In a theoretical model of decision making, a decision is defined as the process ofselecting one option from among a group of options for implementation. 4A Decisions areformed by a decision maker, the one who actually chooses the final option, in conjunctionwith a decision unit, all of those in the organization around the decision maker who takepart in the process. 4B In this theoretical model, the members of the decision unit reactto an unidentified problem by studying the problem, determining the objectives of theorganization, formulating options, evaluating the strengths and weaknesses of each of theoptions, and reaching a conclusion. 4C Many different factors can have an effect on thedecision, including the nature of the problem itself, external forces exerting an influenceon the organization, the internal dynamics of the decision unit, and the personality of thedecision maker. 4D During recent years, decision making has been studied systematically by drawingfrom such diverse areas of study as psychology, sociology, business, government, history,mathematics, and statistics. Analyses of decisions often emphasize one of three principalconceptual perspectives (though often the approach that is actually employed is somewhateclectic). In the oldest of the three approaches, decisions are made by a rational actor, whomakes a particular decision directly and purposefully in response to a specific threat fromthe external environment. It is assumed that this rational actor has clear objectives in mind,develops numerous reasonable options, considers the advantages and disadvantages ofeach option carefully, chooses the best option after careful analysis, and then proceedsto implement it fully. A variation of the rational actor model is a decision maker who is asatisfier, one who selects the first satisfactory option rather than continuing the decisionmakingprocess until the optimal decision has been reached. A second perspective places an emphasis on the impact of routines on decisionswithin organizations. It demonstrates how organizational structures and routines such asstandard operating procedures tend to limit the decision-making process in a variety ofways, perhaps by restricting the information available to the decision unit, by restricting thebreadth of options among which the decision unit may choose, or by inhibiting the ability ofthe organization to implement the decision quickly and effectively once it has been taken.Pre-planned routines and standard operating procedures are essential to coordinate theefforts of large numbers of people in massive organizations. However, these same routinesand procedures can also have an inhibiting effect on the ability of the organization to arriveat optimal decisions and implement them efficiently. In this sort of decision-making process,organizations tend to take not the optimal decision but the decision that best fits within thepermitted operating parameters outlined by the organization. A third conceptual perspective emphasizes the internal dynamics of the decision unitand the extent to which decisions are based on political forces within the organization. Thisperspective demonstrates how bargaining among individuals who have different interestsand motives and varying levels of power in the decision unit leads to eventual compromisethat is not the preferred choice of any of the members of the decision unit. Each of these three perspectives on the decision-making process demonstrates adifferent point of view on decision making, a different lens through which the decisionmakingprocess can be observed. It is safe to say that decision making in mostorganizations shows marked influences from each perspective; i.e., an organization strivesto get as close as possible to the rational model in its decisions, yet the internal routinesand dynamics of the organization come into play in the decision
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