Decision Making in Organization
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The document discusses three models of decision making: 1) the rational decision-making model which assumes complete information and the highest payoff option can be identified, 2) the bounded rationality model which seeks the best solution given limited available information as people can only process a limited amount of data, and 3) the intuition model where quick decisions are made based on past experiences but relying solely on intuition is not recommended and should be supplemented with evidence and judgment.
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2) Decisions can involve certainty, risk, or uncertainty and bounded rationality limits full rationality.
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Decision Making 1
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Decision making, Importance of
Decision-Making, Characteristics of
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Decision-Making, Types/ categories of Problems and Decisions, TYPES OF BUSINESS DECISIONS, Open decision making System, Decision Making Environment, The Classical Model of decision making, Decision making process, Decision Making Style
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Decision making is an important daily process for businesses and their management. There are several areas where management needs to make decisions including human resources, production, marketing, client services, and technology. Effective decisions help businesses adapt to changes in the market and gain competitive advantages, while poor decisions can lead to losses or businesses failing to adapt like Blockbuster, Blackberry, Kodak, and Sears. The steps of good decision making involve identifying the problem, gathering information, judging alternatives based on goals, brainstorming choices, selecting the best option, executing the decision as a plan, and evaluating the results.
Decision making process
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CONTENTS ON:
decision making process,
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decision making situations,
decision making models,
decision making styles,
participation in decision making.
Decision making ppt
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Managerial decision making involves cutting off undesirable alternatives to select the best option. It is a complex process that requires analyzing problems, developing alternative solutions, and selecting and implementing a desired alternative. There are different models of decision making, including the classical, administrative, and political models, that take different approaches depending on factors like the level of certainty, risk, and organizational goals. Effective decision making follows a process of defining the problem, gathering information, developing and analyzing alternatives, selecting the best option, and evaluating outcomes.
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The document outlines four models of decision making:
The rational-economic model assumes decision makers are completely rational and seek to maximize payoffs by considering all information and alternatives.
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This document discusses decision making and the various processes involved. It defines decision making as selecting a course of action from available alternatives. It notes that decision making involves rationality and being constrained by limited rationality of the human mind. The document outlines the steps in decision making, including developing alternatives, evaluating them both quantitatively and qualitatively, using marginal analysis and cost-effectiveness analysis to select an alternative. It also discusses using experience, experimentation, research and analysis, and programmed versus non-programmed decisions. The conclusion recommends that effective decision making involves elements of risk and reward, and empowering people at all levels through training and support.
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Decision making
the action or process of making important decisions.
"the system encourages workers' participation in corporate decision-making"
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The document discusses various aspects of management decision-making including what management is, the importance of decision-making in management, characteristics of decision-making, approaches to decision-making including normative and descriptive analyses, models of decision-making including classical, administrative and political models, techniques for improving decision-making, and guidelines for making decisions more effective. It also provides a practical test on decision-making skills.
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This document discusses decision making and the decision making process. It defines decision making as selecting between alternative choices or courses of action. The decision making process involves recognizing the nature of the decision, identifying alternatives, choosing the most effective alternative, and implementing it. Effective decision making aims to optimize factors like profits while minimizing expenses. Decision making can occur under conditions of certainty, risk, or uncertainty depending on what is known about the alternatives and risks involved. Most organizational decisions are made under uncertainty with limited information.
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The document outlines key aspects of decision making including:
1) The rational decision making process involves 8 steps: identifying the problem, developing alternatives, analyzing alternatives, criteria development, weighting criteria, selecting the best alternative, implementing, and evaluating.
2) Decisions can involve certainty, risk, or uncertainty and bounded rationality limits full rationality.
3) Group decisions have advantages like more complete information but disadvantages like time costs and pressure to conform.
4) Techniques like brainstorming and nominal groups can improve group decision making effectiveness.
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The document discusses various concepts and models related to decision making. It covers rational and intuitive decision making styles, individual versus group decision making, and reasons why decisions may fail. It also provides guidelines for effective decision making, such as gathering facts, considering alternatives, flexibility, and follow through. Decision making involves judgment calls between alternatives that are rarely clear-cut and require balancing incomplete information.
