Rational Decision-Making Models and Anthony's Triangle
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This article discusses rational decision-making models and Anthony's triangle in the context of management. It explains the advantages and disadvantages of the rational model and explores alternative models such as the emergent view, incremental approach, and freewheeling optimism. Suitable for management students.
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Running Head: Making0 Management 4/9/2019
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Making1 Introduction Rational decision-making depends on the scientifically obtained information, which can decrease the chance of uncertainties, subjectivity, assumptions, distortions, and errors. It can assist the decision makers to cope with the tough problems in a complex environment. It makes sure that every individual of the organization is cooperating towards the same aims and objectives. It demonstrates the stakeholders about clear targets and strategy to be reviewed (Bryson, 2018). Explanation of the rational model and Anthony’s triangle The rational models have been described below- Bounded rational decision-making models- It is to be stated that a decision maker demonstratesthe bounded rationalitywhen they reflectfewer options that are accessible. In this, a decision maker takes efforts to improve the decisions by choosing the best possible alternative. The rationality of individuals is limited by the knowledge and time required to deal with the problem as they have time constraints and cognitive limitations (Cascetta et al., 2015).
Making2 (Kbmanage.com, 2019) Vroom-Jago decision model- It is a model, which is utilized by the leaders to decide whether they should make a choice individually or incorporate a group. In some business circumstances, it is effective to be the decision maker for the group. It is itself a decision tree and involves a series of seven yes/no questions that defines the significant criteria of the five decision-making processes (Lührs et al., 2018). (decision-making-confidence.com, 2019) These models incorporate a cognitive procedure where each step follows in a logical order and comes up with the best possible result. Anthony's triangle Anthony’striangleisdeterminedasanorganizationalframework,whichdepictsa hierarchical aspect of management structure, stated as several operational decision at the bottom, some tactical decisions in the middle, and significant strategic decisions at the higher level of the triangle (Ho, 2015).
Making3 (Raina's Reflections, 2019) Advantages and disadvantages of the rational model The rational model is a sequential and structured method to decision makers is pursuing to deliverwell-equippedsolutionsutilizingseveralprocedures.Theadvantagesand disadvantages of the rational model are described below- Advantages – The rational model to the decision depends upon logically obtained data that permits informed decision-making as well as decreases the causes for inequitable or poor judgments. It also infuses the decision-making approach with consistency, logic, and discipline. It permits the decision making to reach an optimal decision. It communicates responsibility with everyone in the organization and caters to discuss severe issues, which is broken into simple steps and discusses all possible solutions before arriving at a final decision (Hu, Lai and Dou, 2019). Disadvantages- The rational decision-making approach needs careful consideration, which takes time and thus unsuitable for quick decisions. Inthisapproach,anewstrategyisdeveloped,whichmightrapidlybecome inappropriate in a complex environment.
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Making4 This approach utilizes mostly in making policy and long-term decisions despite operational decisions. Rational decision-making is steeped in traditionalism on the aspect of the carefulness (McCabe, 2016). Alternative models Emergent view- Mintzberg contends that successful and effective strategies can emerge in an enterprise without deliberate and formal prior planning. Under this approach, a strategy might be tried and established as it is executed. This is likely to result in a more short-term emphasis than the rational model. It is stated that to effectively utilizes the emergent approach, the enterprise needs to have a culture of innovation. The pattern is often made up of the intended strategies and emergent strategies (Sims, Powell and Vidgen, 2016). It is stated that strategy might be tried and developed as it is executed. Mintzberg was not shocked at the failure of the intended strategies, which is to be fully realized as deliberate strategies. The emergent strategy is a reaction to the unexpected emergencies and on the other hand, the realized strategy is superior to the intended strategy (Shah et al., 2015). Incremental approach It is the concept of the setting a long-term strategy, which recommends that the enterprises wish to move from position A to position B. The enterprise can take this move in one larger stepforwhichtheycanselectincrementalapproach.Lindblomsuggestedthathow administrators ‘muddle through’ bold strategic initiative. He argued that it is unlikely to perceive a strategic planner wisely to attain predetermined goals. The strategic choice takes
