Legislation is important for a variety of reasons.

Generally speaking, the

primary reason is to set standards and controls and to govern the actions
of people.

Legislation is sometimes referred to as statutory law or traditionally as an

ordinance, and it is law that has been put into place by the actions of a
legislature or governing body. Legislation is valuable to setting societal
standards and norms at all levels of government and can serve several
purposes. It is used to regulate activities, authorize certain actions, supply
resources such as funding, implement sanctions and permit or deny certain
activities. For a Bill to be considered for passage it first has be proposed by a
member of parliament in a Commonwealth jurisdiction or the legislature in
the United States and similar jurisdictions and in the latter case by a member
of Congress or a judge. The item is then discussed among other members of
parliament/the legislature, who decide whether to put the item up for
consideration in passing legislation.
Legislation allows one to govern within the ambit of legislature or statutes.

Without legislature no country can run properly. Our constitution is one of the
legislatures, very important that allows India to remain a republic with so many diverse
inhabitants. While one may not appreciate this fact because most of the times these
rules are intangible to the common public,but they have laid foundation for our
nation.We should be extremely grateful to our astute legislatures for drafting such an
impeccable piece of laws.

The facilities management (FM) sector is responsible for the welfare of large numbers of
workers who, in turn, deliver essential services to provide people with safe, comfortable
and efficient working environments. Appropriate systems and regulations are needed to
enable FM staff to be the best they can be – ultimately ensuring the protection of
people, reputation and FM standards.

As the world of work evolves, so too does legislation, designed to ensure that
employers and workers are aware of their mutual responsibilities and to protect the
welfare of employees. There have been a number of recent changes
to employment legislation, which impact the large numbers of employees working
within the FM industry. It is critical that both direct employers and FM partners are fully
conversant with all the changes and imminent legislation. Lack of expertise in this area
can result in a reactive stance which can end up damaging employee relations, leading
to lost productivity and unnecessary stress on employees, not to mention the cost of
employment tribunal claims.
One of the many reasons companies outsource to facilities service providers is to avoid
the obligations and complications of employment legislation and staffing issues. If
organisations have a facilities management service partner, they should think carefully
about the impact legislation can have – not just in delivering the service and associated
value, but also in the way FM providers meet their obligations to staff.

There are clear advantages to improving employment practices, aided by legislation,

including a more positive, engaged workforce who are fairly remunerated for their work.
My own organisation recognises the positive benefits for staff. We know that looking
after the wellbeing of employees leads to improved retention and commitment, resulting
in a better level of service, and we tend to embrace changes such as these.

Ultimately, open communication about the processes and implications of new legislation
will ensure both parties are suitably positioned to implement changes.

The Legislative branch is authorized to make laws, alter, and repeal them through the power
vested in the Philippine Congress. This institution is divided into the Senate and the House of
Representatives.

Legislative Department

The Legislative Branch enacts legislation, confirms or rejects Presidential appointments,

and has the authority to declare war. This branch includes Congress (the Senate and
House of Representatives) and several agencies that provide support services to
Congress.

 Senate – The Senate shall be composed of twenty-four Senators who shall be

elected at large by the qualified voters of the Philippines, as may be provided by
law.

 House of Representatives – The House of Representatives shall be composed of

not more than two hundred and fifty members, unless otherwise fixed by law,
who shall be elected from legislative districts apportioned among the provinces,
cities, and the Metropolitan Manila area in accordance with the number of their
respective inhabitants, and on the basis of a uniform and progressive ratio, and
those who, as provided by law, shall be elected through a party-list system of
registered national, regional, and sectoral parties or organizations.

The party-list representatives shall constitute twenty per cent of the total number of
representatives including those under the party list. For three consecutive terms after
the ratification of this Constitution, one-half of the seats allocated to party-list
representatives shall be filled, as provided by law, by selection or election from the
labor, peasant, urban poor, indigenous cultural communities, women, youth, and such
other sectors as may be provided by law, except the religious sector.

According to the 1987 Constitution, legislative power shall be vested in the Congress of
the Philippines, which shall consist of a Senate and a House of Representatives.

