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The nature of decision making
crucial for success: essential for organisational effectiveness
linked with planning: key to good plans
support operations: helps in organising, leading and controlling.
Decision-making Models
[CumaAwakIngatMereka]
classical model: finding best solution
administrative model: choosing good enough solution
incremental model: step-by-step decisions
mixed scanning model: big picture thinking + detailed planning
Classical Decision Model
get information
remove uncertainty
think rationally and logically
Make the best decision
identify problem
create goals
generate alternatives
consider consequences
evaluate alternatives
select the best
implement
The administrative model: Satisficing
recognise problem
analyse difficulties
set criteria
develop a plan
initiate and monitor
managers often:
incomplete information
limited rationality
satisficing
result
The incremental Model: Muddling
small options
compare consequences
adjust based on results
The mixed-scanning model: an adaptive strategy
questions: mission? decisions help achieve it?
combination: administrative + incremental
process: assess progress and adjust