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Organization theory and design: Lecture 35 provides students with content about: organizational decision making; management science approach; carnegie model; incremental decision process model; garbage can model;... Please refer to the lesson for details!
35 Organizational Decision Making Organizational Decision Making • Not on individual basis • Problem identification and solution involves many departments, multiple view points, and even other organizations • Many factors affect organizational decision making, such as; internal structure, stability or instability of external environment Organizational Decision Making • Four types of organizational decision making processes: Management science approach Carnegie model Incremental decision process model Garbage can model Management Science Approach • Analogous to rational decision making at individual level • Management science came into being during World War II (maths, Physics, OR concepts applied to help administer and manage military issues) • Example of torpedoes sinking a vessel – how many different variables like speed, time, distance, wind speed, shell size, curvatures etc will be considered Management Science Approach • Analysts then jumped in to give a headstart to management sciences, radars replaced humans as targeting • This approach then diffused into other institutions and corporations and business schools where techniques were studied and elaborated Management Science Approach • Some examples where management science approach has solved organizational problems: Finding right spot for an office/factory Test marketing a new product Drilling for oil Distribution of goods and now telecom services Scheduling of airline employees, ambulance technicians, telephone operators, Advantages • Can accurately and quickly solve complex problems involving many variables • Computer and software technology is further augmenting the use of management science approach Failures • Credit rating scoring by banks on the expense of human judgment • Quantitative data are not rich and not convey tacit knowledge • It is the man behind the gun ...Organizational Decision Making • Not on individual basis • Problem identification and solution involves many departments, multiple view points, and even other organizations •... institutions and corporations and business schools where techniques were studied and elaborated Management Science Approach • Some examples where management science approach has solved organizational... Many factors affect organizational decision making, such as; internal structure, stability or instability of external environment Organizational Decision Making • Four types of organizational decision