Internet Notes-Ch.11

Internet Notes-Ch.11 - Chapter11 I. .Thisis ,...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11 I. What is Decision Making? Decision making  is the process of developing a commitment to some course of action. This is  a process that involves making a choice, and it also involves making a commitment of  resources such as time, money or personnel.  problem  exists when a gap is perceived between some existing state and some desired  state. Decision making is also a process of problem solving.  A. Well-Structured Problems  In a  well-structured problem , the existing state is clear, the desired state is clear, and how to  get from one state to the other is fairly obvious. Organizations prefer a  program  or  standardized way of solving a problem when dealing with well-structured problems. Programs  short-circuit the decision-making process by enabling the decision-maker to go directly from  problem identification to solution. Many of the problems encountered in organizations are well  structured and programmed. Decision making is a useful means of solving these problems.  B. Ill-Structured Problems  In an  ill-structured problem , the existing and desired states are unclear, and the method of  getting to the desired state is unknown. These problems are usually unique, complex, and have  not been encountered before. Ill-structured problems cannot be solved with programmed  decisions. In dealing with these problems, organizations use non-programmed decision making  which means that they will gather more information and be more self-consciously analytical in  their approach. Ill-structured problems can entail high risk and stimulate political  considerations.  II. The Complete Decision Maker — A Rational Decision-Making Model When a rational decision maker identifies a problem, he or she is likely to search for  information to clarify the problem and suggest alternatives; evaluate the alternatives and  choose the best for implementation. The implemented solution is then monitored over time to  ensure its immediate and continued effectiveness. If difficulties occur at any point in the  process, repetition or recycling may be effected.  A. Perfect versus Bounded Rationality  Perfect rationality involves a decision strategy that is completely informed, perfectly logical, and  oriented toward economic gain. While useful for theoretical purposes, these characteristics do  not exist in real decision makers. According to Herbert Simon, administrators use  bounded  rationality  rather than perfect rationality. While they try to act rationally, they are limited in their  capacity to acquire and process information, and time constraints and political considerations  also act as bounds to rationality. Framing and cognitive biases illustrate the operation of  bounded rationality. 
Image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern