The document describes different models of administrative decision making including the classical model, administrative model, incrementalism, mixed scanning approach, and garbage can theory. It contrasts the classical and administrative models, noting how the administrative model recognizes limitations in rationality due to bounded rationality and imperfect information. Incrementalism and mixed scanning are presented as alternatives that combine rational and incremental approaches. The role of intuition and various heuristics in decision making are also discussed.
This presentation includes the various aspects of decision making , a short view of rational model of decision making and bounded rationality model by Herbert Simon.
The rational model is the first attempt to know the decision-making process.
As per the rational decision-making model, the decision-maker has full or perfect information about alternatives and he devotes sufficient time to understand the situation and make decisions.
A rational decision-making model is a multi-step process for making choices between various alternatives. The process of rational decision-making favors logic, objectivity, & analysis over subjectivity and insight.
This presentation includes the various aspects of decision making , a short view of rational model of decision making and bounded rationality model by Herbert Simon.
The rational model is the first attempt to know the decision-making process.
As per the rational decision-making model, the decision-maker has full or perfect information about alternatives and he devotes sufficient time to understand the situation and make decisions.
A rational decision-making model is a multi-step process for making choices between various alternatives. The process of rational decision-making favors logic, objectivity, & analysis over subjectivity and insight.
5.DECISION MAKING PROCESS :-
Recognizing & defining the situation
Identifying the alternatives
Evaluating the alternatives
Apply the model
Selecting the best alternatives
Conduct a sensitivity of the solution
Implementing the chosen alternatives
Following up & evaluating the result
6.TYPE OF DECISION MAKING ENVIRONMENT
Decision making under certainty
Decision making under uncertainty
Decision making under risk
23.DECISION TREE :
Instances describable by attribute-value pairs
e.g Humidity: High, Normal
Target function is discrete valued
e.g Play tennis; Yes, No
Disjunctive hypothesis may be required
e.g Outlook=Sunny Wind=Weak
Possibly noisy training data
Missing attribute values
Application Examples:
Medical diagnosis
Credit risk analysis
Object classification for robot manipulator (Tan 1993)
25.Bayesian analysis
26.Utility theory :
Step for determine the utility for money :
Develop a payoff table using monetary values
Identify the best and worst payoff value
For every other monetary value in the original payoff table
Convert the payoff table from monetary value to calculate utility value.
Apply the expected utility criterion to the utility table and select the decision alternative with the best expected utility.
5.DECISION MAKING PROCESS :-
Recognizing & defining the situation
Identifying the alternatives
Evaluating the alternatives
Apply the model
Selecting the best alternatives
Conduct a sensitivity of the solution
Implementing the chosen alternatives
Following up & evaluating the result
6.TYPE OF DECISION MAKING ENVIRONMENT
Decision making under certainty
Decision making under uncertainty
Decision making under risk
23.DECISION TREE :
Instances describable by attribute-value pairs
e.g Humidity: High, Normal
Target function is discrete valued
e.g Play tennis; Yes, No
Disjunctive hypothesis may be required
e.g Outlook=Sunny Wind=Weak
Possibly noisy training data
Missing attribute values
Application Examples:
Medical diagnosis
Credit risk analysis
Object classification for robot manipulator (Tan 1993)
25.Bayesian analysis
26.Utility theory :
Step for determine the utility for money :
Develop a payoff table using monetary values
Identify the best and worst payoff value
For every other monetary value in the original payoff table
Convert the payoff table from monetary value to calculate utility value.
Apply the expected utility criterion to the utility table and select the decision alternative with the best expected utility.
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June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
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2. Classical ModelClassical Model
► Identify the problemIdentify the problem
► Diagnose the problemDiagnose the problem
► Identify all possible alternativesIdentify all possible alternatives
► Evaluate potential consequences of alternativesEvaluate potential consequences of alternatives
► Select theSelect the “best” alternative“best” alternative
► ImplementImplement
► EvaluateEvaluate
Means – end analysisMeans – end analysis
Ideal – comprehensive – maximizing strategyIdeal – comprehensive – maximizing strategy
3. Administrative ModelAdministrative Model
► Rationality is bounded by organizationRationality is bounded by organization
► Human mind is limitedHuman mind is limited
► Information is imperfectInformation is imperfect
► ThereforeTherefore
Strive for rationalityStrive for rationality
Pick criteria forPick criteria for “satisfactory” solution vs.“satisfactory” solution vs.
