Managers, Groups and Decisions

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Decision Making: Core Process

1950's - Herbert Simon

Decision making is management

Economists theories of making decisions

Assumption

Decision making is rational

'Programmable'

Limits of Rationality

Non-programmed/programmable decisions

Human, not mechanical process

Human emotions and limited capacities

Goal of Admin - make it easier

Simon's Model

Intelligence

Design

Choice

What do managers do?

Wide range of activities

Planning

Allocating

Problem-solving

Always some decision

making

Rarely rational planning

Lots of little decisions made dailyNegotiating

Groups and Decisions

Full of differences

Making Decisions = Constructing them

Conflicting Interests

Not always about consensus

Issues of Communication

Varying Perceptions of Problem

Incomplete Information

People saying what's 'Important'

No agreement on ends and means

Groups and the nature of decisions

Acknowledge both rational and non-rational

Non programmable

Groups more rational?

Non-logical/linear understanding

Any decision ever rational?

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