The Senate shall be composed of twenty-four Senators who shall be elected at large by
the qualified voters of the Philippines, as may be provided by law; the House of
Representatives shall be composed of not more than 250 (unless otherwise fixed by
law), 20 percent of whom must be Party-list representatives.

Congress is responsible for making enabling laws to make sure the spirit of the
constitution is upheld in the country and, at times, amend or change the constitution
itself. In order to craft laws, the legislative body comes out with two main documents:
bills and resolutions.

Resolutions convey principles and sentiments of the Senate or the House of

Representatives. These resolutions can further be divided into three different elements:

 joint resolutions — require the approval of both chambers of Congress and the
signature of the President, and have the force and effect of a law if approved.
 concurrent resolutions — used for matters affecting the operations of both
chambers of Congress and must be approved in the same form by both houses,
but are not transmitted to the President for his signature and therefore have no
force and effect of a law.
 simple resolutions — deal with matters entirely within the prerogative of one
chamber of Congress, are not referred to the President for his signature, and
therefore have no force and effect of a law.

Bills are laws in the making. They pass into law when they are approved by both
houses and the President of the Philippines. A bill may be vetoed by the President, but
the House of Representatives may overturn a presidential veto by garnering a 2/3rds
vote. If the President does not act on a proposed law submitted by Congress, it will
lapse into law after 30 days of receipt.

REPRESENTATION IN THE SPANISH CORTES

Prior to the creation of a legislature in the Philippines, Filipinos, from time to time, were
allowed to sit in the Spanish Cortes as representatives of the Philippine Islands. In
1810, the Spanish government allowed Filipinos to receive Spanish citizenship and
appropriate representation in the Cortes. When the Cadiz Constitution was in full force
and effect, Filipino representation became a standard in the Cortes. However, in 1837,
the liberal Cortes finally abolished representation and declared that overseas territories
of Spain to be ruled by special laws. This loss of representation was one of the main
points that Jose Rizal and other propagandists were fighting for during the Propaganda
movement.

The first Filipino legislature was convened on September 15, 1898 in Barasoain Church,
Malolos, Bulacan. Later known as the Malolos Republic, it drafted the first constitution of
the Philippines, which was also the first democratic constitution in Asia. The Congress
included delegates from different provinces of the Philippines, some elected and some
appointed. It was a short-lived legislature, unable to pass any laws due to the onset of
the Philippine-American War. The first Philippine Republic was ended on March 23,
1901 with the capture of President Emilio Aguinaldo in Palanan, Isabela.

In 1899, United States President William McKinley appointed a commission led by Dr.
Jacob Schurman to study and investigate the conditions in the Philippine Islands. This
would be known as the first Philippine Commission. It was followed by another
investigative commission led by William Howard Taft in 1900, which also had limited
legislative and executive powers. From 1901 onwards, the Philippine Commission
would be regularized. It exercised both executive and legislative powers, with three
Filipino delegates, namely Benito Legarda, Trinidad Pardo de Tavera, Jose Luzuriaga.
After the organization of the Philippine Assembly (see below) in 1907, the commission
stayed on as the upper house of the legislature.

Electoral representation in the Philippines by Filipinos began when the American insular
government allowed partial self-governance by establishing the Philippine Assembly.
The assembly, as the lower house, shared legislative power with the Philippine
Commission, which remained under American control, as membership in the Philippine
Commission was still restricted to appointed American officials. In 1907, still under
American rule, the Philippines held its first national elections for the newly created
representative body, which had an inaugural membership of 81 Filipinos representing
their respective districts. In the succeeding years, the number of districts were
increased to 85 in 1910, and 91 in 1912.

From 1907 to 1946, the Philippine legislature sent a representative to sit in the U.S.
House of Representatives, as resident commissioner. Under Spain, the Philippines had
also been given limited representation in the Spanish Cortes, and like the resident
commissioners, they had the right to speak, but not to vote. The restoration of Philippine
independence in 1946 ended Philippine representation in the U.S. Congress. (Note: To
this day, Puerto Rico still has a resident commissioner in the U.S. House of
Representatives.)

