Organizational Decision Making is essential for business success, involving systematic evaluation and selection of actions aligned with goals. It has evolved from top-down to inclusive, data-driven approaches. Decision-making styles like directive, analytical, conceptual, and behavioral impact outcomes, and creativity enhances the process. Real-world case studies illustrate these concepts in action.
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Organizational Decision Making is a critical and complex process that is central to the success and operational efficiency of any business
Steps of effective decision making
Effective decision making involves defining objectives, collecting and analyzing data, considering alternatives, making a decision, executing the chosen option, and continuously monitoring and adjusting as needed
The practice of Organizational Decision Making has evolved from a top-down approach to a more data-driven and inclusive model
The Rational Model involves a sequence of steps, including identifying the problem, gathering information, generating alternatives, evaluating them, making a choice, implementing the decision, and assessing outcomes
The Bounded Rationality Model recognizes constraints and suggests that decision-makers often settle for satisfactory solutions rather than optimal ones
The Behavioral Model emphasizes the influence of human elements, such as biases and emotions, on decision-making processes
Creativity plays a vital role in enhancing Organizational Decision Making by introducing innovative and practical solutions to problems and opportunities
Brainstorming
Brainstorming is a technique that encourages divergent thinking and the exploration of unconventional ideas
Lateral thinking
Lateral thinking is a technique that encourages thinking outside the box and exploring unconventional ideas
Creativity can lead to distinctive strategies and solutions that provide a competitive advantage
Directive decision makers have a swift and authoritative approach
Analytical decision makers rely on thorough data analysis and systematic processes
Conceptual decision makers are known for their innovative and intuitive problem-solving
Behavioral decision makers focus on collaboration and the effects of decisions on people
Amazon's directive approach under Jeff Bezos demonstrates the impact of decision-making styles on organizational success
Apple's conceptual approach under Steve Jobs showcases the role of decision-making styles in creating groundbreaking products and maintaining a competitive edge
Limited information and time pressures can hinder the decision-making process, but training and development programs can help manage them more effectively
Groupthink and biases can be overcome by promoting a culture of openness and adopting a data-driven approach
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Definition of Organizational Decision Making
Systematic process to select actions aligning with goals and efficiency.
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Characteristics of Proactive vs Reactive Decision Making
Proactive identifies opportunities; Reactive offers solutions to challenges.
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Importance of Monitoring in Decision Making
Ensures alignment with objectives; allows for necessary adjustments.
