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Discuss the assumptions that underlie the classical and administrative decision making models.

Paper instructions:
1. Discuss the assumptions that underlie the classical and administrative decision making models. Which model more closely aligns with your work and/or management style?
2. Almost all managers are involved in business planning activities. Discuss why planning is important to managers within the organization.
3. As an IHRM director working in a centralized IHRM department, what selection criteria would you utilize to select expatriate managers for your hotels? Tell why you would utilize this selection criteria.
4. As an IHRM director working in a centralized IHRM department, which of the following approaches to staffing would you most likely prefer and why? Ethnocentric, Polycentric, or geocentric.


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Discuss the assumptions that underlie the classical and administrative decision making models

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Q1: Discuss the assumptions that underlie the classical and administrative decision making models. Which model more closely aligns with your work and/or management style?

Decision making is a very crucial process in management. The process helps to settle one alternative as the most suitable to address an identified problem. Classical model is based on the concept of rationality in all processes. Under classical model it is assumed that the problem to be addressed is very clear and understood. In this case all decision makers comprehend the issues and know the origin, causes and implications of every course of action. The model also assumes that all the relevant information is with the decision maker. This leaves out room for speculation or uncertainty. The model also assumes that decision makers are objective and have no room for making mistakes. This leads to rationality in thinking and actions devoid of human failures and errors.

Administrative decision making model is based on the model of a typical organization where hierarchy is observed. This model assumes that there is one person or a small clique who are tasked with making key decisions. This is because organization has structures and systems. It also assumes that the top management should look into the needs of all stakeholders when making decisions. The management must therefore balance all the competing interests. It also assumes that the low level employees are less experienced and may not make proper decisions under conditions of uncertainties and ambiguities.

Administrative decision making model best describes my style. This is because it is based on realities in the business environment that is characterized by uncertainties and market dynamics.

Q2: Almost all managers are involved in business planning activities. Discuss why planning is important to managers within the organization

Planning is a managerial function that determines the success and sustainability of an organization. Managers must be involved in planning in all organizations. Planning is about goal setting. During planning goals are set and aligned with organizational vision and mission. It is the duty of the managers to steer the organization in achievement of its goals. They must ensure that the long term goals are achieved through short term targets by guiding employees to achieve them.

Planning involve strategy development. The managers make strategic decisions that help organizations to compete and survive in an evolving market. Planning function help managers to come up with strategies aimed at countering competition, marketing and expanding market share. Through well planned strategies, managers are able to deploy competitive strategies as outlined by Michael Porter. These include price and cost leadership, market niching and product differentiation.

Planning defines various tasks and how to accomplish them. Effective planning precedes other key managerial functions. These are organizing, leadership and organization control. Through planning, managers are able to come up with strategy implementation process, ensure that resources are available and employees are up to task. With the plans, managers are able to assign tasks, have human resource plans and supervise the implementation of strategies with a view to sustain successes and correct deviations. For example, the managers will have plans on how to measure achievement of set goals and motivate employees who work hard. The managers who plan in each stage have capacity and data needed in the implementation of all action plans and evaluation of the realized results. Managers must therefore be involved in planning. The planning process must be effective and focused on improvement of organizational performance by promotion flexibility, control, proper coordination, and sound time management.

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