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Organizational decision makingAbdan Syakuro(1406643255)Agung WS(1406643311)Delli Asterina(1406643633)Idham Rizky (1406643980)Types of decisionTypes of DecisionsOrganizational Decision Making:The process of responding to a problem by searching for and selecting a solution or course of action that will create value for organizational stakeholder

Types of DecisionsOrganizational decision making process of identifying and solving problemsProblem IdentificationProblem SolutionProgrammed Decisions repetitive and well definedNonprogrammed Decisions novel and poorly defined

Decision Making in Todays Environment

Individual decision making

Individual Decision MakingRational approach ideal method for how managers should make decisions

Individual Decision MakingBounded rationality perspective : Decision made under severe time and resource constraints.Constraints and Tradeoffs: Organizational constraint on decision ( Level of agreement, ethical values)

The role of intuition: Use experience and judgment rather than sequential logic or explicit reasoning to make decision.

Organizational decision makingOrganizational Decision MakingManagement Science Approach: Ideal method for making decision (Statistical & Mathematical)Carnegie Model: Rationality approach to individual making, as well as provide new insight about organization.

Incremental Decision MakingStructured sequence of activities undertaken from the discovery of a problem to its solution. (less on political & social factor)Phase: Identification (Recognition)Development (Shaped to solve the problem)Selection (Choose solution)Dynamic Factors: Internal, New option & External interrupt.

Organizational decision and changeOrganizational Decisions and ChangeCombining Incremental And Carnegie Models, Coalition Building is especially relevant for the problem identification stage.

Garbage Can Model, deals with the pattern or flow of multiple decisions within organization, whereas the incremental and Carnegie models focus on how a single decision is made.

Organized Anarchy, garbage can model was developed to explain the pattern of decision making in organizations that experience extremely high uncertainty. Three characteristic; (1)Problematic preferences, (2)Unclear, Poorly understood technology, (3)Turnover.

Organizational Decisions and ChangeStreams of Events, garbage can model with decision process is not seen as a sequence of steps that begins with a problem ends with a solution. Four stream relevant; (1)Problem, (2)Potential Solutions, (3)Participants, (4) Choice Opportunities.

Consequences, Four specific consequences of the garbage can decision process.(1) Solution May be proposed even when problems do not exist.(2) Choice are made without solving problems.(3) Problem may persist without being solved.(4) A few problems are solved.

Contingency decision-making frameworkContingency Decision-Making FrameworkProblem Consensus, refers to the agreement among managers about the nature of a problem or opportunity and about which goals and outcomes to pursue.

Technical Knowledge, refers to understanding and agreement about how to solve problems and reach organizational goals.

Individual :Rational Approach, ComputationOrganization:Management Science1Individual :BargainingCoalition Formation Organization:Carnegie Model2Individual :JudgmentTrial and ErorOrganization:Incremental Decision Model3Individual :Bargaining and JudgementInspiration and immitationOrganization:Carnegie and incremental Decision Process ModelEnvolving to Carbage Can Model4SOLUTION KNOWLEDGECertainUncertainPROBLEMCONSENSUSCertainUncertainCONTINGENCY FRAMEWORKSpecial decision circumstancesSpecial Decision CircumstancesHIGH VELOCITY ENVIRONMENTPolanya:Pembuat keputusan mengikuti informasi teraktual sebagai pengembangan dan dasar intuisi dalam bisnisDalam keputusan utama, perusahaan memiliki berbagai alternatif keputusanCepat, pengambil keputusan yang berhasil akan meminta saran dari setiap orang dan sangat tergantung terhadap satu atau dua pengetahuan, misalnya universitas terpercaya sebagai konselor.Melibatkan keseluruhan pekerjaKeputusan saling terintegrasi dan dengan arah strategi secara keseluruhanDECISION MISTAKES AND LEARNINGTerkadang hasil keputusan dari organisasi mengalami kegagalan, khususnya ketika menemui ketidakpastian yang tinggi. Kegagalan inilah yang akan digunakan oleh manager untuk memperbaki keputusan pada alternatif berikutnya.DOGNITIVE BIASESKesalahan dalam penilaian yang biasanya terjadi karena kecenderungan seseorang dan merupakan awal dari pilihan yang buruk.

Escalating Comitment, manajer biasanya memiliki harapan yang perlahan naik akan suatu keputusan yang memang salahProspect theory, ketakutan manager akan kerugian yang mungkin diderita daripada kemungkinan keuntungan yang mungkin didapat.Groupthink, kecenderungan orang2 dalam grup untuk menekan opini yang bertentangan.Overcoming Personal BiasesEVIDENCE BASED MANAGEMENTadalah komitmen untuk membuat keputusan yang lebih informatif dan cerdas berdasarkan fakta dan bukti yang ada.ENCOURAGE DISSENT AND DIVERSITY perbedaan dan keragaman pendapat akan sangat berguna dalam perubahan yang kompleks. Hal ini akan mendorong variasi ide dan opini yang lebih luas. Biasanya perusahaan membagi pekerja dalam bebrapa kelompok dan membentuk devils advocate. Selain itu bisa juga dengan rittual dissent.Thank You