In recent years, decision-making models in business organizations have emerged as a significant factor in the determination of the organization's success or failure. Although the employment contract usually leaves the definition of work to job descriptions, supervision, and work rules, it is useful to specify the kinds of behavior organizations require from employees. Organizations require that individuals carry out job assignments dependably, make creative suggestions, and carry out self-training. (Katz, 1958). However, the organization does not obtain all these behaviors simply through hiring the employee. This paper will explore and discuss the most prevalent decision making models in organizations of the 21st century.
Research has noted the distinction between membership and decision making behaviors required by organizations and the quite different sources of these behaviors. In one such study, the motivation to acquire and keep organizational membership from productivity was distinguished (March & Simon, 1958). Membership motivation results from a favorable inducements-contributions balance. That is, applicants must perceive that what they get from the organization at least balances what they must give to it. Employees must perceive a continuing favorable balance if they are to remain members. The motivation to perform represents a much more complex psychological contract between the individual and the organization involving perceived alternatives, perceived consequences of these alternatives, and individual goals (March & Simon, 1958). Organizations have no choice but to provide membership motivation if they wish to remain organizations. .
Process or theories explain the operation of motivation, or the factors that influence an individual to choose one action rather than another. Process theories are subdivided into cognitive and non-cognitive approaches. Cognitive theories see behavior as involving some mental process.
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