Decision Making

Processes
Organizational Decision-making
◦ Problem identification
◦ Problem solution
◦ Programmed decisions
◦ Non-programmed decisions
Two Approaches
◦ Rational Approach
 When do we use it?

Individual Decision Making

Rational Approach
Bounded Rationality Perspective
◦ When do we use it?
◦ Intuitive Decision-making

Nonprogrammed=
Programmed=

Individual Decision Making

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

Organizational Decision Making

Similar to rational individual approach
◦ Structured

Technology

Management Science Approach

Coalitions
Why use coalitions?
Implications
◦ Satisfication
◦ Short-term outlook
◦ Discussion and bargaining

Problem identification and implementation

strategies

Carnegie Model
Focuses on sequence of events from
problem discovery to solution

Incremental Decision Process

Model
What are they?
◦ How are they different from other
organizations?

Two Approaches to Decision Making

◦ Combine Incremental Process & Carnegie
Models
◦ Garbage Can Model

Learning Organizations
Extremely organic environments
Three Causes
◦ Problematic preferences
◦ Unclear, poorly understood technology
◦ Turnover

Garbage Can Model

Stream of Events
◦ Problems
◦ Potential solutions
◦ Participants
◦ Choice opportunities
Consequences

Garbage Can Model

Two dimensions
◦ Problem consensus
◦ Technical knowledge about solutions

Contingency Decision-Making