Case Analysis 2

anuskee

C11_Daft_OTD3Ce_Unit9.pptx

Home >Business & Finance homework help >Management homework help >Case Analysis 2

PowerPoint Presentation for

Organization Theory & Design

Richard L. Daft

Ann Armstrong

Created for the Third Canadian Edition

Chapter 11, Slide 1

Part 5 Managing Dynamic Processes

Chapter 11 Decision-Making Processes

Chapter 11, Slide 2

Chapter Snapshot

Individual decision making

Organizational decision making

The learning organization

Contingency decision-making framework

Special decision circumstances

11-

Chapter 11, Slide 3

Organizational Decision Making

Organizational decision making is the process of identifying and solving problems.

Problem Identification Stage

Problem Solution Stage

Programmed Decisions

Repetitive and well defined

Nonprogrammed Decisions

Novel and poorly defined

11-

Chapter 11, Slide 6

Individual Decision Making

Rational Approach

Systematic analysis

Step-by-step sequence

11-

Bounded Rationality Perspective

Rational approach not always realistic

Constraints and trade-offs

Intuition

Chapter 11, Slide 4

Individual Decision Making

Rational Approach

Systematic analysis

Step-by-step sequence

11-

Bounded Rationality Perspective

Rational approach not always realistic

Constraints and trade-offs

Intuition

Chapter 11, Slide 4

Rational Choice Decision-Making Process

2. Choose the best decision process

% 16.666 16.666 16.666 16.666 16.666 16.666

Bounded Rationality Perspective

11-

Chapter 11, Slide 5

Organizational Decision Making

Management Science Approach

Use of statistics to identify relevant variables

Removed human element

Very successful for military problems

Good tool for decisions where variables can be identified and measured

A drawback of management science is that quantitative data are not rich and lack tacit knowledge.

11-

Chapter 11, Slide 7

11-

Carnegie Model

It based on the work of Richard Cyert, James March and Herbert Simon – Carnegie-Mellon University.

Research indicated that organization-level decisions involved many managers and that a final choice was based on a coalition among those managers.

Chapter 11, Slide 8

11-

Carnegie Model

Reasons for Management Coalitions:

Organizational goals are often ambiguous and inconsistent.

Individual managers intend to be rational but function with human cognitive limitations.

Coalition -> alliance among several managers who agree about organizational goals and problem priorities.

Chapter 11, Slide 8

11-

Carnegie Model

Chapter 11, Slide 8

Incremental Decision Process Model

11-

It places less emphasis on the political and social factors.

It tells more about the structured sequence of activities undertaken from the discovery of a problem to its solution.

Major organizational choices are usually a series of small choices that combine to produce the major decision.

Chapter 11, Slide 9

Contingency Decision-Making Framework

11-

The use of an approach is contingent on the organization setting.

Technical Knowledge about Solutions

Problem Consensus

Chapter 11, Slide 13

Contingency Decision-Making Framework

11-

Chapter 11, Slide 13

Chapter Summary

Most decisions are not made in a logical manner.

Individuals make decisions, but organizational decisions are not made by a single individual.

Non-rational processes such as escalating commitment are quite common.

Conflict exists when problems are not agreed upon.

The garbage can model has become a description of decision making.

Organizations operate in high-velocity environments.

Allowing biases to cloud decision making can have negative consequences.

11-

Chapter 11, Slide 15

The Learning Organization

Combining the Incremental Process and Carnegie Models

11-

Chapter 11, Slide 9