Dject> management topic> eiassicai ana benaviorai uecision I neory
Ter details view the classical and behavioral models of decision making information presented below then write an essay of approximately 400 words providing examples of when i have used optimizing decision making and examples of when they have used satisficing decision making for your real-life situations.
ure 9.3 from the textbook provides a comparison of the classical and behavioral models of decision making. Classical decision theory views the manager as acting in a rid of complete certainty. Behavioral decision theory accepts the notion of bounded rationality and suggests that people act only in terms of what they perceive about a an situation.
issical and Behavioral Decision Theory: Classical decision theory assumes that the manager faces a clearly defined problem, knows all possible action alternatives their consequences, and then chooses the alternative that offers the best, or aopfimum,° solution to the problem.
st of us have access to decision-making support from expert systems that reason like human experts and follow °either—or rules to make deductions. Fuzzy logic that sons beyond either—or choices and neural networks that reason inductively by simulating the brain’s parallel processing capabilities are becoming operational realities twill move beyond simple programmed decisions.
inded rationality is a shorthand term suggesting that, while individuals are reasoned and logical, humans have their limits. Individuals interpret and make sense of igs within the context of their personal situations. They engage in decision making ‘within the box’ of a simplified view of a more complex reality. This ultimately leads to isficying wherein decision makers choose the first alternative that appears to give an acceptable or a satisfactory solution to the problem.
s makes it difficult to realize the ideal of classical decision making. As a result, the classical model does not give a full and accurate description of how most decisions made in organizations.
Garbage Can Model: The garbage can model views the main components of the choice process – problems, solutions, participants, and choice situations – as all ced up together in the ‘garbage can° of the organization. When the organizational setting is stable and the technology is well known and fixed, traditions, strategy, and the ninistrafive structure help order the contents of the ‘garbage can .° When the organizational setting is dynamic, the technology is changing, demands are conflicting, or goals are unclear, the components of the ‘garbage can° get mixed up.
garbage can model highlights two important organizational facts of life: