Task 2 Essay Example | Topics and Well Written Essays - 2000 words

Task 2 - Essay Example Decision making is often seen as the central job of the managers who decides what is to be done, who has to do it, where, when and how it is to be done. Decision making is regarded to the first step in the planning even when it is done quickly by taking a little time to decide and also influences an action just for a minute (Koontz and Weihrich, 2006). There are various theories related to philosophical, mathematical and economic sources. This study highlights on the various theories of decision making. The Classical Model The classical decision theory is straightforward. It assumes that there is only one best solution to the problem; the decision maker needs to identify it, select it and then finally implement it. According the following sequential steps has been designed. Step 1: Identification of the problem The actual and the desired outcome should be determined and then any type of disparity existing between the two should be identified. Step 2: Diagnose the problem The informat ion should be collected and should be analysed properly in order to gain a clear explanation of the nature of the problem. Step 3: Define the alternatives After understanding the nature of the problem the potential options to the solution of the problems must be developed. Step 4: Examine the consequences The probable consequences of all the potential alternatives should be examined rigorously. Step 5: Make the decision The best amongst the potential alternatives must be chosen. While choosing the best alternative one should see that the objective and the goals are maximised. Step 6: Do it The decision must be implemented. The classical model leads to the optimization of strategy. This approach stands on the classical economic theory that is based on the assumptions of apparent goal, full information and cognitive ability to deeply analyse the problem. However practical problems exists that follows this perspective. Decision makers are human beings who have emotions, feelings and a variety of interests. Compromise and diversity are the stuffs that are their everyday requirement. One objective may be favoured over the other but no one allows one single goal that is an unrealistic one dimensionality to dominate in the working life (Hoy and Miskel, 1991). The notion that the organizational goals are simple and clear is oversimplification. Goals of the organization are often conflicting and complex. The problem of improbability is essential for the organization. Dealing with the problem of improbability has now become a common agenda in the organization share (Mintzberg, 1983). However there is no such common criterion for dealing with the improbability in the decision making (Thompson, 1967). It is virtually not possible to select the best alternative when the consequences are not known. Improbability makes optimizing an impractical choice. The unnecessary demand for human cognition that cannot be met is another problem with the optimizing strategy. Neither any o rganization nor any person is capable and smart such that they can conduct maximum utilization of anything. Even the modern computers are incapable to achieve this feat. For instance the computers are incapable of handling the huge quantity of information that is required to choose the simplified move in the game of chess (Feldman and Kanter, 1965; Hoy and Miskel, 19