1. Eclectic Approaches to Decision Making Harrison, Ch. 5
Fred Wenstøp

2. Overview Eclectic approach Models Disciplines
To select what appears to be best from the various models and disciplines
Models
The rational model
The organizational model
The political model
The process model
Disciplines
Philosophy
Psychology
Sociology and social psychology
Law, anthropology and political science
Economics and statistics
Mathematics
Fred Wenstøp

3. The Rational Model Advantages Problems
Emphasizes the difference between facts and values
Helps organizing objectives
Furthers consistency
Makes it possible to handle many alternatives and objectives at the same time
Assists at making values well founded
Helps making values operational
Problems
Many objectives are difficult to quantify
Consequences are often difficult to predict
Managerial preferences defy quantification
Objectives are seldom fixed
To apply the rational model takes time
Fred Wenstøp

4. The Organizational Model (Cyert & March)
Characteristics
Multiple changing, acceptable-level goals
Approximate sequential consideration of alternatives
The first satisfactory alternative evoked is accepted
Avoidance of uncertainty by following policy and procedures and reacting to feedback rather than attempting to predict consequences
Making and implementing choices within procedures and with the use of rules of thumb derived from experience
Principal shortcoming
Does not aim for long-range benefits for the organization
Fred Wenstøp

5. The Political Model Requirements
Only considers policies that differ from existing ones
Small number of alternatives
Restricted number of consequences
The decision problem is continually redefined
Incremental decision making with no clear decision point
Geared towards alleviating current problems rather than achieving long-range benefits
Differences from the organizational model
The functions of setting objectives and search for alternatives are intermingled
Ends and means are not distinct
A decision is good if most decision makers agree on the likely outcome
Minimal analysis of alternatives
Fred Wenstøp

6. The Process Model Features The main recommendation of Harrison’s book
Strong managerial emphasis
Objectives-oriented outcome model
Oriented towards long-term results
Strategic in orientation
The main recommendation of Harrison’s book
Fred Wenstøp

7. The Interdisciplinary Aspects of Managerial Decision Making
Economics
Statistics
Utility and
probability
Social psychology
Sociology
Philosophy
Values
and
ethics
Group
behavior
The
decision-making
process
Environ-
ment
Individual behavior
Models and simulation
Law
Anthropology
Political science
Psychology
Mathematics
Cybernetics
Fred Wenstøp