Approaches To Decision Making
The following three are the key decision-making approaches in management, that managers use to make decisions in the workplace. Let’s shortly look at them.
Classical Approach
The classical approach to decision-making assumes that managers are entirely rational beings who make decisions logically and objectively. Here are some key points about this approach:
Pros of Classical Approach:
- Structured and Logical: The classical approach provides a structured, step-by-step process for decision-making. It encourages a logical examination of the available information and alternatives.
- Efficiency: This approach is efficient when the decision-making environment is stable and the decision criteria are clear. It assumes that all information is readily available.
- Objective Decision-Making: It promotes objective decision-making by focusing on facts, data, and analysis rather than emotions or personal biases.
Cons of Classical Approach:
- Simplistic Assumptions: The classical approach assumes a perfect decision-making environment, which rarely exists in the real world. It overlooks uncertainties and complexities.
- Inflexible: This approach can be inflexible in situations where the decision criteria are unclear or when there’s a need for creative solutions. It may lead to rigid decision-making.
- Neglects Human Factors: It tends to neglect the human and behavioral aspects of decision-making, such as emotions, intuition, and interpersonal dynamics.
Related: Classical Theory of Management
Administrative Approach
The administrative approach, also known as the behavioral or descriptive approach, acknowledges that real-world decision-making is often less rational and more influenced by human limitations and organizational constraints.
Pros of Administrative Approach:
- Realistic: It offers a more realistic view of decision-making by recognizing that managers have limited cognitive capabilities and often face incomplete or ambiguous information.
- Adaptable: This approach is adaptable to situations where decision-makers must contend with uncertainty and constraints, making it suitable for complex and dynamic environments.
- Satisficing: Instead of seeking the best solution, the administrative approach embraces satisficing, which means choosing a solution that is “good enough” given the available resources and limitations.
Cons of Administrative Approach:
- Potential for Suboptimal Outcomes: Embracing satisficing can lead to suboptimal decisions where better alternatives might exist but are not explored.
- Lack of Clarity: The approach’s emphasis on ambiguity and limited rationality can make decision-making processes less clear and straightforward.
- Overly Descriptive: Some critics argue that the administrative approach is too descriptive and does not provide practical guidance for improving decision-making.
Read More: Administrative Management
Rational Approach
The rational approach is a systematic, logical, and analytical method for decision-making that aims to identify the best alternative among available options.
Pros of Rational Approach:
- Optimal Outcomes: This approach seeks to identify the optimal solution that maximizes value or meets specific criteria, making it suitable for decisions with clear goals.
- Transparency: It provides a transparent process for decision-making, allowing others to understand and evaluate the rationale behind a decision.
- Accountability: The rational approach encourages accountability by ensuring that decisions are based on data, analysis, and objective criteria rather than subjective judgments.
Cons of Rational Approach:
- Assumes Perfect Information: Like the classical approach, the rational approach assumes perfect information and complete knowledge, which is often unrealistic.
- Time-Consuming: It can be time-consuming and resource-intensive, especially when extensive data collection and analysis are required.
- Limited Applicability: This approach may not be suitable for decisions in rapidly changing or uncertain environments, where flexibility and adaptability are essential.
Read Next: 7 Steps of Decision-Making Process in Management

Sujan Chaudhary is an MBA graduate. He loves to share his business knowledge with the rest of the world. While not writing, he will be found reading and exploring the world.