OUTLINE MODULE 3 EXAM

OUTLINE MODULE 3 EXAM - O UTLI NE MODULE 3 EXAM DECISION...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
OUTLINE MODULE 3 EXAM DECISION MAKING IN ORGANIZATIONS I. The Decision Making Process a. Flow Chart on pg. 1 II. Types of Decisions a. Programmed vs. Nonprogrammed i. Programmed Decisions: highly routine decisions, based on established organizational policies. ii. Nonprogrammed Decisions: Novel decisions with no specified course of actions 1. Strategic Decisions: specific type of nonprogrammed decision a. directs the organization, typically made by the top management b. Top-down vs. Empowered i. Top-Down decision making: decisions made by supervisors flows from the top of the organizations downward. ii. Empowered Decision making: decision making power vested in the employees themselves. III.Individual Decision Styles a. Decision Style Model i. Classifies interpersonal decision making tendencies into four styles: 1. Directive: prefer simpler clear rapid decisions, don’t consider may alternatives, and tend to use pre existing rules. Use ____ to enforce decisions
Background image of page 1

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

View Full DocumentRight Arrow Icon
2. Analytical: analyze complex problems; comfortable with ambiguous information, enjoy problem solving and being innovative—ambiguity 3. Conceptual: humanistic, artistic, and conceptually-oriented to problem solving, very future oriented like, initiating new ideas— creative 4. Behavioral: deeply concerned about group consensus and supporting others, very open to suggestions from others. IV. Decision making in Groups a. Potential benefits i. Pooling of resources ii. Greater acceptance of decisions iii. Advantages when complex decisions need to be made b. Potential Problems i. Wasting time ii. Group conflict iii. Intimidation by group leaders iv. Group think v. Hard to brainstorm for poorly structured creative tasks. (scared of being judged.) V. Decision making by Individuals a. Rational-economic model i. Model of decision making in which all possible alternatives are considered before making the optimal decision b. Administrative model
Background image of page 2
i. Model that recognizes that people have imperfect views of problems, which limits the extent to which they can make rational decisions ii. Bounded rationally: key assumption of administrative model; leads to satisifcing (immediate decision) rather than making optimal decisions c. Image theory i. People and organizations adopt a course of action that best fits their principles, current goals, and plans for the future 1. Step 1: compatibility test (check to see if decision option fits with your self image) if yes. . go to step 2 . .if no reject decision 2. Step 2: profitability test (check to see if decision option is the best available) if yes… accept decision. . if no reject decision VI. Errors in Decision making by Individuals a. Framing effects= one major source of error in decision-making i. Risky choice framing 1. People avoid risks when situations are presented in a way that emphasizes positive gain. . they take risks when presented in a way that emphasizes potential losses that may be suffered ii. Attribute framing effect 1. People evaluate characteristics more positively when they are
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 28

OUTLINE MODULE 3 EXAM - O UTLI NE MODULE 3 EXAM DECISION...

This preview shows document pages 1 - 4. Sign up to view the full document.

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