L14-20101022

L14-20101022 - Decision making in organizations MGMT121...

Info iconThis preview shows pages 1–14. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Decision making in organizations MGMT121 Lecture 14 22 Oct., 2010
Background image of page 1

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

View Full DocumentRight Arrow Icon
Today’s class agenda 1. Types of problems 2. Rational choice decision making 3. Bounded rationality decision making 4. Intuition decision making 5. Common errors in decision making 2
Background image of page 2
By the end of today’s lecture, you should be able to: 3 1. Differentiate between programmed and nonprogrammed decisions 2. Explain rational choice paradigm, its assumptions and differences with OB approach 3. Describe bounded rationality and satisficing 4. Explain and prevent escalation of commitment and groupthink
Background image of page 3

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

View Full DocumentRight Arrow Icon
4
Background image of page 4
5 How did you decide coming to HKUST? Were you able to list out all alternatives? Did you list out your selection criteria? Did you go by your intuition? Did you flip a coin?
Background image of page 5

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

View Full DocumentRight Arrow Icon
6
Background image of page 6
7 What is decision making? It is a conscious process of making choices among alternatives with the intention of moving toward some desired state of affairs (textbook, p.115)
Background image of page 7

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

View Full DocumentRight Arrow Icon
8 All managers want to make good decisions because we are judged on the outcomes of those decisions
Background image of page 8
9 All decision-making process starts with identifying a problem or opportunity A problem is a gap between “what is” and “what ought to be” An opportunity is a gap between current expectations and a potentially better situation ( textbook, p.116)
Background image of page 9

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

View Full DocumentRight Arrow Icon
10 Decision Making Rational choice decision- making Problems Bounded Rationality Decision Making Process Structured Problems Unstructured Problems Programmed Decisions Policy Procedure Rule Non-programmed Decisions Rational choice decision- making Intuitions
Background image of page 10
Structured problems programmed decision-making What are structured problems? Decision maker’s goal is clear The problem is straightforward, familiar The decision maker does not need to repeatedly make new judgments about what should be done Information about problem is easily defined and complete 11 Examples Handling of your request to add / drop class Day-to-day operations
Background image of page 11

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

View Full DocumentRight Arrow Icon