Explain The Need For and The Nature of Models in Decision Making

Here is my answer to the following question, i hope i'm in the right material understanding situation

Decision making models:

1. The rationality model

Rational decision making steps : http://images.flatworldknowledge.com/bauer_1.1/bauer_1.1-fig11_005.jpg

The decision maker is perfectly and completely rational in every way

The characteristics are :
a. Completely rational by sense
b. Complete and consistent preferences (clear existence of alternatives)
c. Complete awareness of the alternatives
d. Clear probability calculations
e. The best alternative can be determined by computations

2. The social model
The opposite of "economic rationality model" drawn from psychology. Decision making starts from collections of feelings, emotions and instincts that lead into the best alternative.


3. Simon's bounded rationality model

Herbert Alexander Simon (June 15, 1916 – February 9, 2001)

Herbert Simon's 3 steps in decision making

A more realistic alternative to the "economic rationality model", Herbert Simon felt that decision-making behaviour could be described as :
a. Manager attempt to choose the alternatives from the look of their satisfactory level. The satisfying criteria either from adequate profit, shares, or the market and fair price
b. Managers are content with the simplification rather than complexity
c. Managers can make their choices without first determining all possible behaviour alternatives because of the satisfy preferation
d. Managers are able to make decision with simple rule of thumb. These techniques do not make impossible demands upon their capacity for thought