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Flashcards in Organizational Decision Making Deck (22):
1

types of org decision making

- programmed decisions
- non programmed decisions

2

programmed decisions

- repetitive, well-defined
- rules, standard operating procedures

3

nonprogrammed decisions

- novel, poorly defined
- requires info search, collaboration, experimentation

4

individual decision making

- rational approach
- bounded rationality perspective

5

rational approach

ideal method for how managers should make decisions

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bounded rationality perspective

how decisions are made under severe time and resource constraints

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the rational approach steps

1. monitor the decision environment
2. define the decision problem
3. specify the decision objectives
4. diagnose the problem
5. develop alternative solutions
6. evaluate alternatives
7. choose the best alternative
8. implement the chosen alternative

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Approaches to org decision making

- Management science approach
- Carnegie model
- Incremental decision process model
- Garbage can model

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Management Science Approach

- use stats to identify relevant variables
- removed human element
- good tool for decisions where variables can be identified and measured

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Drawback of management science

Quantitative data are not rich and lack tactic knowledge

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For what kind of problems is management science good for

Military problems

12

Carnegie Model

1. Uncertainty OR conflict
2. Coalition formation
3. Search
4. Satisficing Decision Behaviour

13

Carnegie model: coalition formation

- Hold joint discussion and interpret goals and problems
- Share opinions
- Establish problem priorities
- Obtain social support for problem, solution

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Carnegie model: search

- Conduct a simple, local search
- Use established procedures if appropriate
- Create a solution if needed

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Carnegie model: Satisficing decision behaviour

Adopt the first alternative that is acceptable to the coalition

16

What is the learning org

- Combining the Incremental Process and Carnegie Models
- Problem identification -> Problem solution

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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

18

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

19

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

20

Organized anarchy

Describes an extremely organic org. Do not rely on normal vertical hierarchy or authority or bureaucratic decision rules

21

Stream of events

Decisions are the outcome of independent streams of events within the org.
Relevant independent streams:
- Problems
- Potential solutions
- Participants
- Choice opportunities

22

Consequences of garbage can model

1. Solutions may be proposed when problems do not exist
2. Choices are made without solving problems
3. Problems may persist without being solved
4. A few problems are solved