PAD-3003 Chapter Notes - Chapter 4: Satisficing, Bounded Rationality, Incrementalism
Document Summary
The nature of decision making includes 7 steps: pinpointing the problem. Identifying causes: setting objectives, must objective, want objective, formulating action alternatives, creating and formulating decision alternatives, blocks to creativity, costs of creativity, evaluating alternatives against organizational objectives, choosing the best course of action. Implementing and evaluating the decision: pinpointing the problem. The decision maker compares the expected standard of performance to the actual standard of performance: what is happening and what should be happening? analysis of problem should indicate the desired behavior, as well as present behavior. The goals (desired condition) should be realized. Pinpointing the possible causes for the disparity between existing and desired condition. Then decide most likely cause for the situation. What are the causes for deviation between existing and desired condition? . After the problem has been identified the decision maker must set objectives that the decision must achieve, Ineffective objective- each person will receive an appropriate financial evaluation interview.