Effectiveness of Different Models of Decision-Making - Coursework Example

Effectiveness of Different Models of Decision Making Course: Essay Title: Student Name and ID: Tutor’s name: This paper shall mainly focus on discussing the models of decision making that are used in the organisations, the challenges that are associated with the decision making in the organisations as well as the description of the major organisational decision while justifying the decision making model that best describes the way decision making is carried out in the organisations. In the organisation setting the managers need to make decision in order to implement the changes that are required in the organisation as suggested by the various stakeholders. Therefore, the mangers make the decision suing various models as discussed below: The Rational Model: This model of decision making is majorly centred on the rationality of the best choice available. The best choice is the one that will bring the organisation maximum value in the utilisation of the scarce resources that are available to the organisation. The manager in this model of decision making is considered to be a very objective and a well-informed individual who is capable of choosing the most effective alternative while ensuring maximum utilisation of whatever kind and amount of the output that the manager feel are of value to the organisation (Heller, 1992). The rational decision making model utilises the following sequences while arriving at the desired solution within the organisation. Problem or opportunity identification The first crucial step in the recognition of a problem or the sighting of the opportunities or the prospects that is worthwhile to the organisation. This rational decision making model is best applicable where there is need to make comparatively complex decisions in the organisation. In order for the manager to make a well informed decision she or he need to look at the situation at hand and be able to determine whether she or he have a decision to make or a problem to solve. Information gathering The manager need to gather information about the situation at hand in order to be able distinguish between the relevant information from the irrelevant one. This helps the manager to be able to make the decision effectively and make an informed decision for that matter. The gathering of information assists the manager while she or he is making the decision as well as to be able to make the right decision (Heller, 1992). Situation analysis This step of rational decision making helps the manger to be in a position to determine the alternative courses of actions that available to her or him when making the decision. It also helps the manager to be able to view the different analyses of data that are likely while considering the problem at hand. Option development This step of rational decision making helps the manger in generation of various possible decisions that are available. It also helps her or him to very innovative and positive about the situation that faces her or him within the organisation. Alternatives evaluation During this step the manager gets to determine the standards in which she or he will use in the evaluation of the alternatives that are available. The evaluation is done so as to enable acceptability, feasibility as well as the desirability of the alternatives that are available to the manager in the organisation. The evaluation of the alternatives also helps the manager in a very significant way to be able to determine which of the available alternatives will help her or him to achieve the laid down objectives within the organisation (Brattton & Gold 1999). Selection of the preferred alternative This step helps the manager to be in a position to explore the temporary preferred alternative so as to check for future potential adverse significances. The manager is able to determine the problems that might be created be created by the alternative that have been chosen at that particular time in order to address the situation at hand. The manager is also able to determine the risks that are associated with the decision that is made at that particular time on order to address the situation at hand (Heller, 1992). Implementation of the decision made During this step the manger gets to put in place a plan that focuses on the implementation of the decision that has been agreed upon by the manger and other stakeholders. The manager also gets to determine whether he or she has put in place enough resources that are required in the implantation of the decision made. The manager is also able to evaluate and check how the decision made is received by the colleagues and whether they support it or not. He or she also gets to check and evaluate whether the colleagues as well as the employees are committed to ensuring that the decision made work (Hodgkinson & Starbuck, 2007). The rational model of decision making within the organisations faces a lot of challenges such as the following, Failure to have enough information: The managers fail to have enough information that is applicable to the problem at hand. For instance, according to this model the manager is supposed to gather information first before proceeding to solve the problem. Due to the constantly changing managerial environment and also due to the fact that management is new discipline there are few books that are available concerning this discipline, therefore, it becomes Hard for the mangers to get the information the is useful (Shapira, 2002). The changing nature of the problem: The managerial problem has a tendency to keep on changing within a very a short period. This therefore makes it hard for the mangers utilising this model to plan in advance and keep utilising the same model to solve the problems that arises within the organisation. The mangers rarely have adequate time or finances that are required to critically evaluate all the alternatives as well as predict the consequences of the decision made. This therefore poses a very great challenge to this model of decision making. The Administrative Model: This model of decision making looks at the decision makers as individuals who have varying amounts of motivation and are overwhelmed by stresses and have very limited time to make the managerial choices and therefore pursue shortcuts that will help them find the suitable solutions. In the administrative model of decision making, the manager does not necessarily have to attempt to optimise the value of the decision made but instead seeks to search for the first alternative that have an acceptable value. The manager always seeks to find the options that lead to satisfaction (Shapira, 2002). Even if the satisfaction may lead to reduction in the quality of the decision made, it always saves time and effort. Satisfaction is considered as a dynamic construct therefore, the levels of aspiration of the manager and the overall