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Organizational Decision Making |
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Formally defined as the process of identifying and solving problems. |
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Stage of the organizational decision making process where information about the environmental and organizational conditions is monitored to determine if performance is satisfactory and to diagnose the cause of shortcomings. |
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The stage in the organizational decision making process when alternative courses of action are considered and one alternative is selected and implemented. |
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Novel and poorly defined, and no procedure exists for solving the problem. |
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Individual decision making approach by managers which suggests how managers should try to make decisions. |
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Bounded Rationality Perspective |
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Individual decision making approach by managers which describes how decisions actually have to be made under severe time and resource constraints. |
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Intuitive Decision Making |
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An intuitive decision process where experience and judgement rather than sequential logic or explicit reasoning are used to make decisions. |
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Management Science Approach |
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An approach to organizational decision making is the analog to the rational approach by individual managers. Mathematical and statistical techniques applied to problems that are beyond the ability of individual decision makers. |
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An alliance among several managers who agree about organizational goals and problem priorities. |
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Organizations accept a satisfactory rather than a maximum level of performance, enabling them to achieve several goals simultaneously. |
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Managers look around in the immediate environment for a solution to quickly resolve a problem. |
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Incremental Decision Process Model |
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A decision making approach that places less emphasis on the political and social factors described in the Carnegie model, but tells more about the structures sequence of activities undertaken from the discover of a problem to its solution. |
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An extremely organic organization. Organized anarchies do not rely on the normal vertical hierarchy of authority and bureaucratic decision rules. They result from three characteristics: 1) problematic preferences, 2) unclear, poorly understood technology, and 3)turnover. |
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Refers to the agreement among managers about the nature of a problem or opportunity and about which goals and outcomes to pursue. |
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Refers to the understanding and agreement about how to solve problems and reach organizational goals. |
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Contingency Decision-Making Framework |
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Brings together the two dimensions of problem consensus and technical knowledge about solutions. |
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Refers to an innovative, creative solution that is not reached by logical means. |
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Adopting a decision tried elsewhere in the hope that it will work in this situation. |
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High-Velocity Environments |
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Industries where the rate of competitive and technological change is so extreme that market data are either unavailable or obsolete, strategic windows open and shut quickly, perhaps within a few months, and the cost of poor decisions is company failure. |
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A process where managers and organizations acquire sufficient experience and knowledge to perform more effectively in the future. |
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Persisting in a course of action when it is failing. |
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A model of organizational decision making is based on the work of Richard Cyert, James March, and Herbert Simon, who were all associated with Carnegi-Mellon University. Their research helped formulate the bounded rationality approach to decision making, as well as provide new insights about organizational decisions. |
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Definition
A model of organizational decision making is based on the work of Richard Cyert, James March, and Herbert Simon, who were all associated with Carnegi-Mellon University. Their research helped formulate the bounded rationality approach to decision making, as well as provide new insights about organizational decisions. |
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Most recent and interesting descriptions of organization decisions processes. It is not directly comparable to the earlier models, because the garbage can model deals with the pattern or flow of multiple decisions within organizations. |
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Repetitive and well defined, procedures exist for resolving the problem. They are well structured because criteria of performance are normally clear, good information is available about current performance, alternatives are easily specified, and there is relative certainty that the chosen alternative will be successful. |
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