ODB Chapter 12

Organizational decision making consists of

• responding to a problem

• searching for and selecting a solution

• searching for and selecting a course

  of action

• create value for organizational

  stakeholders

Satisficing, bounded rationality, and organizational coalitions are the concept of

• • The Rational Model

• • The Carnegie Model

• • The Incrementalist Model

• • The Unstructured Model

• • The Garbage-Can Model

Decision making takes place in a series of small, incremental steps that collectively have a major effect on organizational effectiveness over time. It takes place when uncertainty is high.

• • The Rational Model

• • The Carnegie Model

• • The Incrementalist Model

• • The Unstructured Model

• • The Garbage-Can Model

This is the diagram of

• • The Rational Model

• • The Carnegie Model

• • The Incrementalist Model

• • The Unstructured Model

• • The Garbage-Can Model

Decision makers may propose solutions to problems that do not exist; they create a problem they can solve with solutions that are already available. Possessing these organizational competences, managers seek ways to use them and so they create problems—or decision-making opportunities—for them to solve.

• • The Rational Model

• • The Carnegie Model

• • The Incrementalist Model

• • The Unstructured Model

• • The Garbage-Can Model

When selecting a set of new alternative courses of action, managers tend to choose those that are only slightly, or incrementally, different from those used in the past, thus lessening their chances of making a mistake.

• • The Rational Model

• • The Carnegie Model

• • The Incrementalist Model

• • The Unstructured Model

• • The Garbage-Can Model

Types of organizational learning, EXCEPT

• Exploration

• Learning organization

• Exploitation

• Knowledge management

Level of organizational learning in the form of personal mastery & mental model to better performing

• Individual

• Group

• Organizational

• Interorganizational

Level of organizational learning in the form of system thinking

• Individual

• Group

• Organizational

• Interorganizational

Cognitive biases that can affect manager's information-proccessing abilities

• Cognitive dissonance

• Projection & ego- defensiveness

• Escalation of commitment

• Frequency & representativeness

• Illusion of control