Upon the enactment of the Jones Law in 1916, the Filipinos were subsequently granted
the opportunity to hold other offices in the government. Positions in the Philippine
Senate were opened to Filipinos, with 12 senatorial districts and two senators elected
from each. The inaugural President of the Senate in 1916 was Manuel L. Quezon,
representing the fifth senatorial district. He would hold this position until the
establishment of the Commonwealth of the Philippines in 1935. For the 19 years prior to
the Commonwealth, the Senate presidency was the highest position a Filipino could
hold.

From the first Philippine Commission to the establishment of the Commonwealth of the
Philippines, the Philippine legislature were passing public acts. This form of legislation is
started at Congress, with the approval of the American governor-general of the
Philippine Islands.

On November 15, 1935, Quezon took his oath as the first President of the
Commonwealth of the Philippines, giving control of the executive branch of government
to the Filipinos. It was also in this era that the Supreme Court of the Philippines was
completely Filipinized. By virtue of the 1935 Constitution, the bicameral Philippine
legislature was merged to form the unicameral National Assembly.

Two elections were held under the Commonwealth. The first, in 1935, elected the
President of the Philippines as well as members of the National Assembly; the second,
in 1939, elected only members of the National Assembly. The National Assembly would
be retained until 1941, when a new structure for the legislature was introduced through
a constitutional amendment.

From the Commonwealth period to the inauguration of the Third Philippine Republic, the
Philippine legislature was passing Commonwealth acts (CA). This form of legislation is
started at the National Assembly and approved by the President of the Philippines.

After six years under a unicameral legislature, the Constitution of 1935 was amended,
dividing the National Assembly into two separate houses. The Senate of the Philippines
and the House of Representatives were reestablished, with a Senate President and a
Speaker of the House leading their respective chambers.

The elections for members of these newly created chambers were held in 1941.
However, the onset of World War II prevented the elected members from assuming their
posts and the legislature of the Commonwealth of the Philippines was dissolved upon
the exile of the government of the Philippines.

On October 14, 1943, the Japanese-sponsored Second Republic was inaugurated, with
Jose. P. Laurel as the President. This government followed the newly crafted 1943
Constitution, and reverted the legislature back to a unicameral National Assembly. The
National Assembly of the Second Republic would remain in existence until the arrival of
the Allied forces in 1944, which liberated the Philippines from the Imperial Japanese
forces.

Upon the reestablishment of the Commonwealth in 1945, President Sergio Osmeña

called for a special session of Congress. The first Congress convened on June 9 of that
year, with most of the senators and representatives, who were elected in 1941,
assuming their positions. Manuel Roxas and Jose C. Zulueta served as Senate
President and Speaker of the House, respectively. Not all, however, were allowed to
take their post because some were incarcerated for collaboration with the Japanese.

The inaugural session, was held in a converted school house in Lepanto St., Manila, as
the Legislative Building in Manila was reduced to ruins as an outcome of the war.

On April 23, 1946, national elections were held to choose new members of Congress,
the President, and the Vice President of the Philippines. After the elections the second
Congress of the Commonwealth convened on May 25, 1946. It would only last until July
4, 1946, with the inauguration of the Third Republic of the Philippines.

The independent Republic of the Philippines was finally proclaimed on July 4, 1946 with
Manuel Roxas as President. The Second Congress of the Commonwealth was
transformed into the first Congress of the Republic of the Philippines, also made up of
the Senate and the House of Representatives. This would mark the beginning of the
count of Congresses of the Republic until the imposition of Martial Law in 1972, when
Congress would be dissolved.

This era started the legislation of republic acts which would continue until 1972. Upon
the restoration of democracy in 1986 and the ratification of the 1987 Constitution, the
naming of laws as republic acts would be reinstated.

On September 23, 1972 President Ferdinand E. Marcos issued Presidential

Proclamation No. 1081, placing the entire country under Martial Law. This coincided
with the closing of the sessions of both chambers of Congress. Days before the
scheduled reopening of the Senate and the House of Representatives, Marcos
promulgated the 1973 Constitution, which effectively abolished the bicameral legislature
and replaced it with a unicameral legislature. Opposition legislators reported to the
Legislative Building on January 22, 1973, but found the building padlocked and under
an armed guard.

