Herbert Simon's Model of Decision Making

Herbert Simon's Model of Decision Making 
Rationality In Decision making 
Decision - making is a very complex process involving a chain of unending decisions. In the simpler situations analyzing the sequence is easier and therefore a better and rational decision - making  is possible.  In complex situations which in involve a large network of decisions at different phases the rationality in the decision - making is bound to suffer.


Simon emphasizes that all decision -making should be based on rational choices. He defines rationality as one concerned with relation of preferred behaviour alternatives in terms of some system of values whereby the consequences of behaviour can be evaluated. 

This requires that the decision maker should 
●Have knowledge about all available alternatives 
●Be able to anticipate the consequences of each of the alternatives. 

According to Simon there are six different types of rationality viz, . objective, subjective, conscious, deliberate, organizational and personal.


Simon's Argument Against Total Rationality 
Simon rejects the concept of total rationality as it is based on totally unrealistic assumptions.  Total rationality is based on the belief that decision makers are omniscient and they have knowledge about all available options as well as their consequences. Secondly the rational choice school assumes that the decision maker has unlimited computational ability. Finally it believes that the decision maker has the capacity to put in order all the possible consequences. Limitations in the decision makers in terms of skills, habits ,  values and conception of purpose as well as the extent of knowledge relevant to his job. Therefore Simon says that organisations should not start with the concept of total rationality. 

Simon's Argument In Favor of Bounded Rationality 
Simon suggest that instead of total rationality one should work on the basis of bounded rationality . It is in this concept of bounded rationality Simon develops the concept of satisficing . The term satisficing is derived from the words satisfaction and sufficing. As total rationality is inconceivable the executive satisfices with a good enough choice . The decision maker tries to arive at either optimal or fairly good solutions.  Such solutions or decisions may not lead to maximization of organisational goals. Thus Simon has replaced the model of economic man with the model of administrative man.

Programmed and Non-Programmed Decisions 
The programmed decisions are those which are repetitive and routine in nature . For such decisions definite procedures can be worked out. Each decision need not be dealt with separately . In programmed decisions,habits, skills and knowledge about the problem is important. In such decisions, mathematical models and computer can help the decision makers to arrive at rational decisions.

Non-Programmed decisions are in contrast new novel and unstructured.  No cut and -dried methods would be available and each question or issue has to be dealt with separately. Training in skills relevant to the job and innovative ability become relevant and important to develop capacity to take proper and relevant decisions.


Evaluation of Simon's Decision Making Theory 
Although the decision making process is an important Variable in the organizational situation it alone is not adequate to explain the totality of the organizational picture.

Simon's Model of decision -making incorporates and makes use of the logical positivists' distinction between fact and value. This approach has been criticized : 
(a) as reviving in a new guise the discredited politics -administration dichotomy; 
(b) as harmful in its effects on decision -makers; and 
(c) as irrelevant to Simon's main thesis

Simon's efforts to construct a value free science of administration has been criticized because it may lead to the unintended and logically unwarranted result of reviving the policy administration dichotomy in new form and also lead to empirically untenable and ethically unwarranted view of administration as largely instrumental. 

Simon's analysis assumes that administration plays a similar role in all societies. But it is observed from experience that administrative systems in developing countries do not have similar role oriented as their counterparts in developed countries. 

Simon's concept of efficiency  also is subject to frequent criticism. Simon criticize the term equating it with economy.  Others object to the use of the term on the ground that it leads to a mechanical concept of administration and to an inconsistent relationship between means and ends.

Simon's theory of decision making is criticized as being extremely general and while it provides the framework does not supply details to guide to organization planners.  Simon's concept of rationality is also criticized. 

Despite all the criticism the utility of Simon's study in the decision making process in terms of search and comparison and its criteria of maximizing or satisfacting despite the criticism is unquestionable.  Simon's decision making model is an effective tool in the analysis of Decision-making phenomena and to date remains undoubtedly a major breakthrough in the evolution of administrative theory.


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