Describe the decision making model Essay Example | Topics and Well Written Essays - 500 words

Describe the decision making model - Essay Example There are various decision making models; the pure rationality model, disjointed incrementalism model, rounded rationality model, intuitive model, recognition primed model, ultimate model and the cost/benefit analysis model. The pure rationality model is the most rational model in decision making but unrealistic as it is based on unlimited time, resources and knowledge assumption in its implementation. Cost benefit analysis model is a technique to analyze an opportunity to demonstrate the cost saving benefits towards receiving management support and commitment to implement (Tsl.state.tx.us 2010). It is usually carried out to determine how well or poorly an action will turn out. The model is mostly used in making of financial decisions. It encompasses the addition of positive factors and negative results subtraction in determination of the net outcome. It is commonly referred to as running the numbers. A cost benefit analysis finds, adds and quantifies all the positive factors or the benefits in relation to a decision option. It then identifies, subtracts and quantifies all the negative factors normally referred to as costs. The difference of the benefits and the costs of the related decision option is an indication of the viability of the decision option. To ensure the best option is taken, it is always advisable to include al the costs and benefits and proper quantification procedures are carried out. For example when dealing with healthcare decisions, we may require driver services. Drivers are very vital in the running of a health care services center. They are the ones who are major players in ambulance services therefore their well being should be treated with care. The sobriety of the drivers should be ensured as they are usually permitted by law to drive at very high speeds. A health care manager may be faced with the decision of whether to employ a new driver or pay overtime wages to the current drivers. In doing this the manager

Riordan Virtual Organization, Concepts in Strategic Management and Essay

Riordan Virtual Organization, Concepts in Strategic Management and Business Policy, and Competitive Advantages Paper - Essay Example The changing and advancing technology compels Riordan Company to adopt  new strategy and business policies. The corporation should adopt a good strategic plan to achieve its goals and long-term performance. The evaluation and adoption of production expertise is a result of technological advancement (Hill & Jones, 2012). The evolving world economic market calls for companies to transform and adapt to the new environment. Strategic planning is necessary in accomplishing new changes. It lays a framework for business success and objectives. Riordan Company should set its priority and values for the company to realize its mission and goals in the industry. It should improve interaction to bring unity and teamwork that is the root of success. In addition, the company should align duties and priorities that can help in decision-making (Lawrie et al., 2005). Strategic plan focuses on making proper decision for the future. To develop a successful business plan, Riordan should have a well-developed strategy for achieving them. It should focus on the formation, implementation, evaluation and control measures. When doing a strategy planning, an environmental scan is essential. Environmental scan concentrates on factors that affect the company performance externally. Riordan Company being a leading producer in plastic manufacturing is facing environmental pressure from other company in China, USA and the global world. Environmental scanning focuses on economic forces, technology drives, change in government policy and socio-cultural force (Hill & Jones, 2012). The company should train its workers to impart in them the necessary practice skills. The move will also ensure that the workers are competent and well motivated. Environmental scanning takes place in the societal surroundings and industrial atmosphere. To compete with the outside environment, Riordan should lower their prices to attract potential