(a) Describe and compare two decision-making model that are likely to be most commonly used by managers in a high pressure, rapidly changing environment. Explain why these two models are most relevant in such an environment?
Answer: Classical Model and Administrative Model
The Classical model based on rational and logical assumptions. It operates to accomplish established goals and defines problems. The manager strives for full informations and evaluates alternatives to maximize the benefit. This model of decision making is considered to be normative, which is the manager knows how the decision should be and not rely entirely on personal preferrence.
Meanwhile, the ...view middle of the document...
They use the assistance of company policies, computations or a set of decision-making guidelines. In addition to being well-structured with predetermined rules regarding the decision-making process, programmed decisions may also be repetitive as their outcome was succesful in the past. In certain condition, managers do not really have to make a decision. For example, the manager decides to order paper when the office’s paper is almost out of stock.
On the other hand, the non-programmed decision are concerned with unique or unusual problems. They are encountered in very non-frequent manner. The decisions are relatively complex and have a long-term impact. They require high degree of executive jugdgement and deliberation. For example, in 2005, Mc Donald’s became aware of a need to respond to growing customer concern regarding foods high in fat and calories. In response, Mc Donal’s decide to offer healthier alternative such as substituing apple slices in Happy Meals for french fries and discontinuing the use of trans-fats.
The diffences between programmed decisions and non programmed decisions:
* Programmed decisions making are usually made in accordance of rules or procedures while the nature problem that requires non-programmed decision is unstructured and unusual. It requires higher level management participation
* There will be minor error in programmed decision making because it is routine and has a guidelines. However the non-programmed decision is likely to have big error because it is more challenging and non-frequent occur
* Programmed decision making is low risk and high certainty because it is a problem that well-structure and happen repetitively in past. Meanwhile non-programmed decision making is high risk and low certainty. The managers will take a long time to make a decision because the manager does not have a guideline to handle the problem.
(c) Choose and identify an organization. Provide examples of two programmed decisions and two non-programmed decisions for the selected organization
- if the raw materials is almost empty the production manager will buy the materials
- if the political condition is stable, Unilever will increase the number of production. If not, unilever tends to decrease the amount of production
- PT Unilever expand the popularity by giving donation to sinabung victims
- PT Unilever increase the selling price because government increase the fuel’s price
(a) Describe each of the five structures and discuss the advantages and disadvantages of functional structure, divisional structure, matrix structure, team and virtual networks.
Functional structure is a structure that consist of activities such as coordination, supervison and task allocation. The term organizational structure refers to how the people in organization grouped and to whom they report. One traditional way of organizing...