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Decision Making in Organizations

Decision Making in Organizations. Chapter 10. Learning Objectives. Identify the steps in the analytical model of decision making and distinguish between the various types of decisions people make.

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Decision Making in Organizations

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  1. Decision Makingin Organizations Chapter 10

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

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

  4. Decision Making The process of making choices from among several alternatives.

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

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

  7. Organizational Influences • Political Pressures • Time Pressure

  8. Rational-Economic Model • Maximize Chance of Attaining Goals • Consider All Possible Alternatives • Select Optimal Solution • Normative (Prescriptive) Approach

  9. Administrative Model • Bounds to Rationality • Satisficing Decisions • Bounded Discretion • Descriptive (Proscriptive) Approach

  10. Individual Decision Imperfections Framing Effects

  11. Individual Decision Biases • Implicit Favorite • Hindsight

  12. Group Creative Problem Solving Brainstorming

  13. Training Individuals to Improve Group Performance • Hypervigilance • Unconflicted Adherence • Unconflicted Change • Defensive Avoidance

  14. Effective DecisionsComputer-based Approaches • Electronic Meeting Systems • Group Decision Support

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