Organizational Decision Making

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Chapter 13 defines organizational decision making, the condition in which decisions are made, and then gives details to some decision making models. Slack and Parent defines decision making through Peter Drucker's definition which is, "a decision is a judgment . . . a choice between alternatives" (258).  Decision making is a large part of whether an organization runs smooth and effective, or if the organization is a "flop".  Slack and Parent gives three conditions in which most organizational decisions are made under, and they are certainty, risk, and uncertainty.  Certainty is the condition that the person in charge knows what all of the alternate decisions are, the costs and benefits of each decision, and all of the alternate outcomes are.  In short certainty is the knowledge that you are making the very best decision for your organization as the person in charge.  Risk occurs when a person is unsure of the benefits and costs that are associated with the decision, such as they do not fully know or understand what they could be gaining or losing.  Uncertainty is when the alternate decisions and their outcomes are both unknown to the decision maker.  There are both individual decision making models and organizational decision making models that are described in this chapter.  The individual decision making models are the rational model and the administrative model.  The organizational decision making models are management science, the Carnegie model, the structuring of unstructured processes, the garbage can model, and Bradford studies. All of the decision making models pertain to different decisions that are made within an organization, meaning that one model would work far better than another model.  The model that I found to be the most interesting is the garbage can model which is an organizational decision making model.  The garbage can model relies on the change that is forever happening within an organization, and that some situations are much more confusing than what they appear to be.  In the garbage can model there are usually four streams of events that have happened or are happening within an organization at the time of decision making.  These streams are a stream of problems, a stream of choice opportunities, a stream of participants, and a stream of solutions.  Slack and Parent says that "the existence of these four streams means that the process of decision making is somewhat random" (267).  All decision making models are important assets to every organization because as I have already stated the decisions that are made within an organization plays a large part in the effectiveness, because if decisions cannot be made appropriately then how can an organization be seen as being effective.