Running head: DECISION MAKING APPROACHES AND MODELS 1

Decision Making Approaches and Model

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Decision Making Approaches and Models.

The decision-making capabilities of leaders determine the success of the organization.

Different situations require different approaches to find a solution. Therefore, it is the

responsibility of decision-makers to learn the skills which they can in turn use to solve problems.

The most widely used decision-making models are the rational, the bounded rationality, political

model and personal approach.

The rational model

In the rational model, decision making involves a logical and systematic process

in selecting the best alternatives among the options. The decision made is based on careful

analysis of the subjects with a focus on achieving the most suitable decision. Scott and Bruce

(1995) argue that the model is characterised by logical and exhaustive research on all the

available options. When managers decide to use this model, it is assumed that;

 They are aware of the possible alternatives.

 They know the possible outcomes as a result of the selection they make on the

alternatives.

 Are prepared to handle any consequences that arise due to the decision they make.

 It is assumed that the managers have computational abilities to compare between

the set of alternatives that they have which helps in determining and settling on

the most favorable alternative.

Rational decision-making processes involve steps which assist in getting the most

effective solution. The model uses the following steps.

1. Identifying the problem that needs to be solved.

In any difficult situation, it is essential to clearly define the problem that needs

specific decision-making processes to find a solution. If the problem is not clarified,

the decision makers may engage themselves too much or too little in solving the

issues. When the managers accurately define the problem, they increase the chances

of settling into the best option that would work to solve the actual problem.

2. Identifying the solution criteria

This involves envisaging how the solution scenario would look like when the

process ends. It answers the questions of what characteristics will signal that a

solution has been reached or what observations are expected to determine that the

problem has been solved successfully.

3. Performing gap analysis

Gap analysis refers to establishing the differences between the solution and the

problem. It involves deciding on the effort that the organization will make form

defining the problem of finding the solution. The managers identify the steps which

are needed from the position where the organization stands at that particular moment

and ways that will through which a solution will be found.

4. Gathering information and alternatives.

It involves gathering opinions about the steps identified in the gap analysis phase

and evaluating each step. Also, the alternatives are researched to find how the would

affect individual undertaking them either positively or negatively.

5. Analyzing the outcomes of every option

This involves studying and investigating the possible outcomes. The goal is to

determine how the outcomes will influence the involved stakeholders. In some
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situations, an outcome my affect one party negatively while the other is affected

positively. Under these circumstances, it is hard to solve the situation. In this phase,

the aim is to predict the possible outcome and selecting the most suitable.

6. Implementing the decision and weighing on the outcome.

This phase involves implementing the decision keeping in mind what is to be

achieved. This involves going back to the identification of a solution scenario. If the

success has not been achieved, the gap analysis step is repeated, and different steps

are taken in finding the solution.

The bounded rationality

Under the model of bounded rationality, decisions are made based on satisficing behavior

and the feedback from the surroundings. It is assumed that managers do not always have all the

information they require to make a decision. The decision making depends on the past the

experiences of the past decisions carried and adjust accordingly in response to the intended goals

and objectives to be achieved. According to Simon (1979), the behavior of the human is shaped

by the environment and the computational capabilities of the involved individual. The model is

categorized by the actions of searching and satisficing. It involves finding the alternatives and

evaluating each one of them based on the set standard minimum criteria through which they

bound to satisfy. The option which satisfy the conditions first is considered, and the search is

terminated. The model is based on the following concepts;

1. Consecutive attention to optional solutions. Involves searching for a solution one at a

time instead of taking all the possible solutions and stopping when a solution is found.
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2. Heuristic. This is assumptions which give direction and guidance on where to focus the

searching for alternatives solution in areas where they exhibit the highest chances of

probability.

3. Satisficing. Refers to the action of selecting an alternative solution which seems to

satisfy the conditions under the circumstances. It involves settling for the first option

which meets the least requirements for the solution rather than finding the best

alternatives.

Political model

This model contradicts rational models of selecting the best alternative. The decision

makers focus on a many problem in an organization rather than concentrating on a single issue

which reflects on personal goals of the individuals involved. In this model, there are no

guidelines, rules or procedures which guides on the decision-making process. The solutions are

found by discussing among the groups and reaching a consensus. The power is decentralized,

and members believe that solving problems requires agreement among members and decisions

are as a result of compromising one’s values.

When an organization runs into problems and requires a change of policies, it is assumed

that managers will consider policy options that are similar to those that exist. The political model

suggests to the managers to only change some parts of the policy instead of making a set of new

alternatives and evaluating each one of them. This approach is called incremental. It saves time

in searching for information and identifying stages of problems. According to Lindblom (2018),

disjointed incrementalism involves making feasible changes on existing issues rather than

working to achieve a certain goal. Every participant is regarded as an important aspect of making

the decision, and their opinions and interests are deemed important.
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The personal approach

The model focuses the attention on the behavior of the individual when making decisions

based on their background and personality. It shows how managers differ in their decision

making based on their different personalities. Janis and Mann (1977) stated that personal

conflicts affect how people make decisions during difficult situations. They claim that when a

person encounters a problem, they examine the situation and seek feedback by asking themselves

if risks involved are dire if they do not take action. The model is characterized by the following;

1. In most cases, the model deals with life decisions which affect an individual or

institutions.

2. It affirms that procrastination is a way through which individuals avoid making

decisions.

3. The decision taken is based on one’s moral standards. The decision maker may forego

the alternative even when it is beneficial if it goes personal belief.

4. It recognizes that sometimes a person may be uncertain about making an alternative

decision. This makes it difficult to commit to one action fully.

Decision-making approaches and models can be used in solving problems and finding

solutions. Using rational model can assist managers to reach the most favorable alternative that

can help in reaching the solution. Additionally, the bounded rationality can help in saving time,

thus help to make a decision fast. Also, the political model gives every partner a chance to give

their views which can be used to solve issues. Finally, the personal approach allows an

individual to make decisions based on their personality.

References

Scott, S. G., & Bruce, R. A. (1995). Decision-making style: The development and assessment of

a new measure. Educational and psychological measurement, 55(5), 818-831.

Simon, H. A. (1979). Rational decision making in business organizations. The American

economic review, 69(4), 493-513.

Lindblom, C. (2018). The science of “muddling through.” Public administration review (pp. 79-88).

Routledge.

Janis, I. L., & Mann, L. (1977). Decision making: A psychological analysis of conflict, choice, and

commitment. free press.