The classical model, also called the rational model, outlines how managers make decisions from both analytical and conceptual points of view (Daft, R. L. 2010). The following assumptions characterize the classical model: the groups know and agree upon the objectives of the organization; the manager is fully aware of the decision making in a situation, and he operates with certainty. Thirdly, the problem is clearly defined with the decision maker, who is fully aware of all the possible alternatives and their expected outcomes. Finally, the decision maker uses rationality, quantitative techniques and logic to evaluate the alternatives available and selects an optimum alternative (Daft, R. L. 2011). The decision maker selects the alternative that is most likely to maximize the organization’s economic return.
The administrative model is descriptive and outlines how managers make decisions. It is also called neoclassical, organizational or behavioral model (Kansal B.B. & Rao P. 2006). It describes how decision makers or managers should make decisions when they are faced with complex situations; it does not, however, dictate how managers should make decisions in a theoretical ideal. It operates under the following assumptions: the decision associates with vague, conflicting objectives; the managers never recognize that a problem exists. Thirdly, the managers do not pass through an identification process; therefore, they do not have a clear idea of the problem’s nature. Fourth, the problem solvers and decision makers solve their own models where they consider only a few of the possible alternatives since they have limited knowledge of the situation. Fifth, managers use experience as the basis for making decisions, and the decision-making process is significantly affected by social relationships, especially for those at higher levels.
As an entrepreneur in the entertainment industry, the administrative model aligns more to my work. This job involves using one’s creativity and dedication. One has to rely on his or her intuition while making decisions on higher steps of a career. One has to apply several techniques to come up with a good solution.