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Decision Making ProcessesDecision Making Processes
Good Terms to KnowGood Terms to Know
 Organizational Decision-makingOrganizational Decision-making
 Problem identificationProblem identification
 Problem solutionProblem solution
 Programmed decisionsProgrammed decisions
 Nonprogrammed decisionsNonprogrammed decisions
Individual Decision MakingIndividual Decision Making
 Two ApproachesTwo Approaches
 Rational ApproachRational Approach
 When do we use it?When do we use it?
Rational ApproachRational Approach
Individual Decision MakingIndividual Decision Making
 Bounded Rationality PerspectiveBounded Rationality Perspective
 When do we use it?When do we use it?
 Intuitive Decision-makingIntuitive Decision-making
 Nonprogrammed=Nonprogrammed=
 Programmed=Programmed=
Organizational Decision MakingOrganizational Decision Making
 What is it?What is it?
 Four modelsFour models
 Management Science ApproachManagement Science Approach
 Carnegie ModelCarnegie Model
 Incremental Decision Making ProcessIncremental Decision Making Process
 Garbage Can ModelGarbage Can Model
Management Science ApproachManagement Science Approach
 Similar to rational individual approachSimilar to rational individual approach
 StructuredStructured
 TechnologyTechnology
Carnegie ModelCarnegie Model
 CoalitionsCoalitions
 Why use coalitions?Why use coalitions?
 ImplicationsImplications
 SatisficationSatisfication
 Short-term outlookShort-term outlook
 Discussion and bargainingDiscussion and bargaining
 Problem identification and implementationProblem identification and implementation
strategiesstrategies
Incremental Decision ProcessIncremental Decision Process
ModelModel
 Focuses on sequence of events fromFocuses on sequence of events from
problem discovery to solutionproblem discovery to solution
Learning OrganizationsLearning Organizations
 What are they?What are they?
 How are they different from otherHow are they different from other
organizations?organizations?
 Two Approaches to Decision MakingTwo Approaches to Decision Making
 Combine Incremental Process & CarnegieCombine Incremental Process & Carnegie
ModelsModels
 Garbage Can ModelGarbage Can Model
Garbage Can ModelGarbage Can Model
 Extremely organic environmentsExtremely organic environments
 Three CausesThree Causes
 Problematic preferencesProblematic preferences
 Unclear, poorly understood technologyUnclear, poorly understood technology
 TurnoverTurnover
Garbage Can ModelGarbage Can Model
 Stream of EventsStream of Events
 ProblemsProblems
 Potential solutionsPotential solutions
 ParticipantsParticipants
 Choice opportunitiesChoice opportunities
 ConsequencesConsequences
Garbage Can ModelGarbage Can Model
Contingency Decision-MakingContingency Decision-Making
 Two dimensionsTwo dimensions
 Problem consensusProblem consensus
 Technical knowledge about solutionsTechnical knowledge about solutions
Special Decision CircumstancesSpecial Decision Circumstances
 High Velocity EnvironmentsHigh Velocity Environments
 CharacteristicsCharacteristics
 How to overcome themHow to overcome them
 Decision Making & LearningDecision Making & Learning
 Escalating CommitmentEscalating Commitment
 Why does it happen?Why does it happen?
THANK YOUTHANK YOU
SYED SADATHSYED SADATH
CMR-MBACMR-MBA

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Decision making processes

  • 2. Good Terms to KnowGood Terms to Know  Organizational Decision-makingOrganizational Decision-making  Problem identificationProblem identification  Problem solutionProblem solution  Programmed decisionsProgrammed decisions  Nonprogrammed decisionsNonprogrammed decisions
  • 3. Individual Decision MakingIndividual Decision Making  Two ApproachesTwo Approaches  Rational ApproachRational Approach  When do we use it?When do we use it?
  • 5. Individual Decision MakingIndividual Decision Making  Bounded Rationality PerspectiveBounded Rationality Perspective  When do we use it?When do we use it?  Intuitive Decision-makingIntuitive Decision-making  Nonprogrammed=Nonprogrammed=  Programmed=Programmed=
  • 6. Organizational Decision MakingOrganizational Decision Making  What is it?What is it?  Four modelsFour models  Management Science ApproachManagement Science Approach  Carnegie ModelCarnegie Model  Incremental Decision Making ProcessIncremental Decision Making Process  Garbage Can ModelGarbage Can Model
  • 7. Management Science ApproachManagement Science Approach  Similar to rational individual approachSimilar to rational individual approach  StructuredStructured  TechnologyTechnology
  • 8. Carnegie ModelCarnegie Model  CoalitionsCoalitions  Why use coalitions?Why use coalitions?  ImplicationsImplications  SatisficationSatisfication  Short-term outlookShort-term outlook  Discussion and bargainingDiscussion and bargaining  Problem identification and implementationProblem identification and implementation strategiesstrategies
  • 9. Incremental Decision ProcessIncremental Decision Process ModelModel  Focuses on sequence of events fromFocuses on sequence of events from problem discovery to solutionproblem discovery to solution
  • 10.
  • 11. Learning OrganizationsLearning Organizations  What are they?What are they?  How are they different from otherHow are they different from other organizations?organizations?  Two Approaches to Decision MakingTwo Approaches to Decision Making  Combine Incremental Process & CarnegieCombine Incremental Process & Carnegie ModelsModels  Garbage Can ModelGarbage Can Model
  • 12. Garbage Can ModelGarbage Can Model  Extremely organic environmentsExtremely organic environments  Three CausesThree Causes  Problematic preferencesProblematic preferences  Unclear, poorly understood technologyUnclear, poorly understood technology  TurnoverTurnover
  • 13. Garbage Can ModelGarbage Can Model  Stream of EventsStream of Events  ProblemsProblems  Potential solutionsPotential solutions  ParticipantsParticipants  Choice opportunitiesChoice opportunities  ConsequencesConsequences
  • 15. Contingency Decision-MakingContingency Decision-Making  Two dimensionsTwo dimensions  Problem consensusProblem consensus  Technical knowledge about solutionsTechnical knowledge about solutions
  • 16.
  • 17. Special Decision CircumstancesSpecial Decision Circumstances  High Velocity EnvironmentsHigh Velocity Environments  CharacteristicsCharacteristics  How to overcome themHow to overcome them  Decision Making & LearningDecision Making & Learning  Escalating CommitmentEscalating Commitment  Why does it happen?Why does it happen?
  • 18. THANK YOUTHANK YOU SYED SADATHSYED SADATH CMR-MBACMR-MBA