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21 Cards in this Set

  • Front
  • Back
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)

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

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)...

Potential Solutions


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