Week 8 – Decisions, Decisions, So Many Decisions, Right or Wrong?

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. 

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 20^th 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 23^rd October 2012, <http://abcnews.go.com/blogs/business/2011/10/walmart-cuts-employee-health-care-benefits/>