Decision-Making Processes in Organizations
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Questions and Answers

What is the first step in the classical Rational Decision-Making Model?

  • Evaluating each alternative
  • Assessing the effectiveness of the decision
  • Generating a list of alternatives
  • Identifying the problem (correct)

    • The Bounded Rationality Model assumes that decision-makers have complete knowledge to make decisions.

    False (B)

    What term describes the tendency to choose a solution that is 'good enough' rather than optimal?

    satisfice

    The _____ Model depicts decision-making as chaotic and unstructured, often described as random collisions of problems and solutions.

    <p>Garbage Can</p> Signup and view all the answers

    Which of the following is NOT a step in the Rational Decision-Making Model?

    <p>Choosing based on intuition (D)</p> Signup and view all the answers

    Match the decision-making model with its description:

    <p>Rational Models = Systematic and logical decision-making process Bounded Rationality Model = Decision-making under cognitive and situational constraints Garbage Can Model = Chaotic decision-making based on random collisions Intuitive Decision-Making = Rapid decisions based on patterns and gut feelings</p> Signup and view all the answers

    Group decision-making generally lacks diverse perspectives and collective knowledge.

    <p>False (B)</p> Signup and view all the answers

    Who proposed the Bounded Rationality Model?

    <p>Herbert Simon</p> Signup and view all the answers

    Which of the following is NOT a benefit of group decision-making?

    <p>Groupthink (A)</p> Signup and view all the answers

    Conflict in group decision-making is always detrimental.

    <p>False (B)</p> Signup and view all the answers

    What phenomenon in group decision-making may lead to poor decisions due to pressure to conform?

    <p>Groupthink</p> Signup and view all the answers

    The __________ method is a structured decision-making technique that can enhance group decisions.

    <p>Delphi</p> Signup and view all the answers

    Match the following organizational approaches to their descriptions:

    <p>Classical Approach = Rational, top-down decision-making Human Relations Approach = Emphasizes employee participation Systems Approach = Dynamic process influenced by feedback loops Cultural Approach = Role of organizational culture in decision-making</p> Signup and view all the answers

    What is a potential risk of participative decision-making (PDM)?

    <p>Decision paralysis (C)</p> Signup and view all the answers

    All-channel networks allow information flow among all group members freely.

    <p>True (A)</p> Signup and view all the answers

    What is the role of a 'devil's advocate' in group decision-making?

    <p>To challenge assumptions</p> Signup and view all the answers

    Information __________ occurs when too much information overloads decision-makers.

    <p>overload</p> Signup and view all the answers

    Match the following decision-making communication networks with their characteristics:

    <p>Chain Network = Linear flow from top management to employees Wheel Network = Central leader communicates individually with members All-Channel Network = Free flow of information among all members</p> Signup and view all the answers

    Which of the following describes a symptom of groupthink?

    <p>Pressure to conform (D)</p> Signup and view all the answers

    Participative Decision-Making typically reduces resistance to change.

    <p>True (A)</p> Signup and view all the answers

    What approach views decision-making as influenced by interdependent internal and external factors?

    <p>Systems Approach</p> Signup and view all the answers

    The __________ approach values employees as key contributors in decision-making.

    <p>Human Resources</p> Signup and view all the answers

    Flashcards

    Rational Models

    Systematic and logical decision-making processes that define problems, generate alternatives, evaluate options, and select the best solution.

    Steps in Rational Decision-Making

    Identify problem, define criteria, generate alternatives, evaluate and select the best option, implement, and assess effectiveness.

    Limitations of Rational Models

    Assumes perfect knowledge and overlooks human cognitive biases, making it less applicable in real-world scenarios.

    Bounded Rationality Model

    Herbert Simon's model suggesting decision-makers 'satisfice' due to cognitive and situational constraints, choosing good enough solutions.

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    Garbage Can Model

    Describes decision-making as chaotic and unstructured, where problems, solutions, and participants collide randomly.

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    Intuitive Decision-Making

    Decision-making based on intuition and past experiences rather than formal analysis, often used by experts.

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    Group Decision-Making

    Involves collective knowledge and shared responsibility, while providing diverse perspectives but also unique challenges.

