Options are always
available but which is the best to choose from? In decision-making, there are
no ‘best’ decisions but instead, decisions are made base on the most ‘logical’
options available. Nutt (1984) claims the most common decision-making process
is the normative model whereby a problem is noticed, followed by analyzing and
observation, and then a decision is made.
There are alternatives
models in irrational decision-making and these models are not the best way in
describing how decision-making is made. The reason? Only because it doesn’t use
the best solution but the solution which is ‘good enough’ to solve an issue
which is known as the traditional
approach (March & Simon, 1958). However, Simon (1987) claims the models
still requires analogical interpretation of the problem or the use of past
experience for present decision-making. Alternative models such as the garbage can model compiles all the
problems, solutions, participants together, and then a decision is made via
intuition accessible relevant info. Not really the best way in decision-making
indeed but it will do if there is insufficient time.
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| Source: http://soulandbluesreport.com |
In relation to
Wal-Mart, a company which once provided full health benefits to even their new
part-time employees now cuts down to a minimal health provider. Wal-Mart’s
mistake in approving its health care benefits wasn’t decided carefully with
proper formulation and conceptual development by studying the future outcome of
both the company and its employees.
Wal-Mart’s health
cover is too costly as they were unable to keep up with the employee’s family
covers as well. The approval in providing health benefits was due to the total
of 1.4 million workers who were unqualified for health care applicant. Hence
Wal-Mart thought of its resolutions and they were successful in solving the
present problem but without further analysis of its future caused a fallback.
This shows how certain factors in decision-making have
to be taken to account to instead of taking the
traditional approach.
Reference:
Greenhouse, S &
Abelson, R, ‘Wal-Mart Cuts Some Health Benefits’, The New York Times 20 October,
viewed 20th October 2012, <http://www.nytimes.com/2011/10/21/business/wal-mart-cuts-some-health-care-benefits.html?_r=1&pagewanted=all&fb_source=message>
Kim, S, ‘Walmart Cuts
Employee Health Care Benefits’, ABC News 21 October, viewed 23rd October 2012, <http://abcnews.go.com/blogs/business/2011/10/walmart-cuts-employee-health-care-benefits/>


