Decision-Making: The Administrative Model
Decision-making can be defined as the process of recognizing and selecting options on the basis of the values as well as inclinations of the individual who is making the decision…
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An important consideration in decision-making is that an individual involved in the process would try to identify the utmost number of alternatives available to him and then subsequently select the one that is the most suitable with regards to his objectives, aspirations and goals (Rassin, Muris, Booster & Kolsloot, 2008). A decision-making process can be categorised into a number of stages. The initial stage of the decision-making requires defining the problem, following which one needs to ascertain the necessities that the answer to the problem should meet. This stage is also referred as formulation. The subsequent stage requires the determination of goals that should be achieved by means of solving the problem. The following stage requires the identification of options that would resolve the problem. The next step involves building up the assessment criteria with the consideration of the goals, following which one needs to choose a decision-making mechanism. The subsequent step of decision-making is the appliance of the mechanism to choose an ideal alternative i.e. implementation of the best possible alternative. Finally, one needs to confirm whether the chosen alternative resolves the problem successfully and efficiently (Baker, Bridges, Hunter, Johnson, Krupa, Murphy, & Sorenson, 2001). Models of Decision-Making The two popular models of decision-making are the rational economic model as well as the administrative model. The rational economic model of decision-making is a prescriptive model based on a normative approach. The rational economic model recommends how an individual or an organization should make decisions. On the other hand, the administrative decision-making model is a descriptive model, which proposes how decisions are essentially made (Lewis, Goodman, Fandt & Michlitsch, 2006 ). Rational Economic Model The essential foundation on which the rational economic model is based is that the process of decision-making would be rational, methodical and coherent. The assumptions associated with the rational economic model states that comprehensive and perfect information is obtainable for decision-making. Moreover, there exist agreed upon goals as well as a set of optional routes of action. Furthermore, the rational economic model assumes that the decision makers function for the best interest of the organization and there are no ethical quandaries in the decision-making process (Griffin & Moorhead, 2011). It is implied from the assumptions of the rational economic model that this decision model does not take into account and also does not deal with the influences that have an effect on the decision environment. The rational economic decision model does not depict how managers essentially make decisions. On the contrary, this model makes available guiding principles to assist organizations or groups to arrive at an ideal conclusion (Griffin & Moorhead, 2011). As a result, in reality the rational economic model might not be a practical representation of managerial behaviour at all times. This is because it is very difficult to meet all the assumptions of the rational economic model. Firstly, decision makers hardly ever have access to total and ideal information. Secondly, even though all information related to the feasible options were accessible, individuals would be able to understand and process huge quantities of information to a certain limit only (Rassin, Muris, Booster & Kolsloot, 2008). Moreover, decision makers rarely possess sufficient knowledge about the upcoming outcomes of the available alternatives. Furthermore, in majority of the decision-making scenarios, several factors, for instance attitudes, behaviours or motives,
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