“ideal”“ideal”
► Uses limited classical approachUses limited classical approach
► Means – ends analysisMeans – ends analysis
Herbert Simon –Herbert Simon – “bounded” rationality – “satisfice”“bounded” rationality – “satisfice”
4. Classical vs. AdministrativeClassical vs. Administrative
““Rational/Economic Man”Rational/Economic Man”
Complete set of alternativesComplete set of alternatives
“given” to choose action.“given” to choose action.
Set of consequences attached toSet of consequences attached to
each alternativeeach alternative
Certainty = perfect knowledgeCertainty = perfect knowledge
Risk=choose greatest utilityRisk=choose greatest utility
Uncertainty=problematic - useUncertainty=problematic - use
“worst case scenario.”“worst case scenario.”
Uses aUses a “utility” function or“utility” function or
“preference ordering” that“preference ordering” that
ranks consequences fromranks consequences from
“most” to “least” preferred“most” to “least” preferred
Selects the alternative leading toSelects the alternative leading to
the preferred set ofthe preferred set of
consequences.consequences.
““Satisficing Man”Satisficing Man”
Searches few alternatives untilSearches few alternatives until
one found that is satisfactoryone found that is satisfactory
for the situation at hand.for the situation at hand.
(Defined by conditions and(Defined by conditions and
organization purpose).organization purpose).
Knowledge of consequences isKnowledge of consequences is
always fragmented. Attachingalways fragmented. Attaching
values to consequencesvalues to consequences
requires imagining the future.requires imagining the future.
Selects the first alternative thatSelects the first alternative that
satisfies the conditions of thesatisfies the conditions of the
problem presented.problem presented.
Still strives to select anStill strives to select an
“economically correct”“economically correct”
alternative to achieve greatestalternative to achieve greatest
efficiency.efficiency.
5. IncrementalismIncrementalism
► Means – endsMeans – ends analysis inappropriateanalysis inappropriate
► Objectives – alternativesObjectives – alternatives emerge simultaneouslyemerge simultaneously
► Good solutions = agreementGood solutions = agreement
► Reduce options & consider alternatives similar toReduce options & consider alternatives similar to
status-quostatus-quo
► Limit analysis to differences between status-quoLimit analysis to differences between status-quo
and proposed alternativesand proposed alternatives
► Concrete, practical alternatives vs. theoryConcrete, practical alternatives vs. theory
Lindblom – political arena - conservativeLindblom – political arena - conservative
6. Mixed - ScanningMixed - Scanning
► Focused trial & errorFocused trial & error
► Keep broad end in mindKeep broad end in mind
► Be tentativeBe tentative
► Stagger decisions – decide in stagesStagger decisions – decide in stages
► If uncertain – procrastinateIf uncertain – procrastinate
► Implement more than one alternative & adjustImplement more than one alternative & adjust
► Be prepared to reverse decisionBe prepared to reverse decision
Combines incremental with rational approachCombines incremental with rational approach
Etzioni – adaptive strategyEtzioni – adaptive strategy
7. Incremental & Mixed ScanningIncremental & Mixed Scanning
IncrementalIncremental
Objectives/alternativesObjectives/alternatives
intertwinedintertwined
Means-ends not separableMeans-ends not separable
Good decision = agreementGood decision = agreement
Successive comparisonsSuccessive comparisons
Comparison vs. theoryComparison vs. theory
DescriptiveDescriptive
Mixed ScanningMixed Scanning
Broad guidelines set prior toBroad guidelines set prior to
selecting alternativesselecting alternatives
Broad ends/tentative meansBroad ends/tentative means
Good decision = satisfactoryGood decision = satisfactory
outcomeoutcome
Adaptive satisficingAdaptive satisficing
Theory + comparison +Theory + comparison +
experienceexperience
Descriptive & normativeDescriptive & normative
8. DecisionDecision “irrationality” – Action “rationality”“irrationality” – Action “rationality”
► Rational approach provokes doubt and uncertaintyRational approach provokes doubt and uncertainty
considering conflicting contradictory or incompatible alternatives.considering conflicting contradictory or incompatible alternatives.
