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What are the three major phases in Mintzberg’s incremental decision process model? Why might an organization recycle through one or more phases of the model? Give an example in each phase.
Sample Answer
Mintzberg’s Incremental Decision Process Model: Phases and Recyclability
Introduction
Mintzberg’s incremental decision process model suggests that decision-making in organizations occurs in a series of phases rather than as a linear process. This model recognizes that decision-making is often iterative and involves revisiting previous phases. This essay will explore the three major phases in Mintzberg’s model and provide examples for each phase. Additionally, it will discuss why organizations may recycle through one or more phases of the model.
Three Major Phases in Mintzberg’s Incremental Decision Process Model
Identification Phase: In this phase, organizations identify a problem or opportunity that requires a decision. It involves recognizing the need for action and understanding the underlying issues. During this phase, organizations gather information, conduct analyses, and define the problem or opportunity more precisely.
Example: A retail company identifies a decline in sales revenue and customer complaints about long checkout lines. They conduct market research, analyze customer feedback, and identify the problem as inefficient cashier processes and understaffing during peak hours.
Development Phase: In this phase, organizations generate and evaluate alternative solutions to address the identified problem or opportunity. It involves brainstorming, analyzing various options, and considering their feasibility, benefits, and potential risks. The organization develops potential solutions and evaluates their potential outcomes.
Example: The retail company in the identification phase explores several options to improve cashier processes and reduce checkout times. They consider implementing self-checkout kiosks, hiring more cashiers during peak hours, or implementing a mobile payment system. They analyze the cost, impact on customer experience, and feasibility of each option.
Selection Phase: In this phase, organizations choose the best solution from the alternatives developed in the previous phase. They evaluate the potential benefits, risks, and trade-offs associated with each option and make a decision. The selected solution becomes the basis for implementation.
Example: The retail company selects the option of implementing self-checkout kiosks to reduce checkout times. They consider factors such as cost-effectiveness, customer convenience, and potential impact on staffing requirements. After careful evaluation, they decide that self-checkout kiosks offer the best solution.
Recycling Through Phases of the Model
Organizations may recycle through one or more phases of Mintzberg’s model for various reasons:
New Information: New information may emerge during the decision-making process that challenges assumptions or necessitates a reevaluation of the identified problem or potential solutions. Recycling back to the identification phase allows organizations to incorporate this new information into their decision-making process.
Example: After selecting self-checkout kiosks as the solution, the retail company receives feedback from customers indicating concerns about privacy and security when using these kiosks. This new information prompts them to revisit the identification phase to better understand these concerns and explore alternative solutions.
Changing Conditions: External factors such as market dynamics, technological advancements, or shifts in customer preferences may change over time. These changes may require organizations to reassess their decisions and adapt their strategies. Recycling through the development and selection phases allows organizations to explore new alternatives and select a more suitable solution.
Example: The retail company implements self-checkout kiosks but faces technological issues that lead to frequent malfunctions and frustrated customers. They realize that these kiosks are not meeting expectations and decide to recycle through the development phase to explore other options, such as implementing a mobile payment system instead.
Organizational Learning: Organizations may learn from past decisions and their outcomes. Through feedback loops and evaluation of implemented solutions, they may identify areas for improvement or new opportunities for innovation. Recycling through all phases allows organizations to apply lessons learned from previous decisions to enhance their decision-making process.
Example: The retail company evaluates the implementation of self-checkout kiosks and gathers feedback from both customers and employees. They identify areas for improvement, such as better user interfaces and additional staff training. By recycling through all phases, they refine their decision-making process and select an improved solution.
Conclusion
Mintzberg’s incremental decision process model recognizes that decision-making in organizations is often iterative rather than linear. The identification, development, and selection phases provide a framework for understanding how decisions evolve. Organizations may recycle through these phases due to new information, changing conditions, or organizational learning. By embracing this iterative approach, organizations can make more informed decisions and adapt to dynamic environments.
References:
Mintzberg, H., Raisinghani, D., & Theoret, A. (1976). The Structure of “Unstructured” Decision Processes. Administrative Science Quarterly, 21(2), 246-275.
Nutt, P. C., & Wilson, D. C. (2010). Handbook of Decision Making: New Methods and Ideas (2nd ed.). Wiley.
Meissner, P., & Wulf T. (2013). An empirical study on recycling in managerial decision-making processes. Management Decision, 51(3), 533-553.
Hodgkinson, G., & Healey M.P. (2008). Cognition in Organizations. Annual Review of Psychology, 59(1), 387-417.