6 steps decision making model
The document summarizes different aspects of decision making including rational models, how decisions are actually made, organizational constraints, and ethics. It discusses how rational models assume complete information and optimization but real decisions involve bounded rationality where people satisfice. Decisions are influenced by heuristics, biases, and the need to appear competent. Organizations further constrain decisions through evaluation and reward systems, time pressures, and historical precedents. Ethics in decision making can focus on utilitarianism, rights, or justice but each approach has tradeoffs for productivity and individual interests.
Decision Making 1
The rational decision making method has some pros and cons. The pros are that it is the best model to identify and verify problems, provides the best solutions, makes decisions unambiguous, and reduces complexity. However, it also has cons in that the process can be expensive, time consuming, and cause delays in decision making. Intuitive decision making relies on experience, feelings, and judgment. It works best when rapid decisions are needed, factors are changing rapidly or ambiguous. However, intuition can also be flawed and biased. There are ways to improve intuitive decision making such as using a structured process and reflecting on decisions.
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The document discusses various aspects of decision making in businesses. It defines strategic, tactical and operational decisions and provides examples. It also discusses tools that can help in decision making such as SWOT analysis, structured decision making models and use of IT. Constraints on decision making such as availability of resources and external factors are also highlighted.
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This document discusses various aspects of decision making including:
1. It defines decision making as choosing the best alternative to reach objectives and notes managers make many decisions daily.
2. It describes rational decision making as a 8-step process including identifying the problem, criteria, alternatives, and evaluating decisions.
3. Decision making can be rational but is often bounded rationality due to limits in information processing. Intuition and satisficing may also influence decisions.
4. Decisions vary in structure from well-defined to ambiguous problems influencing whether a programmed or nonprogrammed approach is taken.
Decision theory approach in management
The document outlines a six step decision theory approach to making complex management decisions: 1) Create a constructive environment by defining objectives, agreeing on the process, and involving stakeholders. 2) Generate good alternatives through techniques like brainstorming and reframing. 3) Explore the alternatives by analyzing risks, implications, and validating feasibility. 4) Choose the best alternative using tools like grid analysis and decision trees. 5) Check the decision intuitively and using techniques like blindspot analysis. 6) Communicate the decision and take action by explaining risks and benefits to gain support.
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The document discusses types of organizational decisions, including programmed and non-programmed decisions. It also discusses approaches to decision making, including the rational approach which is ideal and bounded rationality which considers constraints. Additionally, it notes that most decisions are not made logically by a single individual and that conflict can arise over problems.
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CONTENTS ON:
decision making process,
decision making categories,
decision making situations,
decision making models,
decision making styles,
participation in decision making.
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The document discusses decision making and factors that contribute to effective decision making. It begins with a case study about choosing whether to divert a train to save most children playing on the tracks, which would require sacrificing a single child. It then discusses definitions of decision making, factors that affect decisions like perception, risk, and resources. It provides tips for decision making processes and discusses learning from both helpful and hindering factors of a decision to relocate a software company development center. The key learnings were to learn from others' experiences, be careful with big decisions, understand that costs are relative, and provide a convenient workplace.
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Managerial decision making involves cutting off undesirable alternatives to select the best option. It is a complex process that requires analyzing problems, developing alternative solutions, and selecting and implementing a desired alternative. There are different models of decision making, including the classical, administrative, and political models, that take different approaches depending on factors like the level of certainty, risk, and organizational goals. Effective decision making follows a process of defining the problem, gathering information, developing and analyzing alternatives, selecting the best option, and evaluating outcomes.
Decision models
The document outlines four models of decision making:
The rational-economic model assumes decision makers are completely rational and seek to maximize payoffs by considering all information and alternatives.
The administrative model recognizes limitations in rationality and information, so decision makers use heuristics and satisfice rather than optimize.
The implicit favorite model finds decision makers have implicit favorites before evaluating alternatives, then bias criteria to justify pre-existing choices.
The political model views decision making as negotiation among stakeholders with different agendas, using bargaining, persuasion and information control to sway outcomes.
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Decision making is a critical function of management. However, care needs to be taken to ensure that decisions are not taken on an emotional basis.
