Which models of decision making describe how managers actually make decisions?

Question: Which models of decision making describe how managers actually make decisions?

There are different models of decision making that describe how managers actually make decisions in various situations. Some of the most common models are:

- The rational model: This model assumes that managers have complete information, clear goals, and unlimited time and resources to choose the optimal solution for a problem. This model is often used for analytical and quantitative decisions, such as financial or operational ones.

- The bounded rationality model: This model recognizes that managers have limited information, time, and resources, and therefore they cannot evaluate all possible alternatives. Instead, they use heuristics or rules of thumb to simplify the decision process and select a satisfactory solution that meets the minimum criteria. This model is more realistic and applicable for complex and uncertain decisions, such as strategic or ethical ones.

- The intuitive model: This model suggests that managers rely on their intuition, experience, and emotions to make decisions quickly and confidently. They do not follow a logical or systematic process, but rather trust their gut feelings and hunches. This model is useful for creative and innovative decisions, such as product development or marketing ones.

- The political model: This model acknowledges that managers have different preferences, interests, and goals, and therefore they engage in power struggles and negotiations to influence the decision outcome. They use persuasion, coalition, and compromise to reach a consensus or a majority agreement. This model is relevant for controversial and high-stakes decisions, such as organizational change or crisis management ones.

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