Under martial rule, Marcos created the Batasang Bayan in 1976, by virtue of
Presidential Decree No. 995, to serve as a legislative advisory council—a quasi-
legislative machinery to normalize the legislative process for the eventual actualization
of the 1973 Constitution. The Batasang Bayan would hold office in the Philippine
International Convention Center (a modernist structure designed by National Artist for
Architecture Leandro Locsin, within the Cultural Center of the Philippines Complex—a
pet project of First Lady Imelda R. Marcos). The consultative body would serve until
1978.

The Batasang Bayan would be replaced in 1978 by an elected unicameral body: the
Interim Batasang Pambansa (IBP), a parliamentary legislature, as provided for in the
1973 Constitution. On April 7, 1978, elections for were held. Those elected to the IBP
would be called Mambabatas Pambansa (Assemblymen) who would be elected per
region, via a bloc-voting system. The IBP opened on Independence Day 1984 in the
Batasan Pambansa in Quezon City.

Members of the Regular Batasang Pambansa (RBP) were elected in 1984, this time at-
large and per province. The RBP held its inaugural session on July 23, 1984.

In 1986, President Marcos succumbed to international pressure and called for a snap
presidential election. Though Marcos and his running mate former Senator and
Assemblyman Arturo Tolentino were proclaimed by the Batasang Pambansa as the
winners of the election, a popular revolt installed opposition leaders Corazon C. Aquino
and Salvador H. Laurel as President and Vice President, respectively.

For both the IBP and RBP, the laws passed would be called “Batas Pambansa,” which
did not continue the previous numbering of Republic Acts.

On March 25, 1986, President Aquino declared a revolutionary government by virtue

of Presidential Proclamation No. 3, s. 1986, which suspended some provisions of the
1973 Constitution and promulgated in its stead a transitory constitution. This effectively
abolished the Batasang Pambansa. A constitutional commission, tasked with drafting a
new charter, was created by virtue of Proclamation No. 9 issued on April 23, 1986.

Following the overwhelming ratification of the 1987 Constitution through a national

plebiscite held on February 2, 1987, the 1987 Constitution finally came into full force
and effect on February 11, 1987. It re-established a bicameral legislature, composed of
the House of Representatives and the Senate, much like the way it was before martial
law. The former, being much larger in composition, reopened in the Batasan Pambansa
while the Senate, still with its 24 members, returned to the Legislative Building. In 1997,
the Senate of the Philippines moved to the GSIS building where it is currently housed.

Laws passed by the bicameral legislature would restore “Republic Acts”, as the laws
were named in the Third Republic (1946-1972). Moreover, it was decided to maintain
the old count, taking up where the last pre-martial law Congress left off. Thus, the last
Congress under the 1935 Constitution was the seventh Congress, and the first
Congress under the 1987 Constitution became the eighth Congress.
17th Congress
Senate Bill No. 1936

EXPANDED SOLO PARENTS' WELFARE ACT OF 2018

Long title

AN ACT AMENDING REPUBLIC ACT 8972 OTHERWISE KNOWN AS THE ACT PROVIDING FOR BENEFITS
AND PRIVILEGES TO SOLO PARENTS AND THEIR CHILDREN, APPROPRIATING FUNDS THEREFOR, AND
FOR OTHER PURPOSES
17th Congress
Senate Bill No. 1903

OLD-AGE PENSION OF SENIOR VETERANS

Filed on August 1, 2018 by Pacquiao, Emmanuel "Manny" D.

AN ACT INCREASING THE MONTHLY OLD-AGE PENSION OF SENIOR VETERANS, AMENDING REPUBLIC
ACT NO. 6948, AS AMENDED

Businesses can play meaningful role in socio-economic

growth
Successful companies often embrace change. Based on visionary leadership, improved
technologies and increased competition, executing and managing is common occurrence in mega-
corporations and small companies. Whether organizations merge, acquire new entities, downsize or
re-brand, these actions involve and affect the people who work there. Change management begins
with analysis followed by a planning process. The key characteristic of successful company
transitions is a systematic approach to move the organization from the current to the envisioned
state.

