Session 16 - Decision Making Processes Fall 2009

Session 16 - Decision Making Processes Fall 2009 - IOE 421...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
IOE 421 Work Organizations IOE 421 Work Organizations Session 16 Decision Making Processes October 30, 2009
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
IOE 421 Work Organizations Our Content Today Introduction of Special Guests Lecture – A Brief Overview of Decision Making Processes Introduction of our Guest Speaker: Col. Jack Lousma (USMC, Ret.), National Aeronautics and Space Administration A Conversation with our Guest Speaker Your Questions and Open Discussion Next Class Assignments
Background image of page 2
IOE 421 Work Organizations Introduction of Special Guests
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
IOE 421 Work Organizations Overview of Decision Making Processes Overview Decision making is defined as process of identifying and solving problems Two main types of decision making: Individual decision making: Made under control of single person Organizational decision making: Decisions made by a collective group rather than by individuals, so decision-making processes are more complicated Complications arise from possibility of disagreement among influential members / factions within the organization
Background image of page 4
IOE 421 Work Organizations Overview of Decision Making Processes Individual Decision Making Two classical models for individual decision making: Rational Model Bounded Rationality Model Limitations in rational decision making model drives the importance of the bounded rationality model
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
IOE 421 Work Organizations Individual Decision Making Rational Model: Rational approach to decision making is the systematic analysis of a problem and choice of a solution Rational decision making takes place in 2 stages (problem identification and problem solution) and can be further broken down into 8 steps NOTE: Meaning of "rational approach" used here differs somewhat from the notion of rational behavior in economic theory. Rational behavior in economics assumes only that individuals maximize subjective utility. Overview of Decision Making Processes
Background image of page 6
IOE 421 Work Organizations Individual Decision Making Bounded Rationality Model: This approach covers 2 types of decisions: Programmed decisions: Used for repetitive, well-understood problems. Well defined procedures exist to find a solution. Non-programmed decision: Used for novel, poorly defined problems. No pre-determined procedure exists to find a solution.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/05/2010 for the course IOE 421 taught by Professor Santer during the Spring '10 term at University of Michigan.

Page1 / 24

Session 16 - Decision Making Processes Fall 2009 - IOE 421...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online