Describe the garbage-can model of decision-making
What will be an ideal response?
The garbage-can model of decision-making turns the decision-making process around and argues that managers are as likely to start decision-making from the solution side as from the problem side. In other words, decision makers may propose solutions to problems that do not exist; they create a problem they can solve with solutions that are already available. While an organization's managers must tackle new problems of their own making, at the same time they must also generate alternatives and find solutions to problems that have arisen because of shifts in the environment or strains and stresses that stem from the way it operates. To further complicate decision-making, different coalitions of managers may champion different alternatives and compete for resources to implement their own chosen solutions. Thus decision-making becomes like a "garbage can" in which problems, solutions, and the preferences of different managers and coalitions all mix and contend with one another for organizational attention and action. In this situation, an organization becomes an "organized anarchy" in which the decision about which alternative to select depends on which manager or coalition has the most influence or power to sway other decision makers at that moment. Chance, luck, and timing also come into play in determining which alternative is selected. Often, the problem that is currently generating the most uncertainty for the organization is the one that has the best chance of being acted on, and this may change from week to week. decision-making becomes fluid, unpredictable, and even contradictory as the preferences and priorities of decision makers change.
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Ten years ago a corporation purchased a building for $160,000. At that time, the corporation felt that the business was worth $185,000. The current market value of the business is $460,000
The building has been assessed at $435,000 for property tax purposes. At which amount should the corporation record the building in its accounting records? A) $160,000 B) $185,000 C) $435,000 D) $460,000
Which decision-making tool provides a quantitative evaluation of a choice that is based on the value and probability of outcomes, and accounts for the influence of staged decision making on risk?
a. analytical hierarchy process b. internal rate of return c. Monte Carlo simulation d. decision trees