models of decision making

MODELS OF ORGANIZATIONAL DECISION MAKING When we speak of rational behavior, we should remember that our focus in this discussion is not on making decisions, but rather on how to support the process of making decisions. Managers are change agents, not just decision makers, so the steps before and after a decision are as important as the actual choice of action. Preparatory steps include creating tension for change, understanding the positions of the various constituencies, and developing political support for a chosen action. Steps after the decision include naming the change monitor and identifying the monitoring methods. Therefore, the mission of good information system is broader than just collecting data to make a choice. Designers of information systems must understand not only how managers think but also how the decision process will be implemented in the managers’ environment. An information system that is well design is an information system that is used. Thus, an information system, in order to be useful, must be implemented. To understand the implementation process better, we review three models of organizational decision making rational, administrative, and political. The Rational Model. The rational model of decision making was introduced earlier in this chapter. It is based on the logic of optimal choice: the choice that would maximize value for the organization. The manager is assumed to be an objective, totally informed person who would select the most efficient alternative, maximizing whatever amount and type of output s/he values. We can summarize the rational choice process as follows:
1. An individual is confronted with a number of known alternative courses of action.
2. Each alternative bears a set of possible consequences. These consequences are known and are quantifiable.
3. The individual has a system of preferences or utilities that permits him or her to rank the consequences and choose an alternative.
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