DECISION-MAKING

THEORY
Michelle C. Padilla
MPA
DEFINITION
 Decision making theory is a theory of
how rational individuals should behave
under risk and uncertainty
 It is the adoption and application of
rational choice for the management of
private, business or governmental
organization in an efficient manner

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Herbert Simon
 The pioneer in the field

 It is a framework that provides a

more realistic view of the world,
where decisions affect prices
and outputs

 It is making a choice between

alternative courses of action

 It can even mean choosing 3

between action and non-action
Stephen Wasby
 A process or sequence of
activities involving stages of
problem recognition, search for
information, definition of
alternatives, and the selection
by an actor(s) of one from two or
more alternatives consistent with
the ranked preferences

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MODELS OF DECISION-MAKING
1. Incremental Change by Charles E. Lindblom
a)Incrementalism
b)Bargaining Approach
2. Rational and Extra-Rational Model by Yehezkel Dror
3. Administrative Rationality by James M. Pfiffner
4. Committee Decisions by Robert F. Bales
5. General Assessment by Flerbert Simon

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Decision making process

• The problem and opportunities are thoroughly

Intelligence investigated

• Alternative solutions were formulated or developed

Design

• Selection of an alternative
Choice

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Two Main Parts

1. Decision
 Choosing the best alternative/solution
2. Implementation
 The action/process itself to effect the decision
made within the organization

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References

 https://www.politicalsciencenotes.com
 https://www.yourarticlelibrary.com/public-administration/administrative-process

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THANK YOU!