What are the organizational constraints of nonprogrammed decision-making?
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Need for agreement, shared perspective, cooperation, support, corporate culture and structure, ethical values.
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Need for agreement, shared perspective, cooperation, support, corporate culture and structure, ethical values.
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Desire for prestige, success; personal decision style; and the need to satisfy emotional needs, cope with pressure, maintain self-concept.
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Carneige model, one of the organizational decision models, was developed by Cyert, James March and Herbert Simon from Carnegie-Mellon University.
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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.
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Satisficing means an alternative production made with a limited information just to find solutions for the problems.
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Cognitive bias means a tendency to make irrational decisions about other people and situations.
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Overconfidence, Anchoring bias, Confirmation Bias, Escalation of Commitment, Frame Effect, and Hindsight Bias.
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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.
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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.
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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.
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Anchoring bias means being stuck in the first information coming to mind, which causes us to not evaluate the following data appropriately.
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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.
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First method is to focus on goal. The second method is to look for information that disconfirms your beliefs. Do not try to create meaning out of random events. Increase your options.
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Culture is made up of tangible aspects such as symbols and artifacts and of intangible elements such as values and beliefs.
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After the devastation experienced by Japan following the 2nd World War, Japan’s reborn as an economic power found to be related to the Japanese management style. Globalization led to an increase in awareness and curiosity in the global west for the east. It was self-evident that Japanese miracle was mostly related to the Japanese cultural value system and its reflections within Japanese organizations. Other countries tried to understand and encapsulate these reflections for themselves, and hence the interest in the cultural aspect of organizations tend to strengthen.
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Physical Symbols Slogans Stories Jargon Ceremonies Rites and Rituals Code of Conduct
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1. A Bias for action 2. Close to the customer 3. Autonomy and entrepreneurship 4. Productivity through people 5. Hands-on, value-driven 6. Stick to the knitting 7. Simple form, lean staff 8. Simultaneous loose-tight properties
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Jargon is a contextualized special language.
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The degree of risk & the speed of feedback.
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• Differentiates organization from the others. • Members’ organizational identification is easy. Guides organizational behavior. Creates stability throughout the organization.
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Jargon/names/nicknames Explanations/theories Stories/myths/legends and their heroes and villains Superstitions/rumors Humor/jokes Metaphors/proverbs/slogans Speeches/rhetoric/oratory
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Step 1:Founder comes up with a new business idea. Step 2: Founder finds people sharing his/her vision. Step 3:Founder and initial employees work her/his towards the realization of founder's business idea. Step 4:As organization grows and matures, new employees are recruited, initial values and founder's vision transmitted and hence sustained.
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Major ethical perspectives are the utilitarian view, rights view, justice view, and integrative social contract view.
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Ouchi describes three types of organizations which are called Type J, Type A, and finally Type Z. As the names denote, Type J depicts features of the typical Japanese firm, on the other hand, Type A depicts characteristics of the average American firm. Type Z, offered by Ouchi, is the blended version of Type J and Type A in which suitable elements of Japanese firms are adapted to the US context.
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Lifetime employment Consensual decision-making Collective responsibility Slow evaluation and promotion Implicit, informal control Non-specialized career path Holistic concern
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