P2 of Organizational Systems

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Definition Comparison with DMP Steps

CONSTRUCT a clear picture what must Identify or define a problem


be decided
COMPILE a list of requirements that Clarify your objectives
must be meet
COLLECT information on alternatives Development of alternatives
that meet the requirements
COMPARE alternatives that meet the Analysis of alternatives
requirements
CONSIDER ‘what might go wrong’ factor Analysis of consequences
for each alternative
COMMIT a decision and follow through Selection of an alternative
with it
Personal Decisions Organizational Decisions
They affect ourselves rather than They pertain to the problems and
others practices of an organization
e.g. choosing brand of PC to order e.g. choosing an advertisement
campaign, acquiring competing firm

Programmed Decisions Non-Programmed Decisions


They are well-structured and They are un-structured and unique in
relatively simple decisions, repetitive nature and are made in response to
and fairly routine. unusual situations and that require
'custom made' solutions
They are generally handed by a They are handled by individual or
routine approach as per established group judgements and creative
guidelines, rules or procedures problem-solving approaches
e.g. handling customer complaints e.g. Developing a marketing strategy
Individual Decisions Group Decisions
They are decisions made by an There are the decisions made by
individual without a group's input or consensus and/ or consultation of a
opinion group of people
This is the more traditional DM They involve the group's
approach. The advantage is to have participation. The advantages are
quicker decisions and a sense of sharing of information and synergy
responsibility (the whole is greater than the sum of
its parts)
The disadvantages are limited The disadvantages are time-
intuition and views. Intuition is consuming and a diffusion of
understanding something without responsibility that results in a lack
reason or proof of accountability
e.g. decisions made by chief e.g. decisions made by board of
executive, managing director governors or directors

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