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Describe the decision making model - Essay Example

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There is usually limited time and resources in formulating business policies and addressing of public issues. Therefore public and business administrators must practice…
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Describe the decision making model

Download file to see previous pages... 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 ...Download file to see next pagesRead More
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