BU398 Chapter Notes - Chapter 11: Three Steps, Satisficing, Tacit Knowledge
Document Summary
Organizational decision making: defined as the process of identifying and solving problems, which has two major steps: problem identification and problem solution. Programmed decisions: are repetitive and well-defined, include procedures to resolving problems. Nonprogrammed decisions: are novel, ill structured, and poorly defined, no procedure exists for solving the problem. Rational approach: suggests how managers should try to make decisions (standard for managers) Bounded rationality perspective: describes how decisions actually have to be made under severe time and resource constraints. Stresses the need for systematic analysis of a problem followed by choice and implementation in a logical step-by-step sequence. Approach was developed to guide individual decision-making b/c many managers were observed to be unsystematic and arbitrary in their approach to organizational decisions. Many decisions must be made very quickly; time pressure, a large number of internal and external factors affecting a decision, and the ill-defined nature of many problems make systematic analysis virtually impossible.
