1What are the three steps in Simons decisionmaking process R

1.What are the three steps in Simon\'s decision-making process? Relate these steps to an actual decision.

Solution

The three steps of Simon\'s decision making process are:

In the first phase, intelligence and all required information is gathered before the design phase comes in, that relates to listing down all alternatives pertaining to all the information gathered. Lastly, the choice phase lists down the best possible choices before deciding on the best decision.

An example can be thought of a manager deciding whether to sell half of the company to another firm to either expand the company or reduce the size of business. This depends on the estimated revenues the company will earn given that it is bought by another organisation. The manager will thus appoint his financial officers and a team to look into the matter, conduct a research through scientific and analytical techniques and report back whether to go ahead with company being bought or whether to go alone. The manager will according to his own knowledge, take the final decision for the organisation\'s good. There can be several such examples that can be listed down.