Describe the decision making model - Essay Example

The Decision Making Model It has been the practice of the people involved in the management of businesses to engage in decision making. There is usually limited time and resources in formulating business policies and addressing of public issues. Therefore public and business administrators must practice a certain degree of discretion in planning, revising and implementation of public policies (Gianakis 2004). They must participate in making decisions. Decision making is the process of evaluating the various options available, benefits and costs related to them, and selecting one for implementation.

There are various decision making models; the pure rationality model, disjointed incrementalism model, rounded rationality model, intuitive model, recognition primed model, ultimate model and the cost/benefit analysis model. The pure rationality model is the most rational model in decision making but unrealistic as it is based on unlimited time, resources and knowledge assumption in its implementation.Cost benefit analysis model is a technique to analyze an opportunity to demonstrate the cost saving benefits towards receiving management support and commitment to implement (Tsl.state.tx.us 2010). It is usually carried out to determine how well or poorly an action will turn out.

The model is mostly used in making of financial decisions. It encompasses the addition of positive factors and negative results subtraction in determination of the net outcome. It is commonly referred to as running the numbers.A cost benefit analysis finds, adds and quantifies all the positive factors or the benefits in relation to a decision option. It then identifies, subtracts and quantifies all the negative factors normally referred to as costs. The difference of the benefits and the costs of the related decision option is an indication of the viability of the decision option.

To ensure the best option is taken, it is always advisable to include al the costs and benefits and proper quantification procedures are carried out. For example when dealing with healthcare decisions, we may require driver services. Drivers are very vital in the running of a health care services center. They are the ones who are major players in ambulance services therefore their well being should be treated with care. The sobriety of the drivers should be ensured as they are usually permitted by law to drive at very high speeds.

A health care manager may be faced with the decision of whether to employ a new driver or pay overtime wages to the current drivers. In doing this the manager should consider al the benefits and costs of both the options. He should then find for the difference between the costs and benefits. Then to make the decision, the manager should take the option with the greatest positive difference that is the option whose benefits outweigh the costs by a greater margin. In estimating the benefits and costs, the manager should consider the financial benefits to the health facility as well as the individual drivers.

He should evaluate whether paid overtime services will outweigh the psychological capabilities of the employees. He/she should also consider if by employing a new driver will works towards the demoralization of the already hired drivers. It is advisable in this situation to evaluate the effects of overworking the drivers and especially in relation to the road safety rules. The manager should only take a decision only when he is fully satisfied that, in the current circumstances and available resources he has taken the best option and has used the right decision making processes in reaching at the decision.

ReferencesGianakis, G.A. (2004), Decision Making and Managerial Capacity in the Public Sector, In: Holzer, M., Lee, Public Productivity Handbook, New York, Marvel Dekker Inc, P.43Tsl.state.tx.us (2010), Cost Benefit Analysis retrieved on 27th July 2010 from http://www.tsl.state.tx.us/slrm/recordspubs/costbenefitanalysis2.pdf