Decision making models are the methods that help people like managers, CEOs, consultants and other members of the organization to solve any type of problem and find the best solution to the problem. These methods will tell you what you need the most to eliminate your problem and remove the confusions that arises in your mind while solving any problem. Show
Decision making models are of three types:-
1) Classical ModelClassical model is very old and well known model in any kind of decision making. Classical Model is also known as rational model Because in this method the decision maker takes the decision without any biases. It is a prescriptive model because in this the decision maker only suggests the best solution to the problem. In the classical model, the decision maker explores all possible ways of solving a problem and also notices the effect of each possible method and then logically select the best option to solve the problem without any biases. The classical model is based on the following four most important assumptions:
When a decision maker seeks to solve any problem through classical model, he should always keep in mind the above four points to get the full benefit of this method and find the best solution to the problem. You may also like:
2) Administrative modelAdministrative model is also known as bounded rationality model Because here in this model the decision maker has incomplete information about the problem. The only difference between administrative model and classical model is that administrative model does not contain complete information about the problem and the decision maker has to make his/her decisions under certain restrictions. In this, the person has only limited information and limited guidelines about the problem and on the basis of that he has to make a decision. In this method, the decision maker tries to make satisfactory decisions which can satisfy everyone in the organization. Such decision-making models are used to find solutions to the problem where the problem is related to more than 2 different departments in the organization. Basically it is used to find solutions to complex problems in organizations. This problem also has four most important assumptions:
3) Herbert Simon’s ModelHerbert Simon was also a great researcher and Nobel laureate. This model of decision making was given by him hence it is known as Herbert Simon’s model. According to this model a person goes through three stages while solving a problem.
Let’s understand all three stages one by one 1) Intelligence– Intelligence refers to the amount of internal and external information a person has about the problem. The more a person has the information related to the problem, the more he will be able to understand the problem better and will be able to take the right decision. 2) Design– Design refers to finding different types of solutions to eliminate the problem and evaluating all the solutions to find the best solution. 3) Choice– Choice refers to choosing the best solution among different types of solutions and then implementing and monitoring the solution to eliminate the problem. There are two decision making models. Detail description about this two given below: A classical decision model is a prescriptive approach that guides management on how it should make a decision. It rests on the assumption that managers are logical and rational and that they make decisions that
are in the best interest of the organization. The classical model views the decision-making process: i) Decision-makers have complete information about the decision situation and possible alternatives, ii) They can effectively eliminate uncertainty to achieve a decision condition of certainty, iii) They evaluate all aspects of the decision situation logically and rationally. However, these conditions rarely, if ever, actually exist. This model may be represented in the following diagram:  Administrative Model of Decision-makingHerbert A. Simon was of the first few scholars to recognize that decisions are not always made with rationality and logic. Simon, a winner of the Nobel Prize in Economics, instead of prescribing how decisions should be made, describes how decisions often actually are made. The Administrative model holds that managers: (i) Have incomplete and imperfect information, (ii) Are constrained by bounded rationality, and (iii) Tend to satisfies when making decisions. As a matter of fact, the classical and administrative models paint quite different pictures of decision making. The classical model is prescriptive: it explains how managers can at least attempt to be more rational and logical in their approach to decisions. The administrative model can be used by managers to develop a better understanding of their inherent biases and limitation. You May Like Also:
Which of the following is a difference between the classical model of decision making and the administrative model of decision making?Which of the following is a difference between the classical model of decision making and the administrative model of decision making? The classical model defines how managers should make decisions, whereas the administrative model defines how managers actually make decisions.
What is the administrative model of decision making?The administrative model of decision making assumes that decision makers' rationality is bounded and that they're willing to consider only a limited number of criteria and alternatives before making decisions. As a consequence, they settle for the first 'good enough' solution that they find.
What is the classical model of decision making based on?The classical model prescribes the best way to make decisions, based on four assumptions: a clearly defined problem, eliminated uncertainty, access to full information, and rational behavior of the decision-maker.
What are administration models?What is the Administrative Model ? The idea is to define the DIT as some areas which are administered. Each area can be defined, and covers a set of entries, and each area can manage one ore more roles we want to manage. Those roles can be related to authorization, schema, etc…
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Which of the following is a difference between the classical model and the administrative model of decision making?
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