Week 5 Discussion

Organizational Decision Making

Decision making in organizations begins with identifying the problem and providing a solution. Problems are identi�ed in the identi�cation stage by measuring and monitoring performance and isolating causes for missing targets. The solution stage is where alternatives are explored and where managers make the best rational decision and implement it.

Decision making can be broken into two categories: programmed and nonprogrammed decisions. Programmed decisions are easily identi�ed and executed. They tend to be the decisions that are repetitive. Good information exists that makes alternatives obvious and solves the problem easily. Typically, policies and procedures may exist to easily guide programmed decisions. For example, an employee handbook would clearly state that vacation time may be used only for planned time off. This makes it easy for a manager to implement as few alternatives exist.

Nonprogrammed decisions are not clearly de�ned; therefore, solutions to problems are not found in policies and procedures, which creates uncertainty. Nonprogrammed decisions are related to new problems that managers have never experienced. A new manager might lack experience in dealing with some problems as compared to an experienced manager. Solutions are not obvious, making it

Methodology of Better Decision Making

The nature of business and management requires that decisions are made, on a daily business. The role of the manager is identify problems and to make decisions. Some decisions are simple, some complex. Some problems are obvious and fall into the laps of managers, others require work to identify. Sometimes decisions are big, game changing decisions. Most of the time the decisions managers make are not game changing, but necessary to keep the business operating ef�ciently. Decision making in organizations begins with identifying the problem and providing a solution. Problems are identi�ed in the identi�cation stage by measuring and monitoring performance and isolating causes for missing targets. The solution stage is where alternatives are explored and where managers make the best rational decision and implementing it.

dif�cult to isolate alternatives. Today’s complex, highly competitive, and rapidly changing business environment increases problems that managers have never seen before. This, of course, creates a lot of stress and uncertainty. Managers today need to learn new skills for making decisions.

Additional Materials

From your course textbook Organization Theory and Design, read the following chapter:

Decision-Making Processes