Decision Making Processes

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Decision Making Processes

• Chapter 12

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Good Terms to Know

• Organizational Decision-making
• Problem identification
• Problem solution
• Programmed decisions
• Nonprogrammed decisions

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Individual Decision Making

• Two Approaches
• Rational Approach
• When do we use it?

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Rational Approach
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Individual Decision Making

• Bounded Rationality Perspective
• When do we use it?
• Intuitive Decision-making
• Nonprogrammed
• Programmed

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Organizational Decision Making

• What is it?
• Four models
• Management Science Approach
• Carnegie Model
• Incremental Decision Making Process
• Garbage Can Model

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Management Science Approach

• Similar to rational individual approach
• Structured
• Technology

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Carnegie Model

• Coalitions
• Why use coalitions?
• Implications
• Satisfication
• Short-term outlook
• Discussion and bargaining
• Problem identification and implementation
  strategies

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Incremental Decision Process Model

• Focuses on sequence of events from problem
  discovery to solution

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Learning Organizations

• What are they?
• How are they different from other organizations?
• Two Approaches to Decision Making
• Combine Incremental Process Carnegie Models
• Garbage Can Model

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Garbage Can Model

• Extremely organic environments
• Three Causes
• Problematic preferences
• Unclear, poorly understood technology
• Turnover

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Garbage Can Model

• Stream of Events
• Problems
• Potential solutions
• Participants
• Choice opportunities
• Consequences

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Garbage Can Model
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Contingency Decision-Making

• Two dimensions
• Problem consensus
• Technical knowledge about solutions

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Special Decision Circumstances

• High Velocity Environments
• Characteristics
• How to overcome them
• Decision Making Learning
• Escalating Commitment
• Why does it happen?