Decision Making ModelsDecision Making Models

Rational– Consider all information– Objective assessment

Bounded rationality model– Inadequate information– Limited search, satisficing

Political– Pursue self-interests

Steps in the Decision-Making Steps in the Decision-Making Process: The Classical ViewProcess: The Classical ViewOpportunity or Problem Situation

Opportunity or Problem Recognition

Opportunity or Problem Definition

Generate Alternatives

Gather Information

Evaluate, then Select One Alternative

Implement Selected Alternative

Evaluate Effectiveness

Steps in the Decision-Making Steps in the Decision-Making Process: The Administrative ViewProcess: The Administrative View

Opportunity or Problem Situation

Opportunity or Problem Recognition

Criteria for Satisficing Alternative

Evaluate Alternatives as Available

Select First Acceptable Alternative

Implement Selected Alternative

Evaluate Effectiveness

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Obstacles to Effective Obstacles to Effective Decision-MakingDecision-Making

Four most common obstacles:– Judgmental biases– Escalation of commitment– Groupthink– Willingness of groups to take risks