Decision making is the process by which members of an organization choose a specific course of action to respond to the opportunities and problems that confront them. Good decisions help an individual, group, or organization to be effective. Bad decisions hinder effectiveness and result in poor performance and negative attitudes at all organizational levels. Nonprogrammed decision making involves searching for extra information that is needed to make the right choice. Its also decision making in response to novel opportunities and problems. Never experienced before. Programmed decision making- decision making in response to recurring opportunities and problems. Performance program- a standard sequence of behaviors that organizational members follow routinely whenever they encounter a particular type of problems or opportunity. After a few times, nonprogrammed decisions become programmed because we get used to them Classical decision making mode.- a prescriptive approach (how people should make decisions) based on the assumptions that the decision maker has all the necessary information and will choose the best possible solution or response. It has four steps. 1. Listing all alternatives from which a choice will be selected. These alternatives represent different responses to the problem or the opportunity. 2. Listing the consequences of each alternative: the consequences are what would occur if a given alternative were selected. 3. Considering his or her own preferences for each alternative or set of consequences and then ranking the sets from most preferred to least preferred. 4. Selecting the alternative that will result in the most preferred set of consequences The classical model is unrealistic.
Administrative decision making model- descriptive model ( how people actually make decisions) that stresses that incomplete information, psychological and sociological processes, and the decision maker’s cognitive abilities affect decision making and that...
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