Question

What does the Administrative Model of Decision Making (March and Simon’s work) suggest managers do in order to control how people in organizations make routine decisions?

Answer 1

The administrative model of decision making is also known as bounded rationality decision making. It takes into consideration the fact that often managers do not have all possible information and thus it creates an environment of limited knowledge. The decision that needs to be made is often based on this and the outcome needs to be satisfactory.

Thus the managers need to control people in their organization using this model in many cases. The manager in such situation takes into consideration the past data and creates the required alternatives for various decisions. Then among these he/she chooses the first satisfactory decision. This is how a manager tends to make decision in order to control people.

For example, let’s consider the appraisal process a manager conducts. He/she will take the decision to rate an employee based on the past data and then consider the various ratings that can be given to an employee. However, the manager will likely choose the first possible alternative that suits the employee and complete the rating process.