Decision Making Typologies

A leader can use different models in decision making process i.e. The descriptive model, Normative model, and prescriptive model. The decision maker should consider the following to make an effective decision:

v The quality or rationality of the decision.

v The acceptance or commitment on the part of subordinates to execute the decision effectively.

v The amount of time required to make the decision.

 I will concentrate on Simon's normative Model of decision making.

Simon's normative model has four phases: - intelligence, Design, Choice and implementation. The decision maker becomes aware of the problem, posits a goal, carefully weighs the alternatives, chooses among them according to his estimates of respective merits and finally evaluates if the choices made solves the problem. The decision maker has a limit of how much information he can manage, and chooses the alternatives that he/she believes does the most good. The leader may use past experiences to make personal decisions, financial planning, investment decisions and so on. It helps the leaders to be aware of their strengths, weaknesses and inclinations, thus help them to become better decision makers.

I will use two examples to demonstrate this:-

1). Consumer buying decisions

Let’s watch the following to see how the customers make buying decisions using normative model.

The consumer recognizes a need and searches for information (Intelligence), evaluates the alternatives (Design), then decides what to buy (choice) and later evaluates whether what he/she bought satisfies the need (Implementation).

2). Personal decision

Personal decision to Australia for further studies

Intelligence: - I had to identify the problem/solution that triggered the decision and collect information. I wanted to grow my career, to improve my knowledge, to expand my network, get new experiences so that I can get a better job with better income, have job satisfaction in future and do something for myself. I have always wanted to be involved in the management of a well-established organization. There were several factors that were affecting my decision:

Location: - Where do I want to undertake my studies? Location depended on several factors too i.e. the weather, economy, security, opportunity to settle after studies, complexity of Visa application process, any personal contacts in that city, reputation of the education system, cost of living, Opportunity to work and so on.

Finances: - Will I afford it? What is cheaper, studying abroad or in Kenya in terms of tuition fees, cost of living, and travel expenses to and from home (Kenya)?

The course: - I had to choose to undertake for further studies. I had to review my background knowledge, career direction and if the course is offered. I had to choose a course that will also help me to get my permanent residency; i.e. is the course on Skilled Occupation list? I also had to look at the job opportunities available once I complete my studies.

 Income: - After I complete my studies, how much will I earn when in Kenya vs. when Abroad? Also while at school how much will I earn to support my daily expenses?

Duration: - How long will the course take?

My job: - Quitting my job and travel abroad to start all over again.

Design:- I had to describe the alternatives in terms of location and the course, which must include just what I value. Among the factors mentioned above that affected my decision, I had to rank what I valued most to the least. For locations I had Kenya, Australia and USA. I also had to give a grade; poor, okay or good about how I viewed about the factors in those three locations. For the course to pursue I had to check on my background education and experience, what career direction I want to follow and whether the course will enable me to settle in my country of choice.

Deciding on the location

*Ranking on what I value from least to high: * 0=least, 1=medium, 2=high

The ranking was done according to my situation while still in Kenya. For example getting a Visa to study in USA is so complex compared to Australia visa, although cheaper.

Choice: - The decision maker chooses what he/she believes does the most good. therefore I used the above criteria to evaluate the alternatives and choose the best. Going with the ranking above Australia (location) become the high in ranking from USA. It also became high in ranking among things that I value most like income, opportunity to settle, economy, security, and reputation of education system. Although it was poor in terms of tuition fees and cost of living since it is very expensive, I can be able to work and earn more than what I could be earning while in Kenya to support myself. For the course, due to the way the technology is affecting the performance of most organizations, I chose to enrol in Masters of Management Information Systems to give me an in depth knowledge of using technology in better management of organizations.

Implementation: - I started the process to come to Australia. It wasn't easy though, the visa application process was long and demanding, had to take time off from work and it was challenging to gather the finances. Some of my expectations too were not met after I settled here, e.g. life is too expensive, working hours restrictions, jobs available among others.

Simon's normative model faces some criticism/ challenges:

v  There is a disparity between the requirements of the model and the capabilities of the decision maker.

v  Decision makers are faced with biases and uncertainties in decision making which affects their choices.

v  There is no specific agreed upon set of values that could provide criteria for evaluating alternatives.

v  Information about the outcome of choices made is fractional.

v  Decision makers do not have enough time and assets to collect the information required. 

v  The values of the alternatives are affected by the decisions made.

v  While knowledge technology does aid in collection and processing information, it cannot provide for computation required for the normative model. 

References:

http://www.sas.upenn.edu/~baron/papers/normative.pdf

http://bgwomeninict.org/language/bg/uploads/files/documents__0/documents__ccdce0783e140b6ff1b684435f435039.pdf

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