Management models for decision making: what are they, types and functions

A model represents a structure or a strategy that exists in our world. That is, each reality can become a set of interdependent elements in our mind. In the case of the world of organizations, each section, whether simple or complex, does not escape explanation by models.

Business models for decision making are sets of interrelated elements. The difference between the models is due to the different natures, the different number of elements and relationships between them, their different general purposes, functions and structures.

    What are the business models for decision making?

    Decision making in companies is often defined by the leadership style, the senior management culture and the management model that exists in the organization. Management models simplify the reality of organizations, in order to make better value judgments when making decisions.

    Management models for decision making are organizational management strategies that are used in the direction and development of the system and its processes. Each model is a representation of the reality that it tries to reflect, so when we talk about management we will talk about models that will determine a model, a base of support that in the long term allows the oriented development of the company or the company. organization in general. .’use. .

    We can say today that these managerial models of decision-making allow companies to achieve their strategic objectives, satisfy customers and stand out from the competition. It should be noted, however, that no single model serves to run a business on its own, what makes the difference is a creative application, this is where the key to success lies.

      Type

      We explore three business models that are very common in organizations.

      1. Western model

      If there is one thing that stands out about Western culture, it is that it stands out for its support for leadership styles that focus power on a single person or group, which is very noticeable in the world. organizational.

      Under this model, organizations depend heavily on the leader’s actions. Leadership focuses power on one person who dominates, plans, organizes, directs and controls everything, and is responsible for the effectiveness of the group, using instructions for subordinates to execute them.

      It has the negative aspect that the leader may not trust his team members because individual leadership predominates in the company, they believe that subordinates should not make decisions, but do what she decides. However, if developed in the right way, this model can work very well. In the Western model, a decision maker who does his job well is characterized by the following behaviors:

      • Not only does he manage, he innovates
      • He does not imitate, but tries to be original in his organizational behavior
      • It preserves, but it also develops
      • It focuses on systems and structures, but it focuses even more on people.
      • Exercise control but inspire confidence
      • He sets his sights on public services, but never excludes possible new ideas
      • Maintains a short, medium and long term vision

        2. Oriental model

        In this business model, power and responsibility are shared among all those involved in finding a solution to certain situations. The leader adapts to change, is dynamic, expert in specific areas and creates a teamwork environment committed to achieving goals. The most notable feature of this model is that the leader is another member of the team and everyone is involved in the decision making.

        Among its main advantages we can highlight:

        • Obtain strong leadership

        • Creates and reinforces a positive work culture

        • Leads the team towards interdependence and group synergy

        • Lead meetings characterized by a high level of communication and trust

        • Encourage employees to use their talents

        • It facilitates the decision-making process

        • It helps to solve problems

        • Recognizes and defines opportunities

        • Get the team’s commitment

        • Recognize the skills, weaknesses of the team and try to regain strength

        • You might be interested in: “Psychological support for companies: what it is, its characteristics and what is it for”

        Differences between Western and Eastern models

        In the Western model, the decision-maker feels personally responsible for the success of the section. This person tries to personally think about solutions to problems and impose them on his subordinates, trying to personally control what happens. Suddenly, we can say that the Western decision-maker is content to solve complicated problems.

        In the oriental model, on the other hand, the decision-maker helps team members to increase their sense of responsibility in the management of the section. It enables subordinates to acquire greater capacity and to strive to find solutions to essential problems in their section. In the Eastern model, the insured generates control over the system, not imposes it, allowing his peers, treated on an equal footing, to feel responsible for control and coordination. Here you feel the satisfaction of seeing that the team and the individuals who make it up are successful.

        It is important to note that neither of these models is worse or better than the other, but like decision-makers, it will depend on the strategy and the situation in which the organization finds itself. However, it is suggested to adopt practices that motivate teamwork, personal and professional development, coexistence, motivation and belonging of collaborators.

          3. Intuitive model

          Intuition is a still mysterious phenomenon, on which much research is still necessary to know in depth the neurological processes which underlie it. It is curious that something so present in our lives is still very much ignored, even when it comes to making decisions, although we get most of it from intuition.

          This is why the intuitive management model has garnered some interest lately.

          Intuition can be:

          • Spontaneous: the idea comes alone and suddenly
          • Induced: we have a reason for this to happen
          • Forced: We don’t have a problem to solve, but we are looking for it

          In the intuitive model, the decision-maker must work by letting his ideas flow and, then, using reasoning to detect which ideas are useful and which do not achieve the goal.

          Since each person is expert in their own work, one could say that really the Western model and the Eastern model are not the most applied in the organizational world as managerial models for decision making, but a mixture of the two based, above all, to intuition.

          Bibliographical references

          • GICE, M. (2018). 3.2 Management models for decision making. Retrieved from unit3anàlisisitomadedesiciones.blogspot.com.
          • Learning lumen (s / f). Understanding Decision Making | Management Principles. Taken from courses.lumenlearning.com.
          • Camilo, A. (s / f). Management models for decision making. Retrieved from es.scribd.com.
          • Martínez Jimenez, CM (2016). Reflection article “Management model in decision-making” Cooperative University of Colombia of Arauca Faculty of Administration and Accounting Sciences.

          Leave a Comment