Managers, Groups and Decisions

Decision Making: Core Process1950's - Herbert Simon Decision making is management Economists theories of making decisions Assumption Decision making is rational 'Programmable'

Limits of Rationality Non-programmed/programmable decisions Human, not mechanical process Human emotions and limited capacities  Goal of Admin - make it easier Simon's Model Intelligence  Design Choice

What do managers do?Wide range of activities Planning Allocating Problem-solving  Always some decision making Rarely rational planning Lots of little decisions made dailyNegotiating

Groups and Decisions  Full of differences  Making Decisions = Constructing them Conflicting Interests Not always about consensus 

Issues of Communication Varying Perceptions of Problem Incomplete Information People saying what's 'Important' No agreement on ends and means

Groups and the nature of decisions  Acknowledge both rational and non-rational Non programmable  Groups more rational? Non-logical/linear understanding Any decision ever rational?

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