ÖRGÜT KURAMI VE TASARIMI

Programmed decision-making involves the most efficient and easily repeatable routine operations.

In general, this decision-making mechanism includes a set of written rules and standards that enable the organization to operate in the most efficient manner.

Organizations arrange boards, policies and detailed procedures for decisions to be taken in such repetitive situations.

This type of solution eliminates a very time-consuming process of identifying and evaluating alternatives and making new decisions. Managers, thus, have the opportunity to devote their time to solving included in the resolution of problems that these managers deal with.

What bank should we use? Should we sell bonds or stocks? Should we buy back some of our company’s stock? 

This type of questions are the ones about finance managers, not sales managers.

Rational decision-making steps are as follows:

1. Define problem

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

3. Establish goals that solving the problem should accomplish

4. Identify alternatives that will solve the problem

5. Develop evaluation criteria based on the goals

6. Select a decision-making tool

7. Apply the tool to select a preferred alternative

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

Thinking outside the box, inviting outsiders to look at the problem and create alternatives, asking team members to abstain from their traditional roles, not underestimating mixed choices, being willing to discuss different views are among the tips that manager can benefit to create alternative solutions to a problem.

The rational approach presents a systematic and analytical point of view for managers to make decisions. However, 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. It is also impossible to create a rational model for each decision. Time pressure, internal and external factors affecting decisions, ill-defined problems do not allow a systematic analysis every time. Even if we assume that managers have the cognitive capacity to solve each problem, they cannot evaluate every problem and every alternative.

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.

Intuitive decision-making features individual experience and judgments more than logic and reasoning. Intuitive decision-making is not as coincidental as is thought. What underlies these decisions is that the manager faces similar problems many times and experiences different solutions. Managers act intuitively especially in decisions that must be immediately made. The more intuitive or rational behavior of the manager is sometimes related to his or her disposition.

There are constraints and trade-off experienced during nonprogrammed decision-making processes. 

Bounded Rationality: Limited time, information, resources to deal with complex, multidimensional issues

Organizational Constraints: Need for agreement, shared perspective, cooperation, support, corporate culture and structure, ethical values

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

This model is clearly emphasized to be used in complex organizations where organizational anarchy rules, information flow procedures are uncertain and technology usage is low. Underlying this view, there are assertive behaviors, decisions and practices argued against the rational decision making models. This model, shortly, means “do it before think about it.” Decisions, policies and practices whose results are not searched, traps and disadvantages are not considered are eventually thrown into garbage can.

This model, which tries to combine organizational design and organizational anarchy, states that there is no connection between problems that tried to be solved and solution methods.

Cognitive bias means a tendency to make irrational decisions about other people and situations. Cognitive biases are really common since they are produced by human nature. Habits, educational background, experience, business culture and similar components reflect cognitive bias of decision-maker in organizational decisions. Knowledge level and automatic behaviors of managers and routines are examples of cognitive biases in strategic decisions. Shortly, especially intuitional decisions made by managers are influenced by these biases. Many patterns for bias have been defined in the current literature. The most frequently encountered types of bias in organizational decisions are as follows.

Thanks to certain symptoms, it is possible to understand that a group is closed to different views and away from alternative decisions because of excessive harmony.

• If group members suppose that their decisions are perfect and insist on it,

• If managers are not informed about the arguments supporting the opposing view,

• If group members give more importance to the data supporting their own views and ignore the others,

• If no one tries to consider alternative options,

• If members that do not share the majority’s opinion are excluded,

If symptoms above are to be seen in decision mechanisms of an organization, we can argue that decisions are not made in a healthy way.

The answer to the question of what is the most frequent activity performed by managers in a day on behalf of organizations may be decision-making. In many respects, organizational life is essentially made up of a series of decisions taken on the basis of certain practices and activities. The correct answer is B.

These are the decisions made by production managers. The correct answer is E.

These are the decisions made by sales managers. Accounting managers decide on the answer to the question 'What accounting firm should we use?' The correct answer is C.

Predictability is a feature of programmed decisions. Nonprogrammed decisions are unpredictable. The correct answer is D.

Steps of rational decision-making process:

The correct answer is A.

Rational decision-making process ignores the individual preferences and values of managers not Carnegie decision model. The correct answer is B.

Limited information is available in Carnegie decision model. In rational model, information is available (not limited), decision making is costless and value free. The full range of possible alternatives is generated and solution is chosen by unanimous agreement. The correct answer is E.

Problems, participants, potential solutions, choice opportunities are among the components of the organizational decision-making process. The correct answer is E.

One of the most frequently encountered types of bias in organizational decisions is escalation of commitment and it 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. The correct answer is C.

This model can only be used in cases where organizational anarchy rules, which has THREE structural features: 

The correct answer is B.