1. Decision Making
1.1. respond to opportunities and threats by analyzing options and making determinations
1.2. Two kinds
1.2.1. Programmed
1.2.1.1. Many times
1.2.1.2. Have rules or guidelines
1.2.2. Nonprogrammed
1.2.2.1. Unpredictable situations
1.3. Based on
1.3.1. Intuition
1.3.1.1. Immediately
1.3.1.2. Lack of information
1.3.2. Reasoned Judgement
1.3.2.1. Takes time for analyzing and alternatives
2. The Administrative Model
2.1. Definition
2.1.1. Explain why risk and uncertainty always exists in making decisions
2.1.2. Explain why managers usually choose satisfactory instead of optimum
2.2. Bounded Rationality
2.2.1. Cognitive limitations
2.3. Incomplete Information
2.3.1. Includes
2.3.1.1. Can't name all of the alternatives
2.3.1.2. Consequences are uncertain
2.3.2. Cause
2.3.2.1. Uncertainty and risk
2.3.2.1.1. Risk
2.3.2.1.2. Uncertainty
2.3.2.2. Time constrains and information costs
2.3.2.2.1. Have not enough time and money
2.3.2.3. Ambiguous information
2.3.2.3.1. Can be interpreted in many ways, sometimes in conflicting ways
2.3.2.4. Satisficing
2.3.2.4.1. Searching and choosing an acceptable, satisfactory rather than an optimum one
3. The Classical Model
3.1. Mention all alternatives and consequences
3.1.1. Decide rationally
3.2. Optimum Decision
3.2.1. Give the most desirable consequences
3.3. Figure
3.3.1. List
3.3.1.1. Assume all information and available alternatives
3.3.2. Rank from least to best based on personal preference
3.3.2.1. Assume the manager have this ability
3.4. Select the one leading to desired future
3.4.1. Assume the manager know what is the best for organization
4. Steps in the Decision-Making Process
4.1. Recognize the need
4.2. Generate alternatives
4.3. Assess alternatives
4.4. Choose
4.5. Implement the chosen
4.6. Learn from feedbacks
5. General Criteria for Evaluating Possible Courses of Action
5.1. Legal
5.1.1. Ethical
5.1.1.1. Economical
5.1.1.1.1. Practical
6. Group Decision Making
6.1. Advantages
6.1.1. Superior than individual
6.1.2. Less to victim or biased
6.1.3. Able to draw combined skills of members
6.1.4. Feasible alternatives
6.1.5. More information
6.2. Managers affected by decisions agree to cooperate
6.3. Groupthink
6.3.1. Members try to avoid arguments instead of accurately assessing information
6.4. Devil’s Advocacy
6.4.1. To defend unpopular alternatives for the sake of argument
6.5. Diversity among Decision Makers
6.5.1. Less probability of leading to groupthink
6.5.1.1. Differ to each other already
6.5.1.2. Not the similar pressures
7. Organizational Learning and Creativity
7.1. Organizational Learning
7.1.1. Managers seek to improve employees’ desire and ability
7.1.1.1. Understand and manage the organization and its task environment
7.2. Learning organization
7.2.1. Maximize the ability of individuals and groups to think and behave creatively
7.2.2. Maximize organizational learning
7.2.3. Senge's Principles
7.2.3.1. Develop personal mastery
7.2.3.1.1. Allow employees to create and explore
7.2.3.2. Build complex, challenging mental models
7.2.3.2.1. Challenge employees to find new, better methods to perform a task
7.2.3.3. Promote team learning
7.2.3.3.1. Since decisions are made in group mostly
7.2.3.4. Build shared vision
7.2.3.5. Encourage systems thinking
7.2.3.5.1. Knowing and understanding how actions in one area of the firm will impact other areas of the firm
7.3. Ability to discover original and novel ideas that lead to feasible alternatives
7.4. Creativity
7.4.1. Promoting Individual Creativity
7.4.1.1. Conditions
7.4.1.1.1. Opportunity and freedom to generate new ideas
7.4.1.1.2. Opportunity to experiment and learn from mistakes
7.4.1.1.3. No punishment
7.4.1.1.4. Constructive feedbacks
7.4.1.2. Brainstorming
7.4.1.2.1. face-to-face meeting
7.4.1.2.2. No comments until all ideas are listed
7.4.1.2.3. Encourage members to be innovative and radical as much as possible
7.4.1.2.4. Discuss about pros and cons of each and create a short list
7.4.2. Building Group Creativity
7.4.2.1. Production Blocking
7.4.2.1.1. Loss of productivity in brainstorming sessions
7.4.2.2. Nominal Group Technique
7.4.2.2.1. Write down ideas
7.4.2.2.2. Tell the whole group
7.4.2.2.3. Rank
7.4.2.3. Delphi Technique
7.4.2.3.1. Not face-to-face
7.4.2.3.2. Writing answers for the leader's questions
8. Entrepreneurship and Creativity
8.1. Social Entrepreneur
8.1.1. An individual
8.2. Intrapreneur
8.2.1. Entrepreneur
8.2.1.1. Work inside an organization and notice opportunities to develop new or improved products and better ways to make them
8.2.1.2. An individual
8.2.1.3. Notice opportunities and decide how to mobilize the resources necessary to produce new and improved goods and services
8.2.1.4. Pursue initiatives and opportunities and mobilize resources to address social problems and needs in order to improve society and wellbeing through creative solutions
8.3. Entrepreneurship
8.3.1. Mobilization of resources to take advantage of an opportunity to provide customers with new and improved goods and services