Organizational Decisions affect the ENTIRE organization; organizational decisions may be made differently than an individual decision. Some decisions are routine (programmed) and others represent situations that have not been handled before (nonprogrammed).
2. Basic Theories include:
a. Classical theory dictates how decisions should be made according to ideal standards under perfect conditions.
b. Behavioral (administrative) theory uses bounded rationality and satisficing, based on the work of Herbert A. Simon.
Review the steps presented in each type of approach, as they differ from one another.
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