Organizational Decision-Making

Bounded rationality is a concept that describes the limits of human decision-making due to cognitive constraints, whereas programmed and non-programmed decision-making are types of decision-making processes, and satisficing is a decision-making strategy.

The rational model of decision-making assumes that decision-makers have complete information, can evaluate alternatives objectively, and choose the option that maximizes the organization's utility.

While organizational culture, power dynamics, and environmental uncertainty are factors that influence organizational decision-making, decision-maker's personal preferences are not considered a direct factor.

Programmed decision-making involves making decisions based on established rules, procedures, and routines, in response to routine and predictable situations, without the need for extensive analysis.

Non-programmed decision-making involves making decisions in novel and unstructured situations, where there are no clear rules or procedures to follow, and high levels of uncertainty exist.

Satisficing is a decision-making strategy where decision-makers choose the first alternative that meets a minimum level of acceptability, rather than searching for the best possible alternative or optimizing the decision outcome.

Certainty, risk, and uncertainty are types of organizational decision-making environments, whereas ambiguity is not a specific type of environment but rather a characteristic of decision-making situations where information is incomplete or unclear.

Groupthink is a phenomenon where group members strive for unanimity and conformity, leading to the suppression of dissent and critical thinking, and an illusion of invulnerability and unanimity.

Brainstorming, nominal group technique, and Delphi method are techniques for improving organizational decision-making, whereas groupthink is a phenomenon that can hinder effective decision-making.

The escalation of commitment phenomenon encompasses the tendency to continue investing in a failing course of action despite negative evidence, the sunk cost effect (the influence of past investments on future decisions), and confirmation bias (the tendency to seek information that confirms existing beliefs).

Resistance to change, path dependence, and institutional isomorphism are factors that contribute to organizational inertia, whereas environmental dynamism refers to the rate of change in the external environment and is not a factor that directly contributes to inertia.

Bounded rationality recognizes that decision-makers have limited cognitive resources, simplify complex problems, and make decisions based on incomplete information, leading to satisficing and other heuristics.

Confirmation bias, hindsight bias, and framing bias are types of organizational decision-making biases, whereas bounded rationality is a concept that describes the limits of human decision-making due to cognitive constraints.

Organizational ambidexterity encompasses an organization's ability to balance exploration (seeking new opportunities) and exploitation (refining existing capabilities), adapt to changing environments, and learn and innovate.

Timeliness, accuracy, and transparency are characteristics of effective organizational decision-making, whereas groupthink is a phenomenon that can hinder effective decision-making due to excessive conformity and suppression of dissent.