Module Review Questions
Module Review Questions
What is the difference between programmed and nonprogrammed decision making? Describe the Classical and Administrative Models of Decision-making. Why did the conceptualizers of the Administrative Model believe it was a more accurate description of how decisions are made?
The decision making process in business can be usually described as the choice of the best alternative, which can lead to the greatest benefit for the company. The programmed decision making is associated with the daily routine a manager faces every day. This means that programmed decisions are generally easy to make as a manager made the same decision many times before whereas non-programmed decision making is related to the unexpected and unpredictable events in the company operational activity. Such decisions are not specified in the rules as they are made in response to new circumstances. The Classical model of decision making is a prescriptive model which envisages that a manager can identify and evaluate all the possible alternatives, their causes and effects and then rationally pick the optimum decision. The administrative model is more practical and suggests that the decision making process is rather uncertain and manager make satisfactory decisions but not always the optimum ones. Administrative model can serve as a more accurate one because managers cannot take into consideration all the factors. Besides, the decision process is limited with their cognitive abilities. The information for the decision making is usually incomplete.
Describe the six steps in effective decision-making.
There are six important steps in the effective decision making: recognizing the need for a decision, generating the alternatives, evaluation of alternatives, choosing among alternatives, implementing the chosen alternative and learning from the received feedback. During the first stage managers realize the necessity of making the decision. The second step requires brainstorming to find good alternatives. The third and fourth steps are related to the evaluation and assessing benefits and disadvantages of every alternative. It is important to realize whether the decision fulfills the legal, ethical, economic and practical requirements. The fifth step is vital because in many cases the decision is not implemented. The last step suggests the monitoring and possible adjustments of the made decision.
The main advantages of the group decision making are the ability to reduce the cognitive biases and provide more ideas using the combination of group skills and abilities. However, the group decision making has its disadvantages when all members of the group are supporting the leading manager without considering other alternatives. Also, every person in group should be convinced in order to implement decision. In order to improve the group decision making it is important to have a person who play a Devil’s advocacy role or supports unpopular decision with valuable arguments. Also, the groupthink can be avoided when individuals have diverse life experience and opinions.
Define organizational learning. How can managers insure that they create a “learning organization”? What are ways of promoting individual and group creativity within an organization?
Organizational learning exists because managers want to improve the desire of employees to understand and manage the organization. These measures increase effectiveness. The organizational learning can be defined as measures taken in order to increase the workers awareness of the organizational management. Learning organization can be created by manager’s self-improvement, creating complex mental models, developing shared vision, encouraging system thinking and team learning.
What is the difference between entrepreneurship and intrapreneurship? How can managers promote organizational learning and entrepreneurship?
The entrepreneurship is the ability and desire to develop, found and manage a business understanding and taking into account all the risks. The intrapreneurship is the act of behaving like an entrepreneur working in a big organization. Intrapreneurship is focused on the creativity and innovation and should be supported by the managers. They should provide their employees with the possibility of taking risks. Also, the brainstorming activities should take place. Creativity should be also promoted at global level.
Reference
TILTatCSU. (2015, Dec 11). NRRT 620 Learning Module 3 [Video file]. Retrieved from
https://www.youtube.com/watch?v=nIKu66AXeao
