FIKIR KRITIS #3

FIKIR KRITIS category

Decision making in the book Management Information Systems 6th edition by Kenneth C Laudon and Jane P Laudon, Prentice Hall 2000 pp109-120.

1. Levels of decision making
- Strategic Level
- Management Level
- Knowledge Level
- Operational Level

2. Types of decisions
- structured
- unstructured
- semistructured

3. Stages in decisions making – accoding to Herbert Simon
- Intelligence – when the individual collects information to identify problems
- Design – when the individual conceives of possible alternative solutions to a problem
- Choice – when the individual selects among the various solution alternatives
- Implementation – when the individual put the decision into effect and reports on the progress of the solution.

4. Individual models of decision making
- Rational Model – model of human behavior based on belief that people, organizations and nations engage in basically consistent, value maximizing calculations or adaptations within certain constraints.
- Bounded rationality – idea that people with avoid new, uncertain alternatives and stick with tried-and-true rules and procedures.
- Satisficing – choosing the first available alternative to move closer toward the ultimate goal instead of searching for all alternatives and cosequences.
- “muddling through” – method of decision making involving succesive limited comparisons where the test of a good decision is whether people agree on it.

5. Organizational models of decision making
- Bureaucratic model – model of decision making where decisions are shaped by the organizaton’s standard operating procedures (SOP).
- Political Model – model of decision making where decision result from competition and bargaining among the organization’s interset group and key leaders.
- Garbage can model – model of decision making that states that organizations are not rational and that decisions are solutions that become attached to problems for accidental reasons.


Category: FIKIR KRITIS