number of alternatives that are used to determine what is acceptable, feasible and desirable solution. Satisfaction in most cases it has been considered as an appropriate that is rational strategy whenever the cost of postponing a decision or whenever the search for further alternatives is considered high in respective to the probable payoff of the allegedly greater alternative (Brattton & Gold 1999). Whenever the right choice has been arrived at the desired solution to the perceived problem has been implemented and the manger has found it to be suitable, the organisation therefore institutionalises the used process so that it can be used to resolve the problem into a standard operating process. The standard operating process are considered to be the main practices, programs and the rules that are in most cases used by the mangers in order to gain adequate time and avoid the tedious task of beginning to resolve the problem all over again from the start. In some instances the mangers tends to use the standard operating process whenever the organisation is faced with a similar or related but not the same problem or identical to the one the standard operating process had solved initially (Mathis & Jackson, 2007). The administrative model of decision making has the following challenges. The standard operating process does not work in every problem that the decision makers are faced with. This is due to the fact that each and every problem that the organisation manger faces is usually unique and mostly requires its own process, procedures and techniques to resolve it. In some cases the standard operating process in some cases does not turn out to be the time saver that they are supposed to be due to the fact that the standard operating processes are in most cases procedures that functioned once and there is definitely no single individual who is quite assured whether it was the appropriate method to solve the initial problem (Hodgkinson & Starbuck, 2007). In this model the problem facing the organisation is often dividend and allocated to dedicated units inside the organisation who in most cases develops their own goals and priorities. These primacies in most cases fail to agree with the overall organisation goals hence leading to conflicts in the management. The Political Model: This model do not look at one solo issue that affect the organisation but it focuses on majority of problems which occurs in the organisation and mainly reflect on the organisations individual goals (Brattton & Gold 1999). This model does not in any way assume that the choices that consequences of using the prevailing standard operating process, platforms, and procedures. The model state that the choices come from the bargaining amongst the stakeholders. The model also stresses the fact the decision making process involves regular variety of values, goals and the benefits within an intricate environment. The political model of decision making looks at the decision making like a procedure of resolving conflict and the building of an agreement and the choices that are made like an end product of concession (Mathis & Jackson, 2007). Whenever a certain problem within the organisation requires a change in the strategy, the political model suggests that a manager shall always put into consideration limited alternatives as well as all of them which are similar to the prevailing strategy. This outlook points out that the choices made by the managers always inclines to incremental that is the managers always makes minor changes in reaction to the direct stress instead of finding a well-defined set of strategies as well as broad platform. In the political model of decision making, the shareholders always have very different insight, priorities as well as the desired solutions. Because the shareholders always have a certain degree of power to sanction some of the proposals, there is definitely no strategy that can hurt a powerful shareholder that is likely to be accomplished even though the policy is objectively viable to the organisations goals and objectives (Shapira, 2002). The political model of decision making has the following challenges, In situation where the manger finds out that immediately a new information system has been put in place he or she will no longer be able to have access to certain crucial data, he or she is likely to oppose the implementation of this information system mainly because in the political arena information is power. A powerful shareholder is likely to oppose the implementation of certain policies which they find that will hurt them even if this policy is very crucial to the growth and development of the organisation. This therefore, stifles the growth and the development of the organisation (Mathis & Jackson, 2007). The model advocates for the consideration of all the alternatives which affects the organisation, whereas when dealing with certain problems within the organisation one needs to focus on a few problems which are relevant to the problem. In the year 2013 the city Council of Kingston embarked on major goals plans such as construction of infrastructure in the city for a safe and dynamic community, construction of a sustainable environment, construction of strong, healthy, and connected societies, construction of an innovative, and successful business city and building of leaders who are inspired by the community they live in. The city council also set various objectives such as understanding the various challenges and opportunities that the city of Kingston faced at that time and in the future whereas determining the superlative way of achieving the vision of making the city of Kingston a great city that makes it more hospitable for everyone and eventually acting on the suggestions from the community leaders and the stakeholders, so as to fulfil the desires and wants of the growing community. The city Council of Kingston targeted the publics who are the local business in Kingston, the residents of Kingston, the Kingston government and the external fiscal resources. The model of decision making that was utilised by the city Council of Kingston at that time was the rational model of decision making mainly because, the city council focused on the projects that were brought maximum value to the organisation as well as the community of the Kingston city. These projects were designed to ensure that the people of the city of Kingston got maximum value from those projects. References Brattton, J. & Gold, J (1999) Human Resource Management, Lawrence Erlbaum: London. Heller, F.A (1992) Decision Making and Leadership, CUP Archive: New York. Hodgkinson, G. P & Starbuck, W. H (2007) The Oxford Handbook of Organisation Decision Making, Oxford Handbooks Online: London. Mathis, R.L & Jackson, J. (2007) Human Resource Management, Cengage Learning: Stamford. Shapira, Z. (2002) Organisational Decision Making, Cambridge University press: London. Read More