Unformatted text preview: o avoid conflict and seeks acceptance F. Organizational Constraints Following are the organizational constraints that affect decisionmakers. Performance evaluat ion Managers are strongly influenced in their decisio n making by the criteria by which they are evaluated. Their performance in decisio n making will reflect expectation. Sikkim Manipal University 109 Perception Unit 8 Reward systems The organization’s reward system influences decision makers by suggesting to them what choices are preferable in terms of personal payoff. Programmed routines – All, but the smallest of organizations create rules, policies, procedures, and other formalized regulations in order to standardize the behavior of their members. Time constraints Decisions must be made quickly in order to stay ahead of the competition and keep customers satisfied. Almost all important decisions come with explicit deadlines. Historical Precedents Decisions have a context. Individual decisions are more accurately characterized as points in a stream of decisions. Decisions made in the past are ghosts which continually haunt current choices. It is common knowledge that the largest determining factor of the size of any given year’s budget is last year’s budget. Cultural Differences The cultural background of the decision maker can have significant influence o n : Ethics in Decision Making Ethical considerations should be an important criterion in organizational decision making. There are three Ethical Decision Criteria: 1. Utilitarian criterion—decisions are made solely on the basis of their outcomes or consequences. The goal of utilitarianism is to provide the greatest good for the greatest number. This view tends to dominate business decision making. 2. Focus on rights—calls on individuals to make decisions consistent with f undamental liberties and privileges as set forth in documents such as the Bill of Rights. · An emphasis on rights means respecting and protecting the basic rights of individuals, such as the right to privacy, to free speech, and to due process. Sikkim Manipal University 110 Perception Unit 8 3. Focus on justice—requires individuals to impose and enforce rules fairly and impartially. There is an equitable distribution of benefits and costs. Selfassessment questions 6 1. The rational decision making model proposes _______________ steps. 2. People respond to a problem with a limited informationprocessing capability. As a result, people seek solutions that are satisfactory and suff icient. This is called __________________ 8.8 Summary Individuals behave in a given manner based not on the way their external environment actually, is but, rather, on what they see or believe it to be. Perception can be defined as s a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. Since people’s behavior is based...
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This note was uploaded on 03/01/2014 for the course MBA mba taught by Professor Smu during the Fall '10 term at Manipal University.
- Fall '10