Managerial decision models: what are they, types and functions?

A summary of the characteristics of managerial decision-making models.

A model represents a structure or strategy that exists in our world. That is, every reality can become a set of interrelated elements in our minds. In the case of the world of organizations, each section, regardless of whether it is simple or complex, cannot escape being explained through models.

Managerial models for decision making are sets of elements linked together by relationships.. The difference that exists between models is due to their different natures, to the different quantity of elements and relations between them, to their different general purposes, functions and structures.

What are management models for decision making?

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

Management models for decision making are organizational management strategies used in the direction and development of the organization's system and processes. Every 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 guideline, a basis of support that eventually allows the oriented development of the company or organization in general that uses it.

Today we can say that these management decision-making models enable companies to achieve their strategic objectives, satisfy customers and stand out from the competition.to satisfy customers and stand out from the competition. It must be said, however, that no single model is enough to guide a company on its own; what makes the difference is a creative application, which is where the key to success lies.

Types

We explore three very common managerial models in organizations.

1. Western model

If there is one thing we can highlight about Western culture, it is that it is distinguished by the fact that it favors leadership styles that concentrate power in a single person or group of people, something that is reflected in a very noticeable way in the organizational world.

Under this model organizations are highly dependent on the actions of the leader. Leadership concentrates power in a single person who dominates, plans, organizes, directs and controls everything, being responsible for the efficiency of the group, using instructions for his subordinates to execute.

Its negative aspect is that the leader may not trust the members of his team, since individual leadership predominates in the company, The leader considers that subordinates should not make decisions, but do what she decides.. However, if developed in the right way, this model can work extremely well. In the Western model, a decision-maker who does his job well is characterized by the following behaviors:

• Does not just manage, but innovates.
• Does not imitate, but tries to be original in his organizational behavior.
• Conserve, but also develop
• Focuses on systems and structures, but concentrates even more on people.
• Exercises control but inspires confidence
• Focuses on profitability, but never rules out potential new ideas
• Maintains a short-, medium-, and long-term vision

2. Eastern model

In this managerial model, power and responsibility are divided among all those involved in the search for a solution to certain situations. The leader adapts to change, is dynamic, is an expert in specific areas and creates an environment of teamwork, committed to the achievement of objectives. committed to the achievement of objectives. The most outstanding characteristic of this model is that the leader is a member of the team and everyone participates in decision-making.

Among its main advantages we can highlight:

• It achieves a strong leadership

• Creates and strengthens a positive work culture

• Directs the team towards interdependence and group synergy.

• Facilitate meetings characterized by a high level of communication and trust.

• Encourages employees to use their talents

• Facilitates the decision-making process

• Helps solve problems

• Recognizes and defines opportunities

• Obtains team commitment

• Recognizes the team's skills, weaknesses and tries to turn them into strengths.

• Differences between the Western and Eastern models

  In the Western model, the decision-maker feels personally responsible for the success of the department.. This person tries to personally think of solutions to problems, and impose them on subordinates, trying to personally control what happens. As a result, we can say that the Western decision-maker feels satisfaction in solving complicated problems.

  In contrast, in the Eastern model, the decision maker helps team members to increase their sense of responsibility in the management of the section.. It allows subordinates to become more capable and to strive to find solutions to the essential problems of their section. In the Eastern model, the manager generates control in the system, not imposes it, allowing his colleagues, treated as equals, to feel responsible for control and coordination. Here there is a sense of satisfaction in seeing both the team and the individuals who make it up succeed.

  It is important to note that neither of these models is worse or better than the other.It is important to note that none of these models is worse or better than the other, but rather, like the styles of decision-makers, 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, motivation and ownership of employees.

  3. Intuitive model

  Intuition is still a mysterious phenomenon, and much research is still needed to understand in depth the neurological processes behind it. It is curious that something so present in our lives is still largely ignored, even when it comes to decision making, despite the fact that we make most of our decisions on the basis of intuition. we make most of them on the basis of intuition..

  This is why the intuitive management model has generated some interest in recent times.

  Intuition can be:

  • Spontaneous: the idea comes on its own and suddenly.
  • Induced: we have a reason for it to arise.
  • Forced: we do not have a problem to solve, but we look for it.

  In the intuitive model it is necessary for the decision maker to work by letting his ideas flow and then using reasoning to detect which ideas are useful and which are not, then using reasoning to detect which ideas are useful and which are not in order to achieve the objective..

  Since each person is an expert in his or her own work, it could be said that the Western model and the Eastern model are not really the most applied in the organizational world as managerial models for decision making, but a mixture of both based, above all, on intuition.