Chapter 12 Disc Questions

# 1.

While making a decision that requires that I choose between several valid options, I usually use intuition and experience. This begins by weighing the pros and cons of every option and choosing the option whose pros outweigh the cons. This is similar to the way managers typically choose between several options. Most managers try to monitor the decision environment, analyze the problem, and later evaluate every alternative. The similarity between my model and that of most managers is that both models identify the essential elements in a problem before choosing an alternative that would solve the problem. 

# 6.

A simple logic stands behind the phrase “an organization never makes big decisions, but rather makes small decisions that add up to a big decision”. To begin with, the task of making decisions in an organization does not rest on a single individual. On the contrary, organizations have decision-making groups that have different and competing responsibilities. Each group makes decisions that suit their responsibilities, only for such decisions to be amalgamated into a single decision that is in line with the objective of the organization (Daft, 2015). 

# 8.

Managers in high-velocity environments worry more about the present than the future because of the high rate of changes in competition and technology. For this reason, current data may be irrelevant in a few days hence managers need to make decisions immediately. Managers working in such an environment are thus more likely to succeed with an intuitive approach as opposed to a rational approach. The intuitive approach is critical where hard data and evidence is unavailable (Daft, 2015). 

# 9.

I once bought IPO shares of a technology company that was doing good. Apparently, the shares had been oversubscribed, and immediately the share price started to drop. I made an intuitive decision to sell all that shares to avoid a loss as opposed to waiting and make a profit in future. Using the same examples, I stayed with the idea of repurchasing the share to avoid failing as I had done before.

References

Daft, R. L. (2015). Organization Theory and Design. Boston: Cengage Learning.