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...
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 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 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
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
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
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.
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