Classical Model of Decision Making - 2120 Words

International Journal of Business and Management June, 2008 The Classical Model of Decision Making Has Been Accepted as not providing an Accurate Account of How People Typically Make Decisions Bin Li Foreign Languages Department, Guang Dong University of Finance Guangzhou, 510521, China E-mail: viclee_0221@163.com Abstract Decision making is an accepted part of everyday human life. People all make varying importance decisions every day, thus the idea that decision making can be a rather difficult action may seem so strange and unbelievable. However, a large number of empirical studies have shown that most people in organizations are much poorer at decision making. Therefore, people began to pay more attention to understand hot to make a†¦show more content†¦According to the research by Robbins (2003), he considered that classical model of decision making could not fully represent how people make decisions in organizations, because people do not know how accurate the data is used to make decisions, how reliable are the estimates of the probabilities and how useful the data is related to the event. 151 Vol. 3, No. 6 International Journal of Business and Management Besides all above reasons, there are others evidence to challenge classical assumptions, which to demonstrate classical decision making model is not providing an accurate account of how people typically make decisions. In general, based on the research by Robbins (2003), he summarized all the assumptions of classical decision making model illustrated in Chart 2. Robbins (2003) considered that all these assumptions are subjective and can not represent the real situation in the practice. Cole (2004) also agreed with that all these assumptions would be correct as people in a completely perfect world where does not exist. Moreover, all these assumptions would be disadvantages as people could not discover this model entirely relies on the accuracy of the data used and must require qualitative input to give complete picture. Based on the disadvantages of classical model of decision making, in the following section, it is going to stick to the sequence of classical model of decision making to challenge its assumptions in details one by one. 3. Further analysisShow MoreRelatedThe Role Of Classical Rational Models Of Decision Making775 Words   |  4 Pageslearned that when it comes to making conclusions regarding someone else, judging them is not a plausible act. There are, however, decision making processes that can possibly let us understand how an individual comes to difficult decisions. 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