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This document discusses the socio-cultural impacts of tourism. It outlines several positive impacts such as cultural revival through the preservation of heritage and traditions. Tourism also promotes global understanding and improves standards of living. However, there are negative impacts as well, such as the commercialization of culture and increasing social problems. To mitigate these disadvantages, the document emphasizes community involvement in sustainable tourism planning. It also suggests treating cultural differences with acceptance and preserving cultural essence while discarding negative aspects.
Cash conservation and working
This document discusses various cash management practices for businesses. It recommends preparing a cash budget and depositing excess cash daily to earn interest. It describes keeping sufficient cash on hand for daily operations and depositing surplus in savings. It also discusses using bank floats to earn interest, concentration banking to accelerate funds flow, maintaining accounts on both coasts to benefit from float, and promptly mailing and collecting accounts receivable to earn returns.
7.1. competition tourism destination new
The document discusses conceptual models for understanding tourism destination competitiveness, including Porter's model of competitive forces. It summarizes several approaches: Porter's model outlines 5 competitive forces - the threat of new entrants, power of suppliers and buyers, threat of substitutes, and competitive rivalry. The conceptual model of Ritchie and Crouch identifies factors like marketing, service quality, and resource management. Finally, it synthesizes the main variables that determine a destination's competitiveness.
3.3. forecasting market opportunities
The document discusses various methods for forecasting market opportunities and their advantages and limitations. It describes statistical methods that use past data but don't work for new products, observation methods that require prior examples, survey methods that provide opinions that may not reflect reality, analogy methods that compare to similar past products but conditions may differ, judgment methods based on experience but hard to defend, and market test methods that are most accurate but also expensive.
3.2. measuring market opportunities
There are four key types of systematic market knowledge systems that provide essential information for assessing markets and industries: internal records, marketing databases, competitive intelligence systems, and client contact systems. Additionally, targeted marketing research can provide insights into particular marketing challenges. Sales forecasts can be generated using either a top-down or bottom-up approach, and utilizing both concurrently is recommended as each has different strengths and insights that provide greater confidence if the results are similar. The six evidence-based forecasting methods outlined are statistical, observation, surveys, analogy, judgment, and market tests.
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Perception
Perception is the process by which individuals organize and interpret sensory impressions to make meaning of their environment. Factors that influence perception include characteristics of the perceiver like attitudes and experiences, as well as characteristics of the target being observed. Individuals in organizations make decisions based on their perceptions, which are influenced by these various factors. While rational decision making aims to select the optimal alternative, in reality most decisions involve bounded rationality where individuals find satisfactory rather than optimal solutions due to limitations. Intuition, based on distilled experience, also influences organizational decision making under conditions of uncertainty or limited facts and time.
Strategic Decision Making Process
This document provides an overview of strategic decision making. It discusses rational models of decision making and their key criteria. It also examines limitations of rational decision making in practice, including individual limitations like bounded rationality and organizational limitations like existing decision processes. Additionally, it outlines a process for strategic risk assessment and considers competitive reactions. A practical model for effective strategic decision making is proposed, and the document concludes by noting decision making often varies in practice.
18Part Three Team Processes27Chapter Eight Team Dynamics.docx
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Part Three Team Processes
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Chapter Eight Team Dynamics
Decision making is a vital function of an organization's health, rather like breathing is to a human being. Indeed, turnaround experts such as Sergio Marchionne sometimes see themselves as physicians who resuscitate organizations by encouraging and teaching employees at all levels to make decisions more quickly and effectively. All businesses, governments, and not-for-profit agencies depend on employees to foresee and correctly identify problems, to survey alternatives and pick the best one based on a variety of stakeholder interests, and to execute those decisions effectively.
Decision making is the process of making choices among alternatives with the intention of moving toward some desired state of affairs.2 The decision-making process can be viewed from three paradigms, and this chapter investigates all three of them. The chapter begins by outlining the rational choice paradigm of decision making. Next, the limitations of this paradigm are discussed, including the human limitation of rational choice. We also examine the emerging paradigm that decisions consist of a complex interaction of logic and emotion. The latter part of this chapter focuses on two activities that are found in most decisions: creativity and employee involvement. We present these topics separately rather than within any stage of decision making, because they deserve more detailed inspection and, in the case of creativity, because it occurs throughout the decision-making process.