Making5 place by relating potential alternatives against each other, which delivers effective outcome (DeMatthews, Mungal and Carrola, 2015). Freewheeling optimism It is stated that it is the alternative to have a long-term strategic plan is having a little plan. Freewheeling opportunism is an aspect that recommends that an enterprise does not require formal business planning as it should always remain open to opportunities. It is described as a term that is used to define the essentially reactive process of management as a choice for strategic planning. The effectiveness of the rational approach It is to be stated that the rational approach is the most effective approach to offer the standard for effective decision-making. It can be very useful when making a high-value decision that can provide an advantage from the assistance of several tools, knowledge of experts, and processes. It will fulfil the situations of the deductive completeness and logical consistency. It also identifies and accesses the data and information that can enhance cooperation based on the facts. It is to be stated that the Bounded rationality model is the most significant part of the outcome of decisions based on the method that is utilized in making decisions. As compared to the emergent approach in Honda, this states that they are setting up a subsidiary to acquire 250cc and 350cc machines to current motorcycle enthusiasts (Mustafa et al., 2018). Conclusion In conclusion, it has been stated that rational decision-making is effective and profitable in selecting the best alternative accessible. Their main objective is to arrive at a final decision, which will decrease the cost and improve the benefits. In the above, the discussion has been made on the Bounded rationality of decision-making that concentrates on the human mind that evaluates and process the information that is accessible. It is evident that an incremental approach also takes an effective part in strategic planning.
Making6 References Bryson, J.M. (2018)Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. U.S.A: John Wiley & Sons. Cascetta, E., Carteni, A., Pagliara, F. and Montanino, M. (2015) A new look at planning and designing transportation systems: A decision-making model based on cognitive rationality, stakeholder engagement and quantitative methods.Transport policy,38, pp.27-39. decision-making-confidence.com. (2019).Vroom-Jago decision model - Learn how to quickly run through it.. [online] Available at:https://www.decision-making-confidence.com/vroom- jago-decision-model.html[Accessed 10 Apr. 2019]. DeMatthews, D.E., Mungal, A.S. and Carrola, P.A. (2015) Despite best intentions: A critical analysis of social justice leadership and decision making.Administrative Issues Journal,5(2), p.3. Ho, J.K.K. (2015) A review of frameworks for classification of information systems, notably on the Anthony’s Triangle.European Academic Research,3(1), pp.604-616. Hu, C., Lai, S. and Dou, Z. (2019) On the study of a rational expectation model with lagged endogenous variables.Journal of Difference Equations and Applications,25(3), pp.351-372. Kbmanage.com.(2019).BoundedRationalityModelofDecision-Making-What isit? Definition,ExamplesandMore.[online]Availableat: https://www.kbmanage.com/concept/bounded-rationality-model-of-decision-making [Accessed 10 Apr. 2019]. Lührs, N., Jager,N.W.,Challies,E.andNewig,J. (2018)Howparticipatoryshould environmental governance be? Testing the applicability of the vroom-Yetton-Jago model in public environmental decision-making.Environmental management,61(2), pp.249-262. McCabe, D. (2016) ‘Curiouser and curiouser!’: Organizations as Wonderland–a metaphorical alternative to the rational model.human relations,69(4), pp.945-973. Mustafa, M.B., Bistamam, M.N., Mohd, S., Jais, M.A.S.M.A. and Salim, S.S.S. (2018) The Effect of Rational Emotive Behavior Therapy Approach Module in the Conflict Management Of Guidance and.Social Sciences,8(4), pp.923-932.
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Making7 Raina'sReflections.(2019).Anthony’sTriangle.[online]Availableat: https://rainasreflections.wordpress.com/2013/02/19/anthonys-triangle/[Accessed10Apr. 2019]. Shah, S.T.H.,Jamil,R.A., Shah,T.A. andKazmi,A. (2015)CriticalExplorationof PrescriptiveandEmergentapproachestoStrategicmanagement:Areview paper.International Journal of Information, Business and Management,7(3), p.91. Sims, J., Powell, P. and Vidgen, R. (2016) A resource‐based view of the build/buy decision: Emergent and rational stepwise models of strategic planning.Strategic Change,25(1), pp.7- 26.