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    Communication in Decision-Making

    The role of effective communication in sharing information, clarifying objectives, and enhancing understanding during decision processes.

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    Diverse Perspectives

    Groups bring various viewpoints and expertise, leading to better solutions.

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    Increased Acceptance

    Employees support decisions they helped create, leading to greater commitment.

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    Groupthink

    A phenomenon where consensus-seeking hinders critical thinking, causing poor decisions.

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    Constructive Conflict

    Disagreements that enhance decision-making by bringing different views to light.

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    Time-Consuming Process

    Group decision-making often requires more time than individual decisions due to discussions.

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    Devil’s Advocate

    A role assigned to challenge assumptions and prevent groupthink.

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    Chain Network

    A communication structure where information flows hierarchically from top to bottom.

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    Wheel Network

    A communication structure where a central leader controls the flow of information.

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    Information Overload

    A situation where too much information overwhelms decision-makers.

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    Participative Decision-Making (PDM)

    Involves employees in decisions, enhancing job satisfaction and outcomes.

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    Classical Approach

    Views decision-making as a rational, top-down process emphasizing efficiency.

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    Systems Approach

    Sees decision-making as dynamic, influenced by various factors and feedback loops.

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    Cultural Approach

    Highlights how organizational culture shapes decision-making practices.

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    Critical Approach

    Examines how power dynamics influence decision-making processes.

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    Effective Communication

    Essential for sound decision-making, influencing information sharing and consensus.

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    Study Notes

    Decision-Making Processes in Organizations

    • Decision-making is a complex process impacted by organizational structure, communication, and power dynamics.

    Models of Decision-Making

    • Rational Models: Propose a logical, systematic approach.
      • Involves identifying problems, generating alternatives, evaluating options, and selecting the best solution.
      • Assumes complete information, clear objectives, and logical evaluation of options.
      • Limitations include simplifying real-world complexities and overlooking human cognitive biases.
    • Alternative Models: Reflect realities beyond pure rationality.
      • Bounded Rationality: Decision-makers operate with cognitive and situational constraints, choosing satisfactory rather than optimal solutions. Rely on heuristics and past experiences.
      • Garbage Can Model: Decision-making is chaotic and unstructured, with problems, solutions, participants, and opportunities colliding randomly.
      • Intuitive Decision-Making: Decisions based on pattern recognition, past experience, and gut feelings.

    Group Decision-Making

    • Advantages: Diverse perspectives, increased acceptance, greater creativity.
    • Challenges: Groupthink (pressure to conform); conflict (constructive vs. destructive); time-consuming process.
    • Strategies for Improvement: Encourage diverse viewpoints, use structured techniques (e.g., Delphi method), assign a "devil's advocate."

    Communication & Decision-Making

    • Communication Networks: Influence information flow and decision quality.
      • Chain Networks: Linear, hierarchical flow of information.
      • Wheel Networks: Central leader controls information flow.
      • All-Channel Networks: Free flow of information among all members.
    • Decision Pathologies: Communication pitfalls.
      • Information Overload, Distortion, Filtering, Silence, and Non-participation.

    Participative Decision-Making (PDM)

    • Benefits: Increased employee commitment, innovation, job satisfaction, and reduced resistance to change.
    • Challenges: Time-consuming process, potential conflict between management control, and risk of decision paralysis.

    Organizational Approaches to Decision-Making

    • Classical Approach: Rational, top-down process focused on efficiency and control.
    • Human Relations Approach: Importance of employee participation for satisfaction and motivation.
    • Human Resources Approach: Full employee participation at all levels.
    • Systems Approach: Dynamic, interdependent process influenced by internal and external factors, with feedback loops.
    • Cultural Approach: Organizational culture shapes decision-making, emphasizing values, norms, and rituals.
    • Critical Approach: Examines how power structures influence processes, potentially marginalizing certain groups.

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    Description

    This quiz explores various decision-making processes within organizations, focusing on rational models and alternative frameworks. Understand the complexities arising from organizational structures, information availability, and cognitive biases that influence decisions. Challenge your knowledge on these models and their practical implications in real-world scenarios.

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