·       MODELS OF DECISION MAKING

What are models of decision making? In the real world of business, managers are the members of a team of decision makers, working in the specific firm with a specific culture and set of political alliances and conflicts. There are number of models attempt to describe how people in firms make decisions by focusing in the category which is individual decision making and groups decision making.[1]

            The individual decision making is consider to the rational individual model which assume that human beings are in some sense rational. The rational model of human behavior is built on the idea that people engage in basically consistent, rational, value-maximizing calculations.[2] Which mean that an individual identifies goals, ranks all possible alternative actions by their contributions to those goals ,and chooses the alternative that contributes most to those goals because people can not specify all of the alternatives and don’t have singular goals and unable to rank all alternatives and consequences.

            The groups decision making consider as organizational models of decision making which take into account the structural and political characteristics of an organization. The bureaucratic models of decision making have been proposed to describe how decision making takes place in organization. According to the most important goal of an organization’s is the preservation of the organization and reduction of uncertainty. The bureaucratic models depict organizations generally not choosing or deciding in a rational sense but are the result of routines and existing business processes honed over years of active use.[3] This is because they may have to change personnel and incur risks. So the senior management and leaders are hired to coordinate and lead the organization. They are effectively trapped by the organization’s standard business process and existing solutions.

            The another example of groups decision making is political models of decision making which is what an organization does is a result of political bargains struck among key leaders and interest groups. It means that the organizations do not come up with solutions that are chosen to solve some problem. Instead they reach compromises that reflect the conflicts, the major stakeholders, the diverse interests, the unequal power, and the confusion that constitute organizational politics.[4]

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