Bales further claims that very often the decisions are not made in any particular organisation’s meeting. The policy-maker must consider the fruitful application of new techniques and other methods. But the persons associated with the making of decision know, at least partially, what is rational. But Simon, in a number of places, emphasises that the contribution of rationality has been exaggerated. Y. Dror has suggested an alternative model or approach for policy-making and it is called Rational and Extra-rational model. Pfiffner claims that his administrative rationality is basically different from Lindblom’s model. That is, few eminent experts in public administration are of the view that rationality does not always play the most vital role. The business decision making process is commonly divided into seven steps. Particularly in this age of globalisation and liberalisation the international events influence the policy­making affairs of an organisation or public administration. He suggests changes in an incremental way and for that reason it is called incrementalism. He confines himself within limited choices, compares the results of those choices and, finally, decides one. It is generally called incremental change through successive limited comparisons. (5) One psychologist has said that a mind can distinguish maximum seven categories of phenomena at a time. 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. Consider the "what might go wrong" factor with each alternative. Generally, a policy-maker endeavours to arrive at a final decision after comparing the consequences and the results of policy. 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. According to Simon-decision or decision-making “is a matter of compromise”. Herbert Simon, perhaps more than any other social scientist, enlightened the world about this darker side of decision-making”. An organisation cannot ignore the international events and phenomena. Lindblom’s model fails to solve these issues. the Ford Corporation) was planning to introduce a new model every year, in the USA. Managerial Decision Making CHAPTER 9 0 . There are various aspects of public administration and organisation. The advocates of bounded rationality emphatically assert that there is doubt how many people possess these qualities. they are descriptive of a future state of affairs and this description can be true or false in a strictly empirical sense, but they possess an imperative quality, they select one future of state of affairs in preference to another and direct behaviour towards the chosen alternative. There are several approaches to or models of decision-making process of public administration. Key Takeaways Key Points. The following two tabs change content below. Naturally, the decision or approach of a single man cannot be final. It has been said by Herbert Simon that no decision in an organisation is made by any single person. This he tries to apply to making of decisions. One of the key administrative … TYPES OF 14. TOS 7. The incrementalism or bargaining approach is generally used in the case of internal public administration, but in foreign policies its use is not rare. So we can say that a decision deals with both the present and future of organisation. Generally an executive is called the chief architect of an organisation. But Dror says that, in public administration or in the activities of an organisation, the same problem does persist for long time and if the problem changes and situation also changes the Lindblom model may not work with full satisfaction or may not work at all. The argument or reason of one is followed by a counter-argument and in this way discussion proceeds. (4) Human mind and rationality cannot comprehend all possible situations. Barnard’s main plank of thought and argument is cooperation and application of thought and reason and continuous research are the main aspects of policy-making function. A core managerial competency is a manager's ability to make sound decisions that solve problems. Define the problem: The first and the foremost step in the decision-making process are to define the … Sometimes the term rationality cannot be defined or explained properly. He investigates the advantages and drawbacks of every approach and finally decides one. (7) Many men are guided by self-love, heuristic feeling, and also nepotism. 65 51 views. The principal reason for this non-rationality is that the decisions are made by people, and people are less than logical. The policy-maker tries to get idea from the past and this is very important. In any administrative system or organisation information and advice flow in all directions. Nicholas Henry also points out that there are also bounds of organisational rationality. Because of the limitations the concept of rationality cannot be rejected and, keeping this in mind, Simon has suggested a middle course. When all the aspects of a decision are properly considered or scanned it will be found that behind every decision there is contribution of many individuals or bodies —of course, everyone’s contribution may not be very important, but the importance of a contribution cannot be ignored. Pfiffner has said that personal values have an important part to play in the decision-making process. Content Filtrations 6. (i) Economic Man Model-The economic man model is used in the classical approach of decision-making. 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. The decisions will be taken such a way as to maximise the benefits or satisfy the actor’s goal. 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