There are three decision models, they are classical, administrative and rational and they serve as a guide making decisions for mangers both individual and group orientated. The classical decision model is a rigid approach to decision making and assumes managers are logical and rational and will make decisions in the best interest of the organization. Administrative, however, argues against classical saying that imperfect facts are provided and decision makers are constrained by bounded rationality and tends to satisfice when making decisions. The rational model simulates to both classical and administrative in rational thinking, yet the process is quite different. Decision makers are asked to follow a series of rational guides in order to result in the best alternative. These guidelines are; recognizing and defining the decision situation, identifying alternatives, evaluating alternatives, selecting the best alternative, implementing the chosen alternative and following-up and evaluating the results. This model helps keep decision makers focused on facts and logic and helps guard against inappropriate assumptions and drawbacks. (Davidson & Griffin, 2000, p307).
The management decisions at SBP govern the future position of the company and are currently undergoing discussions on this topic. The decisions that need to be made for the business to become more competitive and successful need to be made for the next operating period. They also need to be in conjunction with the companies overall objective which states the primary objective of SBP is to maximize returns to our shareholders while minimizing company risk by over exposing to any one industry or geographic area, both nationally and internationally (SBP case study). Two decisions before the board are that regarding the carbon fiber braking and the spillgaurd patents.
The carbon fiber braking decision before the board is weather or not to fund research and development into a new brake lining apparel.
