Organizational Decision-Making: Theories, Rules, and Bounded Rationality

What is the premise of choice-based theories in decision-making?

They focus on how to get people to carry out policies through rational selection among available options.

What factors complicate decision-making in choice-based theories?

Knowledge of alternatives, knowledge of consequences, discretion provided, knowledge of preferences, and clear evaluation criteria.

What is the theory of bounded rationality?

It suggests that individuals do not engage in perfect calculation but consider a subset of possible choices based on heuristics.

What role does uncertainty play in decision-making?

Uncertainty arises from not having perfect information, leading to ambiguity in decision-making.

What is the significance of 'satisficing' in decision-making?

'Satisficing' refers to selecting an option that meets acceptable criteria rather than the optimal one.

What are rule-based theories in decision-making?

They focus on decision-making based on rules, routines, and procedures rather than evaluating the value of options.

How do rules develop in the context of decision-making?

Rules exist because someone established them, often based on experience and social processes.

What is meant by 'logic of appropriateness' in rule-based theories?

It refers to the decision-making process that considers the context of the decision and the roles of those involved.

What challenges are associated with enforcing rules in decision-making?

It is often easier to state a rule than to enforce it, leading to potential disagreements and conflicts.

What is the importance of stakeholders in decision-making?

Stakeholders influence how rules are matched to situations and the dynamics of group decision-making.

What does the term 'sensemaking' refer to in decision-making?

Sensemaking involves understanding the context and implications of decisions, often influenced by social interactions.

How do preferences affect decision-making?

Preferences are rarely stable and can be influenced by context, leading to incommensurable values.

What is the role of experience in decision-making?

Experience helps individuals classify situations and apply relevant rules effectively.

What is the fundamental question in decision-making according to the notes?

The fundamental question is 'What's the story?' which guides the understanding of the situation.

What is the significance of feedback loops in decision-making?

Feedback loops help individuals learn from outcomes and adjust their decision-making processes accordingly.

What does the term 'bracketing' refer to in decision-making?

Bracketing involves noticing and labeling a subset of possible choices to simplify decision-making.

How does ambiguity affect decision-making?

Ambiguity can lead to uncertainty in preferences and values, complicating the decision-making process.

What is the challenge of identifying rules in decision-making?

Not all situations have identifiable rules, making it difficult to apply consistent decision-making processes.

What is the relationship between rules and social processes in decision-making?

Rules are often shaped by social interactions and the identification of relevant roles and identities.