Simon's Model of Decision Making
Newell and Simon formulated a methodology for human information processing. This model is conceptual in nature and goes hand in hand with the working of a digital computer. According to this model, a human being interacts with the external environment, gets information, and processes them. The initial interaction between the human being and the environment is triggered by stimuli. The sensory organs (receptors) accept the environment and pass it on to the brain (processor). The brain transfers the information so obtained into STM and LTM. Decisions made by the brain are conveyed to the environment by various organs of the human body (effectors) in the form of speech, physical activity, written messages, etc. To illustrate, a poet visualizes a beautiful natural scenario, is totally absorbed in it and the response to this stimulus is a poem that flows spontaneously. The model, as already mentioned, goes hand in hand with the working of a digital computer. A digital computer gets data through one of its input devices ("receptor" in the Newell and Simon model), passes the same to its central processing unit ("brain" in the Newell and Simon model), which in turn, after processing, sends an output through its output unit ("effectors" in the Newell and Simon model). Important information is stored in external memory units. Any human being, in response to a stimulus, reacts and decides what to do. For example, if the share prices are falling the initial reaction is panic. Shareholders then decide either to offload all the shares or wait for the market to pick up. How do they decide on these? Are there any models available that can explain clearly the decision-making process? A well-known model on the human decision-making process was proposed by H.A. Simon. Simon's decision-making model consists of three major stages: Stage I: Problem identification and data collection stage (also called intelligence phase). Stage 2: Identification and planning of alternative solutions (also called as design phase) Stage 3: Selection of a solution from multiple alternatives, implementing and monitoring (also called as choice phase.) To make a rational decision is to decide to do something to achieve a goal; to decide a mean to achieve en end. Means and ends must be considered as connected in a hierarchical chain. Decisions in an organization will be based on premises including both empirical and normative elements. These two different kinds of premises are called factual and value premises. Factual premises are made from knowledge
and information about the organization and its environment. Value premises comprises goals and moral and law-given constraints
Herbert A. Simon was 31 years old when he published his book "Administrative Behavior" (Simon, 76) in 1947. The aim of the book was to show how organizations can be understood in terms of their decision processes (Simon, 76, pp. ix & xxv). His central point is that decision-making is the heart of administration. The language and conceptual framework for describing administration must be based on the logic and psychology of human choice, i.e. economic theory and psychology. Simon got a Nobel's prize in 1978 for his contributions to science within decision processes in economic organizations. His book, "Administrative Behavior", was emphasized in particular (Bakka and Fivesdal, 86, p. 168). Simons work is very comprehensive (and complex). In this section only some of his main points will be described; those which have had influence and impact on the Work Analysis. Simons theories is based on a classical, ideal, and rational model of human decision-making The rational model does not exist in reality, and it is very easy to criticise. According to Simon the problem is not to criticise the model but to understand how decisions are made in organizations and to design organizations with a rationality as reflected in this model in mind. As