33 Decision Making Processes 1 Definitions Organizational Decision
- Slides: 5
33 Decision Making Processes 1
Definitions • Organizational Decision Making is the process of identifying and solving problems. – Problem identification stage – Problem solution stage • Programmed Decisions: Repetitive and well defined problems and procedures exist to solve them (e. g. when to replace a photocopier, applicant screening) • Non Programmed Decisions: Novel and poorly defined problems (e. g. strategic planning) 2
Decision Making in Today’s Environment • Current environment demands more large scale change via new strategies, reengineering, restructuring, mergers, downsizing, new product/market development 3
Decision Making in Today’s Environment • Decision Making inside the organization: – Based on bigger, more complex, more emotionally charged issues – Made more quickly – Made in a less certain environment – Require more cooperation from more people involved in making and implementing decisions 4
Decision Making in Today’s Environment • A New Decision Making Process: – – – Is required because no one individual has the information to make all major decisions Is required because no one individual has the time and credibility needed to convince lots of people Relies less on hard data as a base for good decision Is guided by a powerful coalition that can act as a team Permits decisions to evolve through trial and error and incremental steps as needed 5
