through the outer layer and found the issue.

Front 18

Stage 5 (Rational Decision Making)

Back 18

Development of Alternative Solutions
- make alternative list of solutions and consequences

Front 19

Stage 6 (Rational Decision Making)

Back 19

Evaluation of alternative solutions
- list the pros and cons. certainty, uncertainty, risk important here.

Front 20

Certainty (Rational Decision Making)

Back 20

the decision maker has complete knowledge of the probability of the outcome of each alterative

Front 21

Uncertainty (Rational Decision Making)

Back 21

decision maker has no knowledge of the probability of the outcome of each alterative.

Front 22

Risk (Rational Decision Making)

Back 22

the decision maker has some probable estimate of the outcomes of each alternative.

Front 23

Devils Advocate

Back 23

an appointed critic of proposed group actions whose intent is to uncover underlying issues with the prevailing direction of the group

Front 24

Stage 7 (Rational Decision Making)

Back 24

Solution Selection
- not an isolated act.
- should include implementation and followup.
- situations exist where two objectives cannot achieve desired objective without a positive and negative impact on anotehr objective.
optimized and suboptimized

Front 25

Stage 8 (Rational Decision Making)

Back 25

Implementation
- may be more important than the actual decision
- communicate with subordinates so they buy into the decision

Front 26

Stage 9 (Rational Decision Making)

Back 26

Follow Up
- compare actual results to the desired/ planned outcome

Front 27

Alteratives to Rational Decision Making

Back 27

Bounded rationality approach, intuitive decision making

Front 28

Bounded Rationality Approach

Back 28

this approach assumes that decision making is not perfectly rational but rather one that is fraught with constraints and limitations. thorough but not optimal decisions are thought to be satisifactory and acceptable.

Front 29

Assumptions of Bounded Rationality Approach

Back 29

1. Information is lacking that people need or want.
2. decision makers are not aware of all the possible alternatives and cannot predict consequences.
3. early alternatives are adopted becasue of constraints and limitations.
4. organizational goals constrain decisions
5. conflicting goals of different people

Front 30

Satisfying decision

Back 30

constrained, limited, but good enough. it is acceptable but not optimal.

Front 31

Intuitive Decision Making

Back 31

decisions based on gut feeling or intuition. they use experience, self confidence and self motivation to process information, data and the environment to address a problem or opportunity.
- incorporates personality into decision making.

Front 32

Why does Intuitive Decision Making Occur:

Back 32

1. high uncertainty about problem, goals and decision critera.
2. no history or past experience to draw upon
3. time pressures are intense
4. excessive number of alternatives can be hard to analyze.

Front 33

What impacts decision making?

Back 33

values, propensity for risk, propensity for dissonance, escalation of commitment