194
Part Two Individual Behavior and Processes
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Chapter Seven Decision Making and Creativity
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Part Two Individual Behavior and Processes
Rational Choice Paradigm of Decision Making
How should people make decisions in organizations? Most business leaders would likely answer this question by saying that effective decision making involves identifying, selecting, and applying the best possible alternative. In other words, the best decisions use pure logic and all available information to choose the alternative with the highest value—such as highest expected profitability, customer satisfaction, employee well-being, or some combination of these outcomes. These decisions sometimes involve complex calculations of data to produce a formula that points to the best choice.
In its extreme form, this calculative view of decision making represents the rational choice paradigm, which has dominated decision-making philosophy in Western societies for most of written history.3 It was established 2,500 years ago when Plato and his contemporaries in ancient Greece raised logical debate and reasoning to a fine art. A few centuries later, Greek and Roman Stoics insisted that one should always "follow where reason leads" rather than fall victim to passion and emotions. About 400 years ago, Descartes and other European philosophers emphasized that the ability to make logical decisions is one of the most important accomplishments of human beings.
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There are different types of decision, they include programmed decision and a non-programmed decision. There are different models for decision making such as classical economic model,administrative model and Herbert Simons model of decision making.
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Supervision of Instruction and Analysis of Teaching Report.pptx
The document discusses decision making, including definitions, theories, approaches, procedures, strategies, and implications for education. It defines decision making as identifying and choosing the best option from alternatives. Common decision types include yes/no, choice selection, and contingent decisions based on conditions. Theories discussed include normative and descriptive decision theory, causal decision theory, evidential decision theory, game theory, and Bayesian theory. Key approaches are authoritarian, group-based, and automated systems. Good decision making follows procedures like generating alternatives and evaluating them before selecting the best option. Strategies include optimizing, satisficing, maximax, and maximin. Bad decisions can result from lack of alternatives, information, or evaluation. The document stresses the importance
Management is a process by which organisational goals are achieved th.pdf
Management is a process by which organisational goals are achieved through the use of
corporate resources. These organisational decisions are typically made by managers. Managers
oversee this process in an attempt to optimise it. To understand how computers support
managers, it is necessary first to describe what managers do. They do many things, depending on
their position in the organisation, the type and size of the organisation, organisational policies
and culture, and the personalities of the managers themselves. A manager's role can be
categorised into: - Interpersonal - figurehead, leader, liaison - Informational - monitor,
disseminator, spokesperson - Decisional - entrepreneur, problem solver, resource coordinator and
negotiator A decision refers to a choice made between alternatives. Decision-making in
organisations can be classified into two broad categories: problem-solving and opportunity
exploitation. It is very difficult to make good decisions without valid, timely and relevant
information. The number of alternatives to be considered is increasing, due to innovations in
technology, improved communication, the development of global markets, and use of the
Internet. A key to good decision-making is to explore and compare many relevant alternatives.
Many decisions are made under time pressure. Even in real time, frequently it is not possible to
manually process the needed information fast enough to be effective. Due to uncertainty in the
decision environment, it is frequently necessary to conduct a sophisticated analysis to make a
good decision. It is often necessary to rapidly access remote information, consult with experts or
have a group decision-making session. The above trends cause difficulties in making decisions,
but a computerised analysis can be of enormous help. Decisions range from simple to very
complex and complex decisions are composed of a sequence of interrelated sub-decisions.
QUESTION 1 (30 Marks) Discovery, communication and collaboration tools provide indirect
support to decision-making, however there are several other information technologies used to
directly support decision-making. Explain the decision information systems available to the
various levels of management, for making informed decisions..
