Decision%20Making%20in%20Organizations

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Decision Makingin Organizations

• Chapter 10

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Learning Objectives

1. Identify the steps in the analytical model of
   decision making and distinguish between the
   various types of decisions people make.
2. Describe different individual decision styles and
   the various organizational and cultural factors
   that influence the decision-making process.
3. Distinguish between three approaches to how
   decisions are made the rational-economic model,
   the administrative model, and image theory.

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Learning Objectives

1. Identify the various factors that lead people to
   make imperfect decisions.
2. Compare the conditions under which groups make
   superior decisions than individuals and when
   individuals make superior decisions than groups.
3. Describe various traditional techniques and
   high-tech techniques that can be used to enhance
   the quality of individual and group decisions.

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Decision Making

• The process of making choices from among several
  alternatives.

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Risk

• Probabilities
• Objective
• Subjective
• Reducing Uncertainty
• Establish Linkages With Other Organizations
• Information

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Group Influences

• Potential Benefits
• Pooling of Resources
• Specialization of Labor
• Greater Acceptance
• Potential Problems
• Wasted Time
• Disruptive Conflict
• Intimidation by Group Leaders

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Organizational Influences

• Political Pressures
• Time Pressure

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Rational-Economic Model

• Maximize Chance of Attaining Goals
• Consider All Possible Alternatives
• Select Optimal Solution
• Normative (Prescriptive) Approach

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Administrative Model

• Bounds to Rationality
• Satisficing Decisions
• Bounded Discretion
• Descriptive (Proscriptive) Approach

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Individual Decision Imperfections

• Framing Effects

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Individual Decision Biases

• Implicit Favorite
• Hindsight

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Group Creative Problem Solving

• Brainstorming

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Training Individuals to Improve Group Performance

• Hypervigilance
• Unconflicted Adherence
• Unconflicted Change
• Defensive Avoidance

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Effective DecisionsComputer-based Approaches

• Electronic Meeting Systems
• Group Decision Support