Flashcards
STRATEGIC ORGANIZATION
Cards in this deck (9)
- 1What are the 8 steps that decision-making according to the Rational Approach can be broken down to?Problem identification stage
1. Monitor the decision environment
2. Define the decision problem
3. Specify decision objectives
4. Diagnose the problem
Problem solution stage
5. Develop alternative solutions
6. Evaluate alternatives
7. Choose the best alternative
8. Implement the chosen alternative - 2Under which circumstances does the Bounded Rationality Perspective explain decision making?When time is limited, a large number of internal and external factors affect a decision, the problem is ill-defined
- 3In intuitive decision-making, what is used to make a decision?Experience and judgment based on years of experience hands-on experience.
- 4Explain the Carnegie ModelManagement coalitions are needed during decision-making for 2 reasons:
1) Organizational goals are often ambiguous and operative goals are inconsistent --> Managers will disagree about problem priorities. They must bargain about problems and build a coalition around the question of which problem to solve.
2) Individual managers intend to be rational but function with human cognitive limitations. Managers do not have the time, resources or mental capacity to identify all dimensions of a problem and process all relevant information. Building a coalition will lead to decisions supported by interested parties.
The process of coalition formation has several implications for decision-making.
1. Decisions are made to be satisficing rather than maximize/optimize performance.
2. Secondly, managers look in the immediate environment, short-run, this is called problemistic search. The carnegie model suggests that search behaviour is just sufficient to produce a satisfactory solutions.
3. Discussion and bargaining are important especially in the problem identification stage. - 5Explain the Incremental Decision Process ModelThe Incremental Decision Process Model puts emphasis on the structured sequence of activities undertaken from the discovery of a problem to its solution. Major organizational choices are usually a series of small choices that combine to produce the major decision. Organizations move through several decision points and may hit barriers (s.c decision interrupts) along the way. These may create decision loops where they have to go back to the previous decision point and reevaluate. Decision loop are one way the organization learns which alternatives will work.
The 3 decision stages discovered by Mintzberg:
1. Identification stage
- Recognition
- Diagnosis
2. Development stage
- Search procedures
- Design a custom solution
3. Selection stage
- Judgement
- Ana
- Bargaining
- Authorization - 6Explain the Garbage Can Model?Deals instead of with how a single decision is made, with the pattern or flow of multiple decisions within an organization. It was developed to explain the pattern of decision-making in which managers deals with extremely high uncertainty.
Organized anarchy - an extremely organic organization. The highly uncertain conditions is refered to as this. Goals, problems, alternatives, solutions are ill-defined. Cause-and-effect relationships within the organization are hard to identify. Organizational positions experience turnover of participants.
Stream of Events: Decisions are the outcome of INDEPENDENT streams of events within the organization. Four streams relevant to organizational decision-making:
1. Problems - points of dissatisfaction with current activities and performances.
2. Potential solutions - flow of ideas proposed for adoption.
3. Participants - employees who come and go throughout the organization and they vary widely in their ideas, perception of problems, experience, values and training.
4. Choice opportunities - o - 7Explain the Management Science Approach?Analogue to the rational approach by individual managers.
Management science is an excellent device for organizational decision-making when problems are analyzable and when the variables can be identified and measured. - 8Explain the Contingency Framework for Using Decision Models
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- Business/Economics Flashcards on STRATEGIC ORGANIZATION, created by Isabella Träskman on 07/03/2022.
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- Isabella Träskman
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