FARMING A GOOD DECISION (CASE SOLUTION)
Farming a Good Decision Decision – Case Study Answers/Solution
- What types of problems and decisions do you see MOMA managers dealing with in this story? Explain your choices.
The problems that the managers are dealing with in this story have characteristics of poorly structured ones. They’re poorly structured in that the problems are new or unusual and for which information is ambiguous or incomplete. The museum personnel have not undergone a project of the size and complexity such as this expansion. And even just since beginning the project, many previously agreed-upon aspects of the project, that is, architectural design and construction costs, have changed dramatically. Because the problems are poorly structured, managers have to use non programmed decisions. - How might each of the following be used in the decisions that had to be made in pursuing the museum expansion: (a) perfectly rational decision making; (b) bounded rational decision making; and (c) intuition?
Perfectly rational decision making might be used as the company decided on quantifiable problems that had a limited number of possible outcomes, such as what admission price to charge after the museum reopens with its expanded space. Bounded rational decision making might best be used as managers made construction, relocation, or funding procurement decisions. Intuitive decision making might best be used as the company’s decision makers decided on a whether or not the museum clientele will support a museum whose stated mission is “To be the No. 1 modern museum in the world.” - Would you characterize the decision conditions surrounding MOMA’s expansion decision as certainty, risk, or uncertainty? Explain your choice.
The decision conditions surrounding the MOMA expansion are best characterized as uncertainty. In other words, the managers face decision-making situations where the choice of alternatives is influenced by the limited amount of information available.