HRLR 2030 EXAM 2 STUDY NOTES
CHAPTER 11
- Decision making: making choices among alternative courses of action which may include
inaction
- Most decisions don’t follow the rational decision model. Most decisions are made by
judgement than a prescriptive model and people are unaware of making suboptimal
decisions
- Increasing effectiveness in decision making is an important part of maximizing your
effectiveness at work
- Types of decisions:
o Programmed decisions: making simple and habitual, straightforward decisions.
These decisions don’t require a lot of thought or take much time. They occur
frequently enough that we develop an automated response to them
§ Decision rule: The automated response we use to make programmed
decisions
o Non-programmed decisions: unique and important decisions that require
conscious thinking, information gathering, and careful consideration of
alternatives
o Strategic decisions: decisions that set the course of an organization
o Tactical decisions: decisions about how things will get done
o Operational decisions: decisions that employees make each day to make the
organization run
Level of Who Typically Makes
Examples of Decision
Decision Decisions
, Should we merge with another company?
Strategic Top Management Teams, CEOs,
Should we pursue a new product line?
Decisions and Boards of Directors
Should we downsize our organization?
What should we do to help facilitate employees
Tactical from the two companies working together?
Managers
Decisions How should we market the new product line?
Who should be let go when we downsize?
How often should I communicate with my new
coworkers?
Operational Employees throughout the
What should I say to customers about our new
Decisions organization
product?
How will I balance my new work demands?
- Rational decision-making model: describes a series of steps that decision makers should
consider if their goal is to maximize the quality of their outcomes
o If you want to make sure that you make the best choice, going through the formal
steps of the rational decision-making model may make sense
, o Analysis paralysis: a condition in which more and more time is spent on gathering
information and thinking about the problem/situation, but no decisions actually
get made
- The bounded rationality model of decision making: recognizes the limitations of our
decision-making processes.
o Problems do not have an optimal solution because they are complicated
o According to this model, individuals knowingly limit their options to manageable
set and choose the first acceptable alternative without conducting an exhaustive
search for alternatives
o An important part to this model is the tendency to satisfice
§ A term that came from satisfy and suffice referring to accepting the first
alternative that meets your minimum criteria. Solutions that are
satisfactory and sufficient
- The intuitive decision-making model: an alternative to other decision-making processes.
Refers to arriving at decisions without conscious reasoning
CHAPTER 11
- Decision making: making choices among alternative courses of action which may include
inaction
- Most decisions don’t follow the rational decision model. Most decisions are made by
judgement than a prescriptive model and people are unaware of making suboptimal
decisions
- Increasing effectiveness in decision making is an important part of maximizing your
effectiveness at work
- Types of decisions:
o Programmed decisions: making simple and habitual, straightforward decisions.
These decisions don’t require a lot of thought or take much time. They occur
frequently enough that we develop an automated response to them
§ Decision rule: The automated response we use to make programmed
decisions
o Non-programmed decisions: unique and important decisions that require
conscious thinking, information gathering, and careful consideration of
alternatives
o Strategic decisions: decisions that set the course of an organization
o Tactical decisions: decisions about how things will get done
o Operational decisions: decisions that employees make each day to make the
organization run
Level of Who Typically Makes
Examples of Decision
Decision Decisions
, Should we merge with another company?
Strategic Top Management Teams, CEOs,
Should we pursue a new product line?
Decisions and Boards of Directors
Should we downsize our organization?
What should we do to help facilitate employees
Tactical from the two companies working together?
Managers
Decisions How should we market the new product line?
Who should be let go when we downsize?
How often should I communicate with my new
coworkers?
Operational Employees throughout the
What should I say to customers about our new
Decisions organization
product?
How will I balance my new work demands?
- Rational decision-making model: describes a series of steps that decision makers should
consider if their goal is to maximize the quality of their outcomes
o If you want to make sure that you make the best choice, going through the formal
steps of the rational decision-making model may make sense
, o Analysis paralysis: a condition in which more and more time is spent on gathering
information and thinking about the problem/situation, but no decisions actually
get made
- The bounded rationality model of decision making: recognizes the limitations of our
decision-making processes.
o Problems do not have an optimal solution because they are complicated
o According to this model, individuals knowingly limit their options to manageable
set and choose the first acceptable alternative without conducting an exhaustive
search for alternatives
o An important part to this model is the tendency to satisfice
§ A term that came from satisfy and suffice referring to accepting the first
alternative that meets your minimum criteria. Solutions that are
satisfactory and sufficient
- The intuitive decision-making model: an alternative to other decision-making processes.
Refers to arriving at decisions without conscious reasoning
