Decision Making models

1. Mariz G. Gonzales, RND

2. Decision
-is an action or series of action chosen from a
number of possible alternatives
Decision Making
-is selection of one action from several alternatives

3. Public Organizations
Private Organization
*Control and Direction
Ownership
Funding

4. Assertions and Evidence about Decision
Making in Public Organizations
*Major Decisions in Public Organizations involves:
Complexity
Dynamism
Intervention
Interruption

5. Rational Decision Making Models
Decision Makers should:
Know all relevant goals clearly
Know their preferences among the goals
Can rank order the goals
Examine alternative means for achieving the goals
Choose the means to maximize attainment of
goals

6. The limits of Rationality and Public Sector
Decision Making
• Cognitive limits
• Uncertainties
• Time limits
-because Decision Makers under the condition of
“ Bounded Rationality”

7. Contingency Perspective on Decision Making
Decision Making Context
The degree of which the Decision Makers agree
on goals
The degree to which they understand means-ends
or the cause-effect relationship

8. Additional Alternatives for
Contingency Theories
Prospect Theory (PT)
-proposed as alternative for understanding Risky
Decision Making
-hold a frame around a reference point (Status Quo)
Poliheuristic Theory (PH)
-assumes that it employs both screening processes
and more rational
-focus on development of alternatives and choice

9. Poliheuristic Theory (PH)
Poly- “many” and “Political” nature of Decision
Making
Heuristic- denotes “Shortcuts”

10. Poliheuristic Theory (PH)
Two Decision Making Process
1. Decision Makers cognitively screens the
alternatives
2. Decision Makers compares the alternatives to
make Rational Decision

11. Other Factors Influencing Public
Decision Making
Issue Type/ Salience
• Vital
• Non-Vital
Context: Environmental/External Constraints

12. Decision Making Processes in Public
Organization
Incremental Model
 Recognize the Problem
 Diagnose the Problem
 Identify Alternatives
 Organization makes a formal commitment to the
decision

13. Summary
Public Organization have distinctive context and
characteristics that are relevant to Decision
Making
Highly Rational Decision Procedures
Contingency Theories that take into account
different Decision context
Factors Influencing Public Decision Making
Incremental Model- applied more to Public
Organizations than Private.