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Strategic Analysis and Choice: Decision Making
Strategic Analysis and Choice: Decision Making
Choice
Decision Making
Dec. 3, 2007 Haitham Hassan
Decision Making
A simple definition of a decision is
that it is the, ‘selection of a
proposed course of action’.
Decisions involve choices.
Decision making is about choosing
between alternatives.
individuals make decisions that
will make them feel better off.
Dec. 3, 2007 Haitham Hassan
Decision Making
Non-programmed
-are made infrequently.
- These tend to be the strategic
or policy decisions of an
organisation which tend to be
made occasionally with a large
gap of time between them
Rational
Bounded Rational
Evolutionary
Political
Garbage Can
Lindblom
Rather than thinking about decision
making as a process of continuous and
smooth logical steps, as in the rational
model, the decision process is
disjointed.
Decision makers don’t always have the
necessary information or knowledge or
the time to make a decision now. They
will return to that part of the problem
later.
Decisions are, therefore, made in
stages – a bit here and a bit there. The
process, therefore,
Dec. 3, 2007
appears
Haitham Hassan
discontinuous with stops and starts.
Decision models
classification
Evolutionary
Henry Mintzberg concluded that there
are many feedback loops within the
rational decision making process.
This means that a number of the
different stages in the rational model
might be revisited and reassessed as
new information becomes available
before a final decision is taken.
H. Mintzberg, D. Raisinghani, and A. Therot (1976), ‘The Structure of ‘unstructured’ decision processes’, Administrative
Science Quarterly, 21(2),June, pp.246/75.
Dec. 3, 2007 Haitham Hassan
Logical Incrementalism
Lindblom and
Quinn
Is a slight marginal variation. founded
within the bounded rationality model.
Decision makers follow the logic of
making choices and changes a small
step (increment) at a time. This reduces
the risks that would be involved in a
radical change, i.e. a major departure
from what is currently being done. The
decision path for logical incrementalism
evolves through small marginal
changes.
Dec. 3, 2007 Haitham Hassan
Decision models
classification
Political