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21 Cards in this Set

  • Front
  • Back
Decision-Making
The process of identifying and solving problems




Two major stages of decision making
Problem Identification



Problem Solution

Programmed decisions (4)
rational model



made before




clear procedures exist




alternatives can be clearly specified

Rational Choice Decision Making Cycle
Monitor decision environment

Define decision problem


Specify decision objectives


Diagnose the problem


Develop alternative solutions


Evaluate the alternatives


Choose best alternative


Implement chosen alternative

Nonprogrammed Decisions (4)
Unusual



Poorly defined




Difficult to define the problem




Hard to ascertain if a solution will solve the problem

Bounded Rationality
Pay attention to different things at different times



Limited time, info, resources




Organizational and personal constraints




Decision-makers therefore satisfice

Satisfice
Choose a final solution that is 'good enough'
Four types of organizational decision-making processes
Management science

Carnegie model


Incremental decision process


Garbage can model

Management Science (4)
The analog to the rational method

Original application was in the military


Useful when the variables can be identified and measured


Cannot convey informal cues or account for tacit knowledge

Carnegie Model
Uncertainty and conflict

Lead to Coalition formation


Search and create a solution


Satisficing (adopt first alternative that is acceptable to the coalition

Incremental Decision Process Model
Identification Phase:

Recognition & Diagnosis




Development Phase:


Search & Screen, Design




Selection Phase:


Judgment, Bargaining, Analysis, Evaluation, Authorization




During all points during the stages, interrupts can occur



Garbage Can Model
Organizations function as organized anarchies where problematic preferences, unclear cause-and-effect relationships, and turnover are prevalent
Decisions are outcomes made of intersections of (4)...
Problems

Potential Solutions


Participants


Choice Opportunities

Consequences of Garbage Can Process
Solutions may be proposed when problems don't exist

Choices are made without solving problems


Problems may persist without being solved


A few problems are solved

Two contingencies a decision approach depends on
Problem consensus and technical knowledge
Problem consensus
The agreement among managers about the nature of a problem and about which goals and outcomes to pursue
Technical knowledge
Understanding and agreement about how to solve problems and reach organizational goals
Certain knowledge, certain consensus...
Management science
Certain knowledge, uncertain problem consensus...
Carnegie Model
Uncertain knowledge, certain problem consensus...
Incremental decision process
Uncertain knowledge, uncertain problem consensus
Carnegie & incremental can lead to garbage can