The Rational Model of Decision-Making and Simons Normative Model - Essay Example

The limitations can be in the form of limited information, the complexity of the issue, uncertainty, time available, information available, etc. Because of these restrictions, decisions are taken based on what is immediately appropriate rather than the best possible action. Hence, all possible alternatives are not evaluated before taking any decision and managers tend to adopt a satisfactory solution to the problem. In the process, managers tend to use judgmental heuristics, which means the most commonly used ways are chosen as the solution to the problem.

The model of decision-making styles identifies two categories namely, value orientation and tolerance for ambiguity. From these, four decision-making styles emerge directive, analytical, conceptual, and behavioral. The five stages of the creative process include preparation, concentration, incubation, illumination, and verification.

• Explain how participative management affects performance, and also discuss knowledge management and techniques used by companies to increase knowledge sharing.
Participative management involves employees in key decision-making processes. In this management style, employees are involved in goal setting, making decisions, solving problems, and making changes in the organization. All these activities enhance employee motivation and commitment. Knowledge management is the process of enhancing the knowledge and information of employees through systematic processes and procedures. Organizational knowledge is categorized as tacit knowledge and explicit knowledge. Explicit knowledge can be increased by the usage of technology, documentation, and processes. Tacit knowledge, which is acquired from experience, can be improved by coaching, observing, providing feedback, and other knowledge-sharing practices such as training. Tacit knowledge can also be enhanced through informal meetings, mentoring, and the design of office space that allows maximum interaction.

• Contrast brainstorming, the nominal group technique, the Delphi technique, and computer-aided decision-making, and summarize the pros and cons of involving groups in the decision-making process.

Group problem-solving techniques include brainstorming, the nominal group technique, and the Delphi technique. Brainstorming involves generating numerous ideas and alternatives for a particular problem. The nominal group technique is meant for the generation of multiple ideas and also to evaluate and select the most appropriate solution. The Delphi technique involves the generation of ideas from physically dispersed persons anonymously. The computer-aided decision-making is faster in collecting information and eliminates roadblocks.

The advantage of involving groups in decision-making is that groups facilitate the gathering of greater or larger information, which will further improve the chances of choosing the most appropriate solution. However, the disadvantage is that group decision-making is time-consuming and can be chaotic. Secondly, greater group size can negatively impact the decision. Thirdly, a  leader’s control over the group and its process of decision-making is important for deciding on an optimum solution in the least time. Leaders should be able to identify each group member’s thought process and intention before deciding on any particular solution. Further, arriving at a common consensus remains a challenge in the group decision-making process. Read More