BUS 374 Chapter Notes - Chapter 12: Michael D. Cohen (Academic)
11 Dec 2014
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2 major stages in organizational decision making o o: problem id. Monitor problem diagnose issues: problem solution consider alternatives, choose, implement programmed decisions: repetitive, well defined, have procedures for solving o info available, certainty that decision will be successful non programmed decisions. Individual decision making rational approach: managers should try to make decisions bounded rationality perspective: time and resource constraints how decisions have to be made under severe. 5-8 problem solution stage: manager will have to take shortcuts by relying on intuition and experience. Bounded rationality approach time pressure, large number of internal and external factors, and all ill-defined o nature of a problem rules out systematic analysis. Identification phase o o o recognition of problem recognition stimulated by problem or opportunity diagnosis: gather more needed information to define problem. Development phase o o search to seek out alternative, screen o what did organization do in the past or design a custom solution.
