ÖRGÜT KURAMI VE TASARIMI - Deneme Sınavı - 12

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. Although many decisions by top level managers satisfy them, these ideas may not be that much rational. And despite this possibility, they may have the tendency to show an increasing commitment to their previous decision, which can be seen frequently in top level managers’ decision-making process. According to some explanations, the reason of the commitment to these wrong decisions is the denial of first mistaken decision by the manager himself.

Nonprogrammed decisions:

STEP 1 Define problem

STEP 2
Determine the requirements that the solution to the problem must meet

STEP 3
Establish goals that solving the problem should accomplish

STEP 4
Identify alternatives that will solve the problem

STEP 5
Develop evaluation criteria based on the goals

STEP 6
Select a decision-making tool

STEP 7
Apply the tool to select a preferred alternative

STEP 8
Check the answer to make sure it solves the problem

The rational decision-making approach has been criticized and considered to be non-realistic; thus, it has been argued that this approach should be reviewed and made as practical and realistic as possible because the limited capacity of the manager is insufficient to analyze the complexity of business relations in the modern world and to completely clear up problems.

A manager with limited rationality uses mental methods that simplify the solution and provide shortcuts to make decisions and process information. This is called intuitive decision-making.

Personal Constraints:

Desire for prestige, success; personal decision style; and the need to satisfy emotional needs, cope with pressure, maintain self-concept.

Coalition means a consensus of managers’ decisions about organizational goals and privileged problems.

The Garbage Can Model shortly, means “do it before think about it.

Cognitive bias means a tendency to make irrational decisions about other people and situations.

Process innovation refers to a company’s effort to refine and improve its current processes.

There are four categories of innovation: routine (incremental), radical, disruptive, and architectural innovations.

The majority of product innovations are incremental ones, such as adding an extra blade with each new version of the razor, putting a new and faster chip into the PC, and redesigning an automobile model.

Disruptive innovation requires a new business model but not necessarily a technological breakthrough. For that reason, it also challenges or disrupts, the business models of other companies.

Architectural innovation integrates new business models with new products that are based on new technical knowledge.

Innovation in organization methods for external relationships involves the implementation of new ways of organizing relationships with other firms or public institutions, such as collaboration with public organizations, methods for integration with suppliers, or outsourcing.

Innovators bring forth insights through questioning, constantly challenging the status quo with “why” and “why not” questions to turn things upside-down.

The more different the idea, the more autonomy the project team will require.

Exploration is about invention.