BUS101: Decision-Making Models: A Comparative Analysis Report

This report provides an in-depth analysis of two prominent decision-making models: the rational model and the political model. The rational model is presented as a structured, step-by-step approach emphasizing logical and factual decision-making, while the political model is described as an i...Read More

INTRODUCTION TO
BUSINESSE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
Rational decision making model.................................................................................................1
Political decision-making model.................................................................................................2
Comparison between both models..............................................................................................2
Difference between both models.................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
The decision-making is a particular course of action adopted by the organisation to help
them in choosing best path for accomplishing company's objectives. The managers make various
decisions for solving any specific problem or to manage any situation in an efficient way. The
selection of a decision should be based on various factors so that the best alternative can be
adopted which is suitable for the organisation. There are various models on which decision-
making of a manager depends. In this process, managers play the role of change agents because
of which they have to assess before and after effects of decisions so that workplace cannot be
affected in an adverse way (Brandimarte, 2012). Some of the significant models are Rational,
Administrative, Political and Garbage-can model. All models have their individual
characteristics on which its selection depends which can perfectly meet the situation. In the
report, two models of decision-making are selected for further discussion. These are Rational and
Political model of decision making where both the frameworks have been compared and
contrasted in modern context.
Rational decision making model
The Rational model of decision making involves a lengthy and step by step process in
which the selection of choice is done on the basis of various alternatives (Weske, 2012). The
process of decision-making in this model uses logic and facts. Here, the individual has to take
decision by choosing a best solution which is followed by a six step process which is stated
below:
 Defining the problem
 Identifying criteria of decision
 Setting priorities for each criteria
 Development of various alternatives
 Evaluation of alternatives
 Selection of best option
Thus, before going for any decision a manager in the organisation must follow these steps
in a logical manner that will aid in taking right decision (Jeston and Nelis, 2014). The features of
this decision making model are:
1. Problems and objectives are clear to the managers
1

2. Priorities given to decisions are agreed by all concerned people
3. Alternatives available for solution are known
4. Results can be predicted
Political decision-making model
This model is popularly known as Incremental model of decision making. The political
model of decision-making believes that various situations occur in an organisation which has
non alignment and cannot be solved through logical and systematic procedure (Rohloff, 2011).
Therefore, it is necessary to develop a solution through the bargaining process that can reflect a
common agreement between various decisions. The key features of this framework are:
1. The alternatives are based on situations which does not follow particular step.
2. The results cannot be predicted
3. Alternatives found for solution may be opposed by the concerned authorities
Comparison between both models
In case of rational decision making, the problems are generally clear and made as per the
systematic and defined criteria. Similarly, the political or Incremental model also follows a
logical thinking to reach a solution which is based on bargaining process (Dağdeviren, 2010).
Both models have similar aims of solving a particular situation in which the concerned person
uses his abilities and skills to come out with a best choice. In both situations, the manager may or
may not have a number of alternatives to solve the situation. While in other scenario, the
manager may have a lot of alternatives among which he has to choose one of the best. This type
of situation can be handled with the help of good decision-making skills which are necessary in
both the models. For instance, in Tesco, the company is recently facing a situation of declining
profits due to number of factors (Rodriguez, Martinez and Herrera, 2012). These factors may
include increasing competition, weak marketing strategy; unskilled employees etc. in such
condition, a manager of the said company can go for either of two models to improve the current
situation. If the manager goes for first model, he must go through step by step procedure which
starts from defining the problem to choosing from various alternatives. Similarly, if manager
adopts the second model, he will try to apply some tactics which can bring changes in policies
and regulations. For this, he will have to prepare all concerned people so that they can have idea
about it. On the basis of this, they may either favour it or oppose it for which the manager must
2

follow a bargaining process that can help in making them adjustable for change (Van Kleef, De
Dreu and Manstead, 2010).
Difference between both models
The Rational decision-making model follows a particular method to solve a problem. In
other words, said decision-making model is based on rational and logical thinking process to
reach at a solution. While on other hand, the Political model of decision-making does not follow
a set procedure but a best course of action that is applicable according to a specific situation. The
political model does not lay emphasis on a single issue like Rational model (Mu and Li, 2010).
In contrast the incremental framework focuses on multiple issues of intra organisational
difficulties. In rational model, the power of decision making is concentrated in the hands of
central authority while in political model this power can be generally decentralised department
wise. Further, the rational model adopts known alternatives for solving a problem as it is while
political model usually makes some minor changes in available options (Brandimarte, 2012). For
instance, in an organisation like Tesco, the employees may raise their voice against less payment
of wages and may demand pay raise. In such situation, the Political model of decision making
will be more helpful to solve the problem. Manager can take aid of bargaining process to make
workers ready for a common solution instead of following six steps according to rational model.
In such case, there is no relevance of following any step by step process of decision making as it
needs to be solved through some tactics in efficient manner (Dağdeviren, 2010). Thus, there are
various differences between both models according to which a manger must act.
CONCLUSION
The present report has focussed on Decision-making models that have a relevance in
modern context and can imply role of managers in different situations. In this report two models
of decision-making which are Rational model and Political framework has been discussed. The
rational model is based on logical and factual decision making process that is followed by a six
step process. While, the Political decision-making model, the manager makes decision on the
basis of situation and bring changes through negotiations. The both model have their own
relevance and significance. The study articulates various differences and similarities between
both frameworks. On this basis, it can be articulated that applicability of these two decision
3

making theories is based on situations in organisation. Hence, it depends on a specific scenario
that impels the manager to implement the model.
4

REFERENCES
Journals and Books
Brandimarte, P., 2012. Quantitative methods: An introduction for business management. John
Wiley & Sons.
Dağdeviren, M., 2010. A hybrid multi-criteria decision-making model for personnel selection in
manufacturing systems. Journal of Intelligent manufacturing. 21(4), pp.451-460.
Jeston, J. and Nelis, J., 2014. Business process management. Routledge.
Mu, C. and Li, Y., 2010. An intrusion response decision-making model based on hierarchical
task network planning. Expert systems with applications. 37(3), pp.2465-2472.
Rodriguez, R.M., Martinez, L. and Herrera, F., 2012. Hesitant fuzzy linguistic term sets for
decision making. IEEE Transactions on Fuzzy Systems. 20(1), pp.109-119.
Rohloff, M., 2011. Advances in business process management implementation based on a
maturity assessment and best practice exchange. Information Systems and e-Business
Management. 9(3), pp.383-403.
Van Kleef, G.A., De Dreu, C.K. and Manstead, A.S., 2010. An interpersonal approach to
emotion in social decision making: The emotions as social information model. Advances in
experimental social psychology. 42, pp.45-96.
Weske, M., 2012. Business process management architectures. In Business Process Management
(pp. 333-371). Springer Berlin Heidelberg.