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  1. Formal vs Informal
    • Formal- Specific Objectives and Goals
    • Informal- little written down
  2. Why Plan?
    • Provides Direction
    • Reduces impact of change
    • Minimizes waste and redundancy and sets standards to facilitate control
  3. MBO
    Management by Objectives
    • 1) Goals must be specific
    • 2) Manager and subordinates must agree on goals
    • 3) Each objective must have time constraint
    • 4) Provide constant feedback on progress on goals
  4. Process
    • 1) Identify Problem
    • 2) ID decision criteria
    • 3) Develop alternatives
    • 4) Analysis of alternatives
    • 5) Selection of alternative
    • 6) Implement
    • 7) Evaluation
  5. Heuristic-encouraging a person to learn
    Availability vs Representative
    • Available- decisions based on readily available information/internet
    • Representative- look at others who are successful and attach better than average odds.
  6. Contingency approach to Decision Making
    • Programmed- decisions made on well structured routine problems that occur every day
    • Un-programmed- once a while decisions
  7. Decisions making styles
    Directive/Analytic/Conceptual/ Behavioral
    • Directive-Low Tolerance for Indefinite, Rational (men)
    • Analytic- High tolerance for Indefinite, Rational
    • Conceptual- Many alternatives, High tolerance for Indefinite, Long term Solution, Intuitive
    • Behavioral- Intuitive, Low tolerance for Indefinite
  8. Advantages/Disadvantages Group Decision Making
    • -Advantages-
    • more complex info
    • different points of view
    • generate alternatives
    • Higher acceptance of decision
    • Higher legitimacy

    • -Disadvantages-
    • Time
    • Group think
    • Ambiguous responsibility
    • Minority domination
  9. What was Asch Studies?
    G C
    10 student experiment on Group Conformity
  10. 6 elements of Structure in an Organization
    • Work Specialization- each discrete step of a job done by diff. individual rather than 1 indiv. do whole job.
    • Unity of Command- Principle that no employee should report to more than one boss
    • Span of Control - # of employees a manager can effectively and efficiently manage
    • Authority- rights for manager to give orders and expect them to be followed
    • Responsibility- obligation to perform assigned activities
    • Centralization- higher the level where decisions are made
    • Decentralization - decision making authority to lowest levels in organization
    • Departmentalization- grouping of activities in organization by function, product, customer, geography, or process
  11. Departmentalization
    Functional- Group of people who all perform the same function in the same department (Acct. & Fin.)

    Product- Departmentalization focuses on different products within an organization.

    Geographic- Divide area into territories

    Process- Links units around certain skills to complete task

    • Customer- Group organization around certain customers
    • The Matrix
  12. Mechanist

    Organic Organization

    Mechanist- looks for stable environment; Routine; Efficiency;Change is Slow

    Organic-Always Changing; Loose Structure

    Formalization- Deals w amount of rules; Formal; standard operating procedures Ex. Military
  13. Use Strategies for?
    Strategy is to raise revenue or lower your cost to increase profits
  14. Joan Woodard
    Types of Production
    • Unit Production- Organic
    • -Production of Single Units
    • Mass production- Mechanistic
    • Continuous Process Production- Machinery
  15. Drawbacks to Over Planning
    • Creates Rigidity-no freedom to experience better ways
    • Tough to Plan- for a dynamic environment
  16. 10 Characteristics of Organization Culture degrees
    • 1) Member Identity-employee 2 organization
    • 2) Group Emphasis- work activities organized around groups
    • 3) People Focus- Management decisions are focused on employees
    • 4) Unit integration- encouraged to operate in a coordinated, interdependent manner
    • 5) Control- rules, regulations, and direct supervision used to oversee and control employee behavior
    • 6) Risk Tolerance-encouraged to be aggressive, innovative, and risk seeking
    • 7) Reward Criteria- allocation of salary increases/promos, on performance rather than seniority, favoritism, or any other non performance factors
    • 8) Conflict Tolerance- employees encouraged to air conflicts and criticisms openly
    • 9) Means End Orientation-
    • 10) Open Systems Focus-Monitoring and respond 2 changes in external environment
  17. Actions of a Bounded-Rational decision maker.
    • Construct simplified models that extract features from problems w/o capturing complexity.
    • Act rational within the simplified model.
  18. Two types of decision problems and Two types of decisions
    • Well-structured and Ill-Structured.
    • Well-Structured- straightforward, familiar, easily defined, and solved using Programmed decisions such as procedures, rules, and policies.

    Ill Structured are new, unusual or incomplete information that are solved using Nonprogrammed decisions.
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