Organizational Theory and Design Dersi 7. Ünite Sorularla Öğrenelim

"Which supplier should we use?"

He or she can be involved in either programmed or non-programmed decision- making.

Policies and rules; capital budgeting; computerized solutions.

Judgment; intuition, creativity; computerized decision support systems and modeling.

Herbert Alexander Simon

Need for agreement, shared perspective, cooperation, support, corporate culture and structure, ethical values.

Desire for prestige, success; personal decision style; and the need to satisfy emotional needs, cope with pressure, maintain self-concept.

Carneige model, one of the organizational decision models, was developed by Cyert, James March and Herbert Simon from Carnegie-Mellon University.

Coalition means a consensus of managers’ decisions about organizational goals and privileged problems. is coalition may consist of diffrent departments, individuals working in different levels and even customers and sometimes suppliers. Bankers, advisors outside the organization and union representatives may be included in this coalition since they must be involved in decision-making process.

Satisficing means an alternative production made with a limited information just to find solutions for the problems.

Cognitive bias means a tendency to make irrational decisions about other people and situations.

Overconfidence, 

Escalation of commitment means that if you also have proofs that prove the truth of the idea against your own idea, you still insist on the accuracy of your own idea.

This means that form of information’s presentation influences the decisions greatly importantly. According to the frame effect, the way we define the problem, the words we choose, emphasis, the way we talk, the way we present our knowledge cause individuals to have various attitudes and perceptions and influence their choices.

Group members suppose that their decisions are perfect and insist on it,

Managers are not informed about the arguments supporting the opposing view,

Group members give more importance to the data supporting their own views and ignore the others,

No one tries to consider alternative options,

Members that do not share the majority’s opinion are excluded.

Anchoring bias means being stuck in the first information coming to mind, which causes us to not evaluate the following data appropriately.

What does hindsight bias mean?

When you create a false belief that when the result of an event becomes clear, you knew this very result beforehand, it means that you have hindsight bias.

First method is to focus on goal.