administrative model of decision making in management
Only in execeptional cases it is concerned with the discovery and selection of optional alternatives.” He further observes: “The central concern of administrative theory is with the boundary between the rational and non-rational aspects of human social behaviour. The rational decision-making model describes a series of steps that decision makers should consider if their goal is to maximize the quality of their outcomes. It is so called because the policy-maker makes one type of comparisons among different methods or processes for the purpose of getting maximum benefits or favourable results for his organisation. The central idea of this model is the foundation of every model should be and ought to be the maximum amount of rationality and this could be achieved through continuous search and research of alternatives. The recurring concern for the general improvement of education often seems to focus on the betterment of school administration, a key part of the public education system. Simon next says that every decision is a composite decision-which means that behind every decision there are clear contributions of a number of persons and tor that reason it is called a composite decision. This is called “satisficing”. According to Lindblom, the decision-making is primarily a value-related or value-laden matter and his objective is to harvest maximum benefits for his organisation. It must be realistic. It is quite logical and realistic. Dror says that Lindblom’s approach is closer to reality. Explaining Lindblom’s incrementalism, it has been said that in any branch of public administration a policy is never made permanently, it is once made and remade again and again and the process continues until the policy-maker is fully satisfied. The globalisation has to a large extent obliterated the geographical barriers and because of this the interdependence among the organisations has considerably increased. Rather he will try to arrive at a satisfactory stage. The model is based on the following assumptions: (i) Administrative man adopts satisfaction approach in decision-making rather than the maximizing approach of economic man. (5) One psychologist has said that a mind can distinguish maximum seven categories of phenomena at a time. One such model or approach is incrementalism whose author is C.E. Gregg … If we analyse Simon’s concept the following features appear before us: The chief executive or organiser will always try to maximise the benefit. The _____ model of decision making describes how managers actually makes decisions in situations characterized by nonprogrammed decisions, uncertainty, and ambiguity. In other words, the policy-maker does not try to embark on an ambitious project. He says: “The key to the simplification of the choice process is the replacement of the goal of maximising with the goal of satisficing of finding a course of action that is good enough.” Simon says that the satisficing model is the rational practical and on this ground, an acceptable course that is generally adopted. In this section we intend to throw light on the reverse side of the issue. We shall now focus our attention to the concept satisficing rationality. They must have the information & the ability to analyze & evaluate the alternatives in light of the goal sought. What is appropriate today may be irrelevant next time and in that case the authority will have to take a new decision and arrangements be made for the implementation of the decision. The rational model of managerial decision-making has its roots in the economic theory of the firm. In any administrative system or organisation information and advice flow in all directions. Steps of the Decision Making Process. In an open system (an organisation always acts in such a system) an administrative department cannot keep itself aloof from others. Personal liking and disliking have very little to do with the working of international market. In his opinion decisions are both factual and ethical. Simon has said that it is the duty of the administrator to judge or test the value of every information. A bold and comprehensive policy requires a good amount of intelligence, experience, farsightedness, and many other qualities. Using a step-by-step approach is an efficient way to make thoughtful, informed decisions that have a positive … But the methods of techniques of solution must follow definite principles. Barnard has elaborated this aspect in a number of ways. He, again, makes attempt to compare different results derived from different policies. There are three main models for business decision making, which are the Administrative Man model, Classical model and Retrospective model. The ability to make effective decisions that are rational, informed, and collaborative can greatly reduce opportunity costs while building a strong organizational focus. 1. (ii) He perceives the word as a simplified model … In short, it is called incrementalism. The rational decision-making model describes a series of steps that decision makers should consider if their goal is to maximize the quality of their outcomes. Dror further observes that in modern society both knowledge and techniques change and when this happens Lindblom’s model will be unworkable. WordPress Social Login is not configured yet.Please navigate to Settings > WP Social Login to configure this plugin.For more information, refer to the online user guide.. We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. Let us put it in the words of Simon: “Most human decision-making, whether individual or organisational, is concerned with the discovery and selection of satisfactory alternatives. In this definition Simon has briefly stated the nature of decision. A number of meetings are held and thread-bare discussions take place. It results … Naturally, every organisation or public administration must (while making policy) see that the decision must be able to achieve the goal. Because of the limitations the concept of rationality cannot be rejected and, keeping this in mind, Simon has suggested a middle course. Simon’s definition runs as: “Decisions are something more than factual propositions…. Results Out for BACHELOR OF MANAGEMENT STUDIES (SEM... 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Lindblom claims that his ‘incrementalism’ or limited comparison approach is superior to many other approaches or methods because it is practical and is based on scientific reasoning. INTRODUCTION Decision making is an intellectual process of selecting optimal and best option among many alternative choices. The adoption of policy depends upon his satisfaction. In this situation the executives or bureaucrats quite naturally differ among themselves on the assessment of the global situation. It asserts that " decision-making is the heart of administration, and that the vocabulary of administrative theory must be derived from the logic and psychology of human choice", and it attempts to describe … By administration we mean the execution of governments or authority’s policies or decisions whereas administrative process implies the methods or procedures that are applied for running the administration. 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