ADMI500 MANAGING ORGANIZATIONS
AGMU
JANUARY 2024
3RD WEEK
I.
II.
Decision Making and Innovation
1. Decision making as a rational process, which includes the
analysis of programmed and unscheduled decisions
2. The importance of creativity and innovation in management
3. The nature of the entrepreneurial spirit and intrapreneurs, taking
into consideration the key aspects and limitations of
reengineering
Organizational Structure
1. Basic models of the organizational structure of traditional,
global, and virtual companies
2. The nature of centralization, decentralization, and delegation of
authority at the different levels of the organization
3. The importance of defining, promoting, and developing a clear
and appropriate organizational culture
CONTENT:
I.
Decision Making and Innovation
1. Decision making as a rational process, which includes the
analysis of programmed and unscheduled decisions.

What is Decision Making in Management?
Decision making in management is the process of making a choice
between two or more options. (Davis, 2023). This involves evaluating the
pros and cons (advantages and disadvantages) of various alternatives and
selecting the best choice to reach an anticipated result. In management,
decision making is about acting in a way that meets organizational goals
and objectives.
According to Davis (2023), in the realm scenario’s a business manager
may determine to invest in marketing to attract new clients. This decision
could comprise analyzing the costs, benefits, and risks involved with each
potential course of action and choosing the best path of action for the
organization.
Managing decisions are an important part of management at any
organization. On his blog, Davis stated, managing decisions lets managers
set goals and diagram what actions are required to meet those goals and
assess whether those actions are performing as projected. Management
decision refers to managers leading their organizations down the right path
toward success story.
Kevin D. Davis (2023, September 1). Decision Making in Management: Importance,
Type, https://www.knowledgehut.com/blog/project-management/decisionmaking-in-management#:~:text=Blog%20Author,04th%20Sep%2C%202023

Characteristics of Decision Making
ADMI500 MANAGING ORGANIZATIONS
AGMU
JANUARY 2024
3RD WEEK
1. Rational thinking
Rational thinking is a process in management decision making that aids us
to make common sense (significant) decisions. It encompasses
methodically analyzing options and choosing the best course of action
grounded on sense (logic) and facts. To think rationally, we need first
detect our goals and objectives (Davis, 2023)
2. Process
Many people perceive decision making as a cold, rational practice.
Conversely, there is much more to it than easily choosing the most logical
option. Decision making is induced by a variety of factors, both conscious
and unconscious. For example, our feelings play a role in the decisions we
make, as do our particular (personal) values and beliefs.
3. Selective
A key characteristic of managerial decision making is that it is selective
(Davis, 2023). That is, deciding involves picking the best options. There
are many factors that influence what gets selected, including the
transparency of the options, the relevance of the decisive factor, and
weighing the various factors.
4. Purposive
A purposive method to decision making is one that is based on the known
factor goals and objectives of the individual or organization. In research,
purposive sampling is also known as judgment or selective sampling
(Calcador, 2017). It refers to a research methodology where researchers
deliberately choose participants based on their own judgment and criteria.
A manager plays the role of a case study researcher who seeks to
understand why and how participants perceive events and make decisions
(Yin, 2014).
Miles (2013) stated case studies are an appropriate approach to exploring
real-life situations. This approach includes the researcher’s opinion and
decision-making in selecting individuals for the study, making it a nonprobability sampling method. The approach of decision making takes in
consideration the anticipated or desired outcome of the decision and
considers all the available options to select the best possible course of
action (Davis, 2023).
5. Positive
According to Davis (2023), decision making process in management is an
important skill in any area of life, whether you're deciding what to eat for
dinner or deciding which company to work for. While there are many
different approaches to decision making, there are some common
characteristics that tend to lead to positive outcomes.
6. Commitment
ADMI500 MANAGING ORGANIZATIONS
AGMU
JANUARY 2024
3RD WEEK
If you want to make effective decisions, it is critical that you have
commitment. This means having the drive to see the decision through,
even when it gets challenging. It also means being capable of upholding
your decision to others, even if they do not agree with you (Davis, 2023).
7. Evaluation
According to Davis, evaluation is a key characteristic of good decision
making. This comprises considering all the options and evaluating their
pros and cons before making a choice. It is important to be as objective as
possible when evaluating the different opportunities, and to look at the
situation from all angles.

What is Decision Making Process?
The decision-making process could be defined as a representation system
for the description of decision alternatives and decision rules (Sevenson,
1979). For Davis (2023), decision making in operations management is the
process of choosing among alternatives. It involves considering various
factors, weighing the costs and benefits of each alternative, and making a
decision that takes these factors into account. The ultimate goal of the
decision-making process is to achieve a conclusion that is as informed as
possible given the existing data.
Ola Svenson, Process descriptions of decision making, Organizational Behavior and
Human Performance, Volume 23, Issue 1,1979, Pages 86-112, ISSN 00305073, https://doi.org/10.1016/0030-5073(79)90048-5.es
2. The importance of creativity and innovation in management
Creativity and innovation management is the process of comparing
creativity and innovation in the workplace. Creativity involves
producing original ideas, while innovation is about executing those
ideas to create value.
Creativity can help develop new ways to improve existing products
or services. Thus, creativity then helps businessperson think
outside the box and further than conventional solutions. As Michale
Porter’s five forces, differentiation is key element to penetrate and
sustain a profitable operation in the market (Porter, 2017).
ADMI500 MANAGING ORGANIZATIONS
AGMU
JANUARY 2024
3RD WEEK
Porter, M. (2017). Strategy: Creating and Sustaining Competitive Advantage.
Keynote Speech on Strategy. Institute for Competitiveness, India. Available
at: https://www. youtube. com/watch.
3. The nature of the entrepreneurial spirit and intrapreneurs, taking
into consideration the key aspects and limitations of
reengineering