Models of Decision-Making Research Paper Example | Topics and Well Written Essays - 250 words

Models of Decision-Making - Research Paper theoretical accountThe Classical model of close making jackpot be utilized in the composition to get to various business decisions (Li 1). This is a prescriptive method of decision making and assumes that managers are demythologised and tenacious in their decision making process and their decision will be governed by the best interests of the organization. My organization recently purchased new manufacturing equipments. The main problem was increasing costs of servicing the old machine, low fruit and raw materials wastage during the manufacturing process. The management made the decision by keep uping the classical model since the purchase decision was rational. The management followed a clear sequential process of analyzing the costs involved in servicing the earlier equipment and associated benefits (Li 2). The management also conducted a cost-benefit analysis of the new equipments by factoring all associated costs and pass judg ment output to the organization. The management also considered other alternatives including upgrading the previous equipment or leasing the equipment from a third party. After the rational and sequential analysis of the decision criteria, the management found it prudent and reasonable to purchase the new equipment alternatively of upgrading or leasing one from third parties. The management later bought the new machine and made a follow up to ensure it met the objectives of the decision (Li 3).The administrative model is also refereed as the behavioral model or neoclassical model. There are numerous factors which determine how a problem or decision can be classified in to the classical model, administrative and political model. For the classical model, the decisions or problems will be classified in this model if the decision aims at accomplishing a particular well-known goal (Ayobami 1). The licit criteria for making the decision should be economic interest and the decision maker should be rational. There must be conditions of certainty including