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A discussion about several decision making models

Rationality[ edit ] Since the development of public administrationscholars have assumed that people make decisions rationally. Max Weberin the early part of the 20th century, suggested distinguishing two types of economic rationality: The "formal rationality of economic action" referred to "the extent of quantitative calculation or accounting which is technically possible and.

He defined substantive rationality, stemming from the concept of rationality within economicsas behavior that "is appropriate to the achievement of given goals within the limits imposed by given conditions and constraints".

Procedural rationality, based in psychologyrefers to behavior that "is the outcome of appropriate deliberation". Facts are important in deciding the appropriate means to take to achieve higher ends. They may not be readily known by administrators but need to be acquired through extensive research and analysis. Rationality is defined in terms of appropriateness for the accomplishment of specific goals. Van Wart, 2004 Besides setting goals for their plans, decision-makers make priorities, interpret facts and act upon objective situations according to their values.

Besides balancing conflicting values within an individual, government has to weigh and balance values embodied in different departments Van Wart, 1996, 1998.

Means[ edit ] Means are the instruments to satisfy a higher end Simon, 1997.

  1. After recognizing the problem, he had immersed himself in the literature to understand all the options, and he worked on the problem for months trying to figure out a solution. Key Takeaway Decision making is choosing among alternative courses of action, including inaction.
  2. Of course, the outcome of this decision will be related to the next decision made; that is where the evaluation in step 8 comes in. For example, remember the restaurant that routinely offers a free dessert when a customer complaint is received.
  3. Retrieved March 1, 2008, from http. We do not exactly know how many ideas he had over the course of his career, but his ideas are fairly different from one another.

Although they are used to achieve a higher end, they are not neutral in value. When policy makers devise their strategies, they choose their means according to their internal values and consequences. Ends[ edit ] Ends are the intermediate goals to a more final objective.

In a means-end hierarchythe concept of means and ends is relative. However, in this hierarchy, an action is more value-based when moving upwards in the hierarchy but more fact-based when moving downwards. There are several models of decision-making: In this, following conditions are assumed. The decision will be completely rational in means ends sense. There is a complete and consistent system of preferences that allows a choice among alternatives. There is a complete awareness of all the possible alternatives Probability calculations are neither frightening nor mysterious There are no limits to the complexity of computations that can be performed to determine the best alternatives Social model[ edit ] At the opposite extreme from the economic rationality model is the social model drawn from psychology.

Sigmund Freud viewed humans as bundles of feelings, emotions and instincts, with their behavior guided by their unconscious desires.

Decision-making models

These processes have even an impact in the international arena as they provide some basic rules of protocol. He felt that management decision-making behaviour could be described as follows: Examples of satisfying criteria would be adequate profit or share or the market and fair price.

They recognize that the world they perceive is drastically simplified model of the real world. They are content with the simplification because they believe the real world is mostly empty anyway. Because they satisfy rather than maximise, they can make their choices without first determining all possible behaviour alternatives and without ascertaining that these are all the alternatives.

Group decision-making

The managers treat the world as empty, they are able to make decision with simple rule of thumb. These techniques do not make impossible demands upon their capacity for thought.

Models of Decision Making: Rational, Administrative and Retrospective Decision Making Models

Neuroscientific neurocognitive model[ edit ] In cognitive neuroscience decision-making refers to the cognitive process of evaluating a number of possibilities, and selecting the most appropriate thereof in order to further a specific goal, or task. This faculty is a fundamental component of executive functions, although recent studies show that a complex brain network is involved including motor areas.

  • The manager of the restaurant implemented the free dessert policy as a way to handle customer complaints, which is a tactical decision;
  • Because groups offer both advantages and disadvantages in making decisions, Victor Vroom developed a normative model of decision-making [8] that suggests different decision-making methods should be selected depending on the situation;
  • This faculty is a fundamental component of executive functions, although recent studies show that a complex brain network is involved including motor areas;
  • Understand different types of decisions;
  • Please note that, while creativity is the first step in the innovation process, creativity and innovation are not the same thing;
  • Is activation the key?