Organization theory and design: Lecture 35

Organization theory and design: Lecture 35 provides students with content about: organizational decision making; management science approach; carnegie model; incremental decision process model; garbage can model;... Please refer to the lesson for details!

Organizational Decision Making

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Organizational Decision Making

• Not on individual basis

• Problem identification and solution

involves many departments, multiple

view points, and even other organizations

• Many factors affect organizational

decision making, such as; internal

Organizational Decision Making

• Four types of organizational decision

making processes:

1 Management science approach

2 Carnegie model

3 Incremental decision process model

4 Garbage can model

Management Science Approach

• Analogous to rational decision making at

individual level

• Management science came into being during

World War II (maths, Physics, OR concepts

applied to help administer and manage military issues)

• Example of torpedoes sinking a vessel – how many different variables like speed, time,

Management Science Approach

• Analysts then jumped in to give a

head-start to management sciences, radars

replaced humans as targeting

• This approach then diffused into other

institutions and corporations and business schools where techniques were studied

and elaborated

Management Science Approach

• Some examples where management science approach has solved organizational problems:

1 Finding right spot for an office/factory

2 Test marketing a new product

3 Drilling for oil

4 Distribution of goods and now telecom services

5 Scheduling of airline employees, ambulance

• Can accurately and quickly solve complex problems involving many variables

• Computer and software technology is

further augmenting the use of

management science approach

• Credit rating scoring by banks on the

expense of human judgment

• Quantitative data are not rich and do not convey tacit knowledge

• It is the man behind the gun