► Good management = motivating people, creating aGood management = motivating people, creating a
positive organizational climate, creating social networkspositive organizational climate, creating social networks
and developing powerful organizational ideologies.and developing powerful organizational ideologies.
• Action requires endorsing conclusive/consistentAction requires endorsing conclusive/consistent
organizational ideology and members who displayorganizational ideology and members who display
commitment,commitment, motivation,motivation, andand expectationsexpectations that an actionthat an action
will succeed.will succeed.
• Effective organization action = positive expectations toEffective organization action = positive expectations to
engender motivation and commitment to see actionengender motivation and commitment to see action
through to a successful conclusion.through to a successful conclusion.
• Rational/cognitive processes promote organizationRational/cognitive processes promote organization
structure (standardization) to be efficient.structure (standardization) to be efficient.
• Structure creates inflexibilityStructure creates inflexibility
9. DecisionDecision “irrationality” – Action “rationality”“irrationality” – Action “rationality”
► Limit to favored alternative. ConsiderLimit to favored alternative. Consider
another only to highlight the advantages ofanother only to highlight the advantages of
the favored alternative. (Reducethe favored alternative. (Reduce
uncertainty)uncertainty)
► Search for positive consequences ofSearch for positive consequences of
favored alternative only. (Createfavored alternative only. (Create
enthusiasm & commitment)enthusiasm & commitment)
► Reformulate predicted positiveReformulate predicted positive
consequences as objectives later.consequences as objectives later.
(Establish positive links)(Establish positive links)
► Based on commitment & enthusiasm.Based on commitment & enthusiasm.
(Participation, collaboration, ideology)(Participation, collaboration, ideology)
10. ““Garbage Can” TheoryGarbage Can” Theory
► Decision-making in atmosphere of high uncertaintyDecision-making in atmosphere of high uncertainty
► Considers inherent organization conflictConsiders inherent organization conflict
► Ambiguous goals agreed upon but notAmbiguous goals agreed upon but not
operationalizedoperationalized
May be many & in conflict – may beMay be many & in conflict – may be
“discovered” or emerge“discovered” or emerge
► Four streams of events:Four streams of events:
11. Four Independent Event StreamsFour Independent Event Streams
► Problems – may not lead to solution/may not beProblems – may not lead to solution/may not be
solved if solution appliedsolved if solution applied
► Solutions – ideas proposed for adoption – ifSolutions – ideas proposed for adoption – if
attractive can stimulate search for a problemattractive can stimulate search for a problem
► Participants – come & go – problems & solutionsParticipants – come & go – problems & solutions
can changecan change
► ““Choice” opportunities – occasions whenChoice” opportunities – occasions when
organizations expected to make decisionsorganizations expected to make decisions
When all connect – problem solved if solution fitsWhen all connect – problem solved if solution fits
12. Garbage Can ModelGarbage Can Model
► Helps explain why:Helps explain why:
Solutions proposed to non-existent problemsSolutions proposed to non-existent problems
Choices do not solve problemsChoices do not solve problems
Problems persist in spite of solutionsProblems persist in spite of solutions
So few problems are solvedSo few problems are solved
13. Role of IntuitionRole of Intuition
►HeuristicHeuristic: a commonsense rule (or set of: a commonsense rule (or set of
rules) intended to increase the probability ofrules) intended to increase the probability of
solving some problemsolving some problem
►IntuitionIntuition: instinctive knowing (without the: instinctive knowing (without the
use of rational processes) hunch, suspicion,use of rational processes) hunch, suspicion,
impression, feeling, belief, notion, opinionimpression, feeling, belief, notion, opinion
an impression that something might be thean impression that something might be the
casecase
14. HeuristicsHeuristics
► Availability heuristic – recent events, proximity,Availability heuristic – recent events, proximity,
frequency – good but falliblefrequency – good but fallible
► Representativeness heuristic – traits &Representativeness heuristic – traits &
stereotypes, similarities - discriminationstereotypes, similarities - discrimination
► Affect heuristic – associations, moodAffect heuristic – associations, mood
Implicit Association Test – HarvardImplicit Association Test – Harvard
https://implicit.harvard.edu/implicit/https://implicit.harvard.edu/implicit/