Holmes Institute: MBA Program
HI 5005
Management and Organisations in a Global Environment

Holmes Institute: MBA Program
HI 5005
Management and Organisations in a Global Environment

Next Week’s Session:

SESSION 6
Decision Making (continued)

• Session 7: not Wed 4th Sept 1:30 – 4:30 but Mon 9th Sept 1:30 – 4:30

Luthens, F. (2005) Organizational Behaviour, 11th ed., McGraw Hill,
New York pp. 345-373

And then the following week

Solomon Asch (1955) Opinions and Social Pressure,
Scientific American, Nov 1955, pp. 31-35

• Session 8 normal Wed 11th Sept 1:30 – 4:30

Milgram, Stanley (1963) Behavioral Study of Obedience, Journal of
Abnormal and Social Psychology, 67 (4): pp. 371-378

Betts R K, Mahnken T (2003) Paradoxes of Strategic Intelligence:
Essays in Honor of Michael I. Handel , Routledge USA

Tversky, A & Kahneman, D (1974) Judgement under uncertainty:
Heuristics and biases, Science #185, September, pp 1124-1131
Arnott D (1998) A Taxonomy of Decision Biases, Technical Report 1/98

Lecture/Assessment Schedule
Week

Topic

Overview Of Managerial Decision Making
Decision-Making Approach
• Rationality
• Bounded Rationality
• Intuition

Assessment
Schedule

1

Foundations of the
Study of Management and Organisations

2

The Nature of Globalisation: National Culture

3

Organisational Culture and Management

4

Organisational Structures and Design

5

Decision Making

6

Decision Making (continued)

Types of Problems and Decisions
• Well-structured / programmed
• Poorly structured/ nonprogrammed

Decision-Making
Process
Decision-Making Conditions
• Certainty
• Risk
• Uncertainty

HALF WAY MARK
Prof Peter Schmidt

Decision
• Choose best alternative - maximising
- satisficing
• Implementing
• Evaluating

Decision Maker’s Style
• Directive
• Analytic
• Conceptual
• Behavioural

Prof Peter Schmidt
© Copyright 2003 Pearson Education Australia

4

1

Overview Of Managerial Decision Making

Overview Of Managerial Decision Making

Decision-Making Approach
• Rationality
• Bounded Rationality
• Intuition
Types of Problems and Decisions
• Well-structured / programmed
• Poorly structured/ nonprogrammed

Decision-Making
Process
Decision-Making Conditions
• Certainty
• Risk
• Uncertainty

Decision
• Choose best alternative - maximising
- satisficing
• Implementing
• Evaluating

Decision Maker’s Style
• Directive
• Analytic
• Conceptual
• Behavioural

Decision-Making
Process
Herb Simon’s Model Henry Mintzberg’s Model
1. Intelligence

1. Identify (Diagnosis: strong on mild but

2. Design
3. Choice

2. Develop (Search and Design  Groping)
3. Select (Judgement (intuition), Analysis (logical),

weak on severe decisions)

Bargaining (politics in the group)
Authorization)

Prof Peter Schmidt
5

© Copyright 2003 Pearson Education Australia

Overview Of Managerial Decision Making

6

Now, look more closely at Decision Making Approach

Decision-Making Approach
• Rationality
• Bounded Rationality
• Intuition

Economic Rationality
Activity Based Costing
Economic Value Added

Decision-Making Approach
• Rationality
• Bounded Rationality
• Intuition

Bounded Rationality (Simon)

Types of Problems and Decisions
• Well-structured / programmed
• Poorly structured/ nonprogrammed

Decision-Making
Process
Decision-Making Conditions
• Certainty
• Risk
• Uncertainty

Prof Peter Schmidt

Decision
• Choose best alternative - maximising
- satisficing
• Implementing
• Evaluating

Decision Maker’s Style
• Directive
• Analytic
• Conceptual
• Behavioural

Prof Peter Schmidt

Satisficing

Intuition




Judgmental Heuristics
Unconscious Biases
Social Model: Influences
 Milgram’s experiment
 Ache’s experiment

Decision-Making
Process

Prof Peter Schmidt
© Copyright 2003 Pearson Education Australia

7

8

2

Overview