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Administrative Model of Decision Making

The administrative model of decision making describes how decisions are made in complex environments where not all alternatives and outcomes are known. Proposed by Herbert Simon, it assumes decision makers have limited knowledge and search capabilities and aim to satisfy an acceptable level. This more realistic model takes into account human factors like background and awareness that influence decisions.

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2K views5 pages

Administrative Model of Decision Making

The administrative model of decision making describes how decisions are made in complex environments where not all alternatives and outcomes are known. Proposed by Herbert Simon, it assumes decision makers have limited knowledge and search capabilities and aim to satisfy an acceptable level. This more realistic model takes into account human factors like background and awareness that influence decisions.

Uploaded by

xylestorm
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Administrative model of Decision Making

It is a descriptive model, explaining how decision making process

takes place.
This model was first proposed by Herbert Simon.

It tackles the decision making process as taking place in an

environment which is complex and in which certain elements are


known.
This model makes the following assumptions:
 The decision maker does not know all alternative s and all outcomes.

 The decision maker can make only a limited search to discover a few

satisfactory alternatives.
 The decision made with the intention of satisfying the aspiration level

of the decision maker.


This is more realistic model.

It takes into consideration the human factor in decision

making.
It subject to the background, training, natural abilities and

awareness level of the decision maker.


Here are some decision making models which focuses on

Human Expectations approach.


Another aspect is time process in decision making.

So in this decision maker will take long time to make a

decision because he cant change it again.


On other hand if decision is reversible, then decision maker

will take quick decision and will check the result.


Having made a minor decision about something, the decision

maker is more open to bigger commitment.


Organisational Decision Making
Basically, the study points out various motivations and

strategies that people in organisations have in making


decisions.
Some important aspects are:
 An organisation is made up of people with different goals and

levels of influence.
 When person is working in different department they are having

such goals which may conflict with each other.


 It can be resolved by:
 Local Rationality

Acceptable-level decision rules ∙ Sequential Attention to Goals
Local Rationality:

Each department is allowed to set their own goals.


Acceptable-level Decision Rules:

Decisions-riles and procedures are agreed upon in


advance and sub units are allowed to make their own
decisions based on it.
Sequential Attention to Goals:

the organisation is attend to goals in sequential order,


giving each goal a chance to influence the organisation.

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