Fundamentals of Management, 8th ed

F I G U R E 4 . 4

The Administrative Model of Decision Making

The administrative model is based on behavioral processes that affect how managers make decisions.

Rather than prescribing how decisions should be made, it focuses more on describing how they are made.

satisficing

The tendency to

search for

alternatives only

until one is found

that meets some

minimum standard

of sufficiency

coalition

An informal alliance

of individuals or

groups formed to

achieve a common

goal

112

Part 2: Planning

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first Saturn cars were being introduced, however, Smith retired. As it turned out, a coali-

tion of senior GM executives had opposed the Saturn concept but had been unable to do

anything about it because Smith was such a powerful product champion. When Smith

left GM, though, the coalition managed to divert resources intended for Saturn to other

GM brands. As a result, new Saturn products were delayed, the brand received weak

marketing support, and it never lived up to expectations.

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The impact of coalitions can be either positive or negative. They can help astute man-

agers get their organization on a path toward effectiveness and profitability, or they can

strangle well-conceived strategies and decisions. Managers must recognize when to use

coalitions, how to assess whether coalitions are acting in the organization’s best interests,

and how to constrain their dysfunctional effects.

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