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Free Classical and Administrative Decision-Making Essay Sample

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The classical decision-making model is a normative model and is based on economic assumptions. It gives the managers a guideline on how to arrive at an ideal conclusion for the organization; but does not, however, dictate how they should actually make decisions. This model operates under the following assumptions: the goals that the decision maker intends to accomplish are already discussed and agreed on; he/she should strive for conditions that are certain and gather complete information; there is criteria set for evaluating alternatives, thus, he selects the best alternative to maximize the economic return comeback to the company; and the decision maker uses logic to order preferences, assign values, evaluate alternatives and finally make good decision to maximize the organizational goals’ attainment (Daft and Lane, 2009).

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The administrative model is descriptive, relies on the organizational factors influencing individual decisions; it proves to be more realistic for non programmed, complex decisions than the classical model. The assumptions are: decision goals are conflicting, vague with no consensus among managers. The managers are not aware of the opportunities and problems existent in the organization; they do not always use rational procedures, or, when used, they focus on a simple view of that problem and do not cater for the complex organizational events; managers have limited alternatives due to information, human and resource constraints; and due to the limited information accompanied by the vague criteria, managers tend to settle for just a satisfactory rather than maximizing solution (Daft, 2008).

As a hospital staff member, the classical method is the best for my work and management style. The medical costs are always fluctuating with time, while patients have differing payment abilities. A patient covered by insurance does not have to pay upfront to see the doctor as opposed to those who are not covered. Drugs can only be given to those able to pay. For those who are not able, we can use a special fund to pay for their drugs though we have to get approval from a chief medical director – cost-benefit analysis helps him in making his decision. This aids in impartially caring for the poor and adhering to the rational budget restriction that is needed to maintain the financial solidity of this institution.

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