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Organization theory and design: Lecture 36 provides students with content about: organizational decision making; critique; problems of coordination and horizontal structures; championed bounded rationality model;... Please refer to the lesson for details!
36 Organizational Decision Making Carnegie Model • • • Championed bounded rationality model for individual decision making Research by Carnegie indicated that organizational level decision making involved many managers and not just top management Management coalitions are needed for organizational level decision making for two reasons organizational goals are ambiguous and operative goals of departments are often inconsistent, so a coalition is required individual humans have cognitive limitations, they can’t identify all that’s needed for decision making Carnegie Model • Opposite to management science approach, this model does not assume that analysis can uncover all possible alternatives This model points out that through managerial coalitions and consensus a major portion of the organizational decision making is and can be covered • – • Satisficing rather than optimization Programmed problems can be solved relying on past patterns, non programmed problems demand bargaining and conflict resolution and hence the need for coalitions – example: political coalitions Critique • The model is ideal for problem identification stage • Problems of coordination and horizontal structures • Possibilities of conflicts, confrontations • Can be time consuming and laborious ... indicated that organizational level decision making involved many managers and not just top management Management coalitions are needed for organizational level decision making for two reasons organizational... alternatives This model points out that through managerial coalitions and consensus a major portion of the organizational decision making is and can be covered • – • Satisficing rather than optimization... problems can be solved relying on past patterns, non programmed problems demand bargaining and conflict resolution and hence the need for coalitions – example: political coalitions Critique •