Management is a process by which organisational goals are achieved thr.pdf
Management is a process by which organisational goals are achieved through the use of
corporate resources. These organisational decisions are typically made by managers. Managers
oversee this process in an attempt to optimise it. To understand how computers support
managers, it is necessary first to describe what managers do. They do many things, depending on
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and culture, and the personalities of the managers themselves. A manager's role can be
categorised into: - Interpersonal - figurehead, leader, liaison - Informational - monitor,
disseminator, spokesperson - Decisional - entrepreneur, problem solver, resource coordinator and
negotiator A decision refers to a choice made between alternatives. Decision-making in
organisations can be classified into two broad categories: problem-solving and opportunity
exploitation. It is very difficult to make good decisions without valid, timely and relevant
information. The number of alternatives to be considered is increasing, due to innovations in
technology, improved communication, the development of global markets, and use of the
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have a group decision-making session. The above trends cause difficulties in making decisions,
but a computerised analysis can be of enormous help. Decisions range from simple to very
complex and complex decisions are composed of a sequence of interrelated sub-decisions.
QUESTION 1 (30 Marks) Discovery, communication and collaboration tools provide indirect
support to decision-making, however there are several other information technologies used to
directly support decision-making. Explain the decision information systems available to the
various levels of management, for making informed decisions..
Using Information Aggregation Markets for Decision Support
Information Aggregation Markets, often referred to as prediction markets, are markets that are designed to aggregate information from a disparate pool of human individuals to make predictions about the likely outcome of future uncertain events. This paper looks at how Information Aggregation Markets can be incorporated into the standard body of decision making theory. It examines how Information Aggregation Markets can be used as decision support systems, and provides empirical evidence from a wide variety of sources as to the effectiveness and practicality of Information Aggregation Markets. Finally, this paper details some future research questions to be addressed in the area of Information Aggregation Markets.
Decision making
The document provides an overview of business decision making. It discusses key concepts such as the types of decisions managers make, the decision-making process, models of decision making, and tools that can be used. Some of the main points covered include:
- Managers are responsible for making independent decisions to efficiently execute organizational functions.
- Decision-making involves selecting the best alternative from multiple options to solve problems like crises, opportunities, or routine issues.
- Models of rational decision making assume managers logically choose alternatives to maximize goals, though bounded rationality recognizes limits to rationality.
- Quantitative and qualitative tools can help structure decision making, including techniques like marginal analysis, decision trees, and brainstorming
Why do we diverge from the Rational Choice Paradigm when identifying.pdf
Why do we diverge from the Rational Choice Paradigm when identifying problems and
opportunities?
Solution
We diverge from the Rational choice Paradigm while identifying the problem and opportunity
because it seems so logical, but is impossible to apply in reality. The reason behind it is that the
model assumes that ‘people are efficient and are logical information processing machines’. But
in reality, people have difficulty in recognizing problems and they cannot process the volume of
information needed to identify the best solution to the problems; and even they face difficulty
recognizing when and where their choices have failed. The second reason why the rational model
doesn’t fit in reality is that it only focuses on logical thinking and ignores the fact that the
emotions also influence, in fact even dominate the decision-making process.
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Decision Making in Organization
- 1. Welcome to Organizational Behavior Decision Making in Organization[ ]
- 2. What’s are the models of decision-making…???
- 3. The first is the Rational Decision- Making model…
- 4. This model assumes a perfect world in order to make decisions. It assumes that there is complete information, that every option has been identified and that there is a maximum payoff.
- 5. The rational decision-making model relies on a number of assumptions, including that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility.
- 6. The second model is Bounded Reality model…
- 7. This model represents more of the real world where it seeks solutions that are the best, given the information that is available.
- 8. Our limited information-processing capability makes it impossible to assimilate and understand all the information necessary to optimize. So most people respond to a complex problem by reducing it to a level at which they can readily understand it.
- 9. The third model is based on intuition…
- 10. This is the non-conscious process that occurs as a result of experiences that result in quick decisions.
- 11. For most of the twentieth century, experts believed decision makers’ use of intuition was irrational or ineffective.
- 12. That’s no longer the case.38 We now recognize that rational analysis has been overemphasized and, in certain instances, relying on intuition can improve decision making.39 But we can’t rely on it too much.
- 13. Because it is so unquantifiable, it’s hard to know when our hunches are right or wrong. The key is neither to abandon nor rely solely on intuition, but to supplement it with evidence and good judgment.