approaches to decision making

	Identify different approaches to decision making.  Quote practical examples to support your answer.
Major approaches	There are two major approaches to decision making which are detailed as under: •     The Classical Model •     The Administrative Model
Classical Model	The classical model of decision making is based on the assumption that managers approach decision making in an objective and rational manner and that they always made decision that are in the best interest of the organization.  According to this model, managers carefully examine every possible alternative and consider the wide range of likely consequences for each choice before selecting the alternative that best fits the organization’s needs.
	In order to do this, managers would need to have complete information about the problem, clearly defined goals, all the information about every possible alternative and consequence, and a logical method of
	weighing each alternative to come to a decision.  However, later researchers pointed out that managers do not actually make their decisions this way.
	Because managers make dozens and some times hundreds of decisions in a day, it is impractical for them to approach every decision in the systematic, logical fashion assumed by the classical model, and they frequently do not have enough information to make a thorough analysis, even if they were so inclined.
	The Classical model is, therefore, prescriptive, presenting an idealized approach to guide managers toward better decision making.  But tools do exist that help managers made more rational decisions.
Adminis-trative Model	The administrative model of decision making is based on the observation that managers do not always approach decision making in a logical, rational way and that they do not always make objective decisions.
	This model was developed by Herbert A Simon in protest that managers can not actually attain the ideal state of completely rational decision making represented by the Classical Model.  To support this model, Simon also described the following two key elements;
	•     real-life decision making bounded rationality - the idea that a manager’s ability to make objective decisions is restricted by time constraints and by cognitive limitations; and
	•     satisficing - Searching for alternatives only until a satisfactory, not an optimal solution is found