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Organizational Design - Ch. 12
Basic Vocabulary from the Chapter and Slides
25
Business
Undergraduate 4
11/24/2011

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Term
Organizational Decision Making
Definition
Formally defined as the process of identifying and solving problems.
Term
Problem Identification
Definition
Stage of the organizational decision making process where information about the environmental and organizational conditions is monitored to determine if performance is satisfactory and to diagnose the cause of shortcomings.
Term
Problem Solution
Definition
The stage in the organizational decision making process when alternative courses of action are considered and one alternative is selected and implemented.
Term
Nonprogrammed Decisions
Definition
Novel and poorly defined, and no procedure exists for solving the problem.
Term
Rational Approach
Definition
Individual decision making approach by managers which suggests how managers should try to make decisions.
Term
Bounded Rationality Perspective
Definition
Individual decision making approach by managers which describes how decisions actually have to be made under severe time and resource constraints.
Term
Intuitive Decision Making
Definition
An intuitive decision process where experience and judgement rather than sequential logic or explicit reasoning are used to make decisions.
Term
Management Science Approach
Definition
An approach to organizational decision making is the analog to the rational approach by individual managers. Mathematical and statistical techniques applied to problems that are beyond the ability of individual decision makers.
Term
Coalition
Definition
An alliance among several managers who agree about organizational goals and problem priorities.
Term
Satisficing
Definition
Organizations accept a satisfactory rather than a maximum level of performance, enabling them to achieve several goals simultaneously.
Term
Problemistic Search
Definition
Managers look around in the immediate environment for a solution to quickly resolve a problem.
Term
Incremental Decision Process Model
Definition
A decision making approach that places less emphasis on the political and social factors described in the Carnegie model, but tells more about the structures sequence of activities undertaken from the discover of a problem to its solution.
Term
Organized Anarchy
Definition
An extremely organic organization. Organized anarchies do not rely on the normal vertical hierarchy of authority and bureaucratic decision rules. They result from three characteristics: 1) problematic preferences, 2) unclear, poorly understood technology, and 3)turnover.
Term
Problem Consensus
Definition
Refers to the agreement among managers about the nature of a problem or opportunity and about which goals and outcomes to pursue.
Term
Technical Knowledge
Definition
Refers to the understanding and agreement about how to solve problems and reach organizational goals.
Term
Contingency Decision-Making Framework
Definition
Brings together the two dimensions of problem consensus and technical knowledge about solutions.
Term
Inspiration
Definition
Refers to an innovative, creative solution that is not reached by logical means.
Term
Imitation
Definition
Adopting a decision tried elsewhere in the hope that it will work in this situation.
Term
High-Velocity Environments
Definition
Industries where the rate of competitive and technological change is so extreme that market data are either unavailable or obsolete, strategic windows open and shut quickly, perhaps within a few months, and the cost of poor decisions is company failure.
Term
Decision Learning
Definition
A process where managers and organizations acquire sufficient experience and knowledge to perform more effectively in the future.
Term
Escalating Commitment
Definition
Persisting in a course of action when it is failing.
Term
Carnegie Model
Definition
A model of organizational decision making is based on the work of Richard Cyert, James March, and Herbert Simon, who were all associated with Carnegi-Mellon University. Their research helped formulate the bounded rationality approach to decision making, as well as provide new insights about organizational decisions.
Term
Carnegie Model
Definition
A model of organizational decision making is based on the work of Richard Cyert, James March, and Herbert Simon, who were all associated with Carnegi-Mellon University. Their research helped formulate the bounded rationality approach to decision making, as well as provide new insights about organizational decisions.
Term
Garbage Can Model
Definition
Most recent and interesting descriptions of organization decisions processes. It is not directly comparable to the earlier models, because the garbage can model deals with the pattern or flow of multiple decisions within organizations.
Term
Programmed Decisions
Definition
Repetitive and well defined, procedures exist for resolving the problem. They are well structured because criteria of performance are normally clear, good information is available about current performance, alternatives are easily specified, and there is relative certainty that the chosen alternative will be successful.
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