Verified Document

Decision-Making Model Analysis Term Paper

Administrative model is defined as "a decision-making model that describes how managers actually make decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity" (Daft 1999, p. 284). This approach to decision-making recognizes that not all decisions are able to be considered and judged based on quantitative methods. While it may be preferred that decisions be made by a process where the outcomes are known and can be compared, it is not always possible to know the outcomes. For these types of decisions, a new kind of model is needed that takes into account the uncertainty. This model is the administrative model. Herbert A. Simon is the founder of the administrative model. He considered the economic model of decision-making and noted that one major element was missing. This element was the human element. Taking the human element into consideration, Simon rejected the idea that people make decisions based on rational choices. Instead, he argued that people are limited in their knowledge and in their ability to think rationally. He describes this in his paper titled "Rational Decision Making in Business Organizations" where he argues that people are not capable of making decisions based on perfect rationality. As he states,

" ... The assumption of perfect rationality - are contrary to fact. It is not a question of approximation; they do even remotely describe the processes that human beings use for making decisions in complex situations" (Simon 1979, p. 510).

He then proposed the term bounded rationality to explain how people really make decisions. Bounded rationality is defined as "the concept that people have the time and cognitive ability...

284). Simon also expanded on this by stating that people do not find the best possible solution. Instead, they satisfice. This means that they choose the first decision that satisfies minimal criteria, regardless of whether there might be better solutions.
Another important aspect of Simon's approach was based on recognizing that people do not make decisions in isolation. The classical model suggests that everyone is focused on the overall needs of the organization. In reality, people are as likely to be more concerned about themselves than the organization as a whole. This means that anyone making a decision in an organization is impacted by how it will impact the other members of the organization. Simon argued that individual decisions are actually made in competition with other people in the organization. This refers to the fact that every decision made will probably involve somebody in the organization losing something. This human element than becomes a factor in the decision making. For example, if the person losing out is someone of power or influence in the organization, the individual may factor this into their decision-making and reject a decision that negatively impacts this person. This example illustrates that decisions are not made in isolation, but impact on other people. In turn, this impact can become a factor in the actual decision-making process.

As an example of using the administrative model, consider a case where someone needs to decide which database system to implement. The first point to note is that this is not a decision where unlimited time and resources will…

Sources used in this document:
Bibliography

Daft, R.L. (1999). Management. Fort Worth, TX: Dryden Press.

Simon, H.A. (1979). Rational decision making in business organizations. American Economic Review, 69, 493-513.
Cite this Document:
Copy Bibliography Citation

Related Documents

Decision Making Models Napoleon Once
Words: 1352 Length: 3 Document Type: Term Paper

SWOT analysis is very instrumental at this stage. One can also employ the use of well structured questionnaires so as to achieve broader and a deeper scrutiny of a problem or situation. d). Developing options At this stage one should come up with several probable options to the solution of a problem. Creativity is of essence here since it will help narrow down to the fewer most probable decision options. As

Decision-Making Model
Words: 955 Length: 3 Document Type: Term Paper

Decision Making Model Decision making is an important everyday activity which can have far-reaching implications on personal and business matters. People face challenging situations often that require them to make decisions. These decisions usually follow a pattern that has something to do with an individual's personal values and beliefs. Ethical decision making model is one of the most commonly used models today because it takes into account the interests of others.

Decision Making Model Decision Making Is Defined
Words: 1672 Length: 5 Document Type: Term Paper

Decision Making Model Decision making is defined as the cognitive process of selecting a course of action from among multiple alternatives (Wikipedia, 2004). Effective decision making, however, is contingent on an individual or group's ability to select the course of action, which is most likely to result in goal or task accomplishment. In the business world, this is easier said than done since most decisions involve taking into consideration a myriad

Decision Making Model, Called As
Words: 593 Length: 2 Document Type: Term Paper

Therefore, decision makers evaluate only a reasonable number of alternatives and choose the best one from their comparisons (Kantrow, 1987). A made a similar decision based on the rational decision making model. When recently, I decided to buy a car, I knew that I had a problem, since without using car it was taking many hours from work to the home. Therefore, I was able to identify the problem. In

Decision Making Model That Will
Words: 830 Length: 3 Document Type: Term Paper

As in any merger, the organization would have to deal with human resource issues (because the verification process was double-performed, one of the two teams needs to be reapplied within the organization), financial issues, etc. The third option would be to create a sole compartment to deal with the verification process, a compartment that would employ human resource from both the ECFMG and the EICS. This compartment would deal only

Decision-Making Model
Words: 367 Length: 1 Document Type: Term Paper

Facilitators Team, 12-06-02. Decision Making Model, The Team Handbook, pp.4-20 -- 4-25. Retrieved 9-16-05, from Facilitators Team. http://www.lib.umd.edu/groups/learning/Decision-MakingModel.pdf Roberts, Rick, unknown. 7-Step Decision-Making Model. Retrieved 9-16-05, from University of North Florida.

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now