As individuals, we are all somewhat resistant to change. Even the most carefully orchestrated change
management scenario is not exempt from challenge as change filters through an organization. Employees
handle change differently. Some readily change directions while others require additional coaching and
handholding. Change offers new opportunities recognized by some employees, while others may feel a loss of
autonomy. Many will even question the need for change. To succeed in creating change, it is necessary to
anticipate resistance, identify the roadblocks and focus on resolving employee issues.

Consistent Communication

A key factor in change management is the need to address the people side of transition. While change
initiatives are in progress, it is necessary to communicate on a regular basis, deliver a consistent message and
handle employee queries with open honesty. All levels of management are responsible for delivering the same
on-going message at every opportunity. Repetition is imperative, as employees may not understand the change
process at first. It often takes hearing a message six times or more before workers become fully engaged.

Training and Goal Setting

After announcing and explaining the change initiative, the next step in the process is training. It is the
responsibility of managers to clarify how the communicated changes impact the day-to-day work. Most
importantly, to be able adapt to change employees must understand how their individual jobs support the
company's goals. Additionally, the organization may require new skills sets. Some changes involve training the
entire company on a new business process, technology or set of policies. Goal setting should accompany the
new direction. Establishing timelines and charting change activities helps employees embrace learning new
skills and provides a means of incorporating training into the daily routine.

Recognition

One way to encourage change and help accelerate the process is through recognition. Celebrating progress and
achievements not only brings visibility to the new direction, it is a positive morale booster. Recognizing
individual contribution and team involvement publicly at meetings and other company gatherings is
instrumental in demonstrating the progress of transition. Successful organizations do not wait until the changes
are complete to applaud employee participation. Stopping to celebrate success along the way is a key part of
the process.

Nestlé, a Swiss multinational company which is a signatory of the Women’s

Empowerment Principles, has focused on improving nutrition, access to clean water and
world development as part of its corporate social responsibility across the globe.

‘Part of our business model is to promote sustainability,’ said Janet Voûte, Nestlé Vice
President of Global Public Affairs. ‘Sustainable agriculture and world development is the
way we do business in our production of coffee, chocolates and dairy products where
there is a win-win situation which provides livelihoods to farmers. And you can only
create shared values in the agricultural chain by supporting products made by women.’

Business is the cornerstone of prosperity in society: companies create the resources

that permit

social development and welfare. This report describes the role of business in society,
both in
Sweden and elsewhere. It shows how companies, through their commercial operations,
actively

contribute to progress in society.

We have opted to make a clear distinction between what we call the ‘civic involvement’
of

companies and what is known as corporate social responsibility, or CSR. Civic

involvement

relates largely to the extent to which companies need to cultivate and safeguard their

relationships with various stakeholders. We describe the ways in which stakeholders

influence

business operations and the extents to which they achieve this.

Corporate Social Responsibility is a less broad concept than civic involvement. Even
though

there is no set, internationally accepted definition, this is often described as a voluntary

responsibility that transcends the demands of national legislation and encompasses

human rights

and environmental and social issues. An other definition of CSR uses sustainable
development

as a starting point. In practice, CSR means that businesses meet the demands of
national

legislation and, where this is inadequate, look in addition to a collection of established,

fundamental freedoms and rights that are globally recognised.

Communication is becoming more widespread and reaching even further. Telephony, the
Internet and e-mail, and satellites that transmit TV broadcasts all over the world are all helping
to facilitate contact between people and provide instantaneous information from absolutely
anywhere in the world. Inventions and medical breakthroughs which enhance the quality of life
and lengthen the lives of many people are also becoming more widespread, more quickly than
ever before.

The basic objective of business is to develop, produce and supply goods and services to

customers. This has to be done in such a way as to allow companies to make a profit, which in
turn demands far more than just skills in companies’ own fields and processes.

Astute entrepreneurs often demonstrate an almost intuitive understanding of the synergies that

create success. The social skills of company owners, together with relationships maintained

with customers, suppliers and other business people, are always vital if companies are to be run

well and developed with a view to the future.

Companies improve their resources by developing materials and ideas. The goods and services

produced must meet demands made by customers, other companies or public institutions if

companies are to survive. Profitability results when customers are prepared to pay more for

goods and services than it costs to produce them.

The ability to produce this kind of added value – profit – is the basic prerequisite for business,

but it is also a foundation for prosperity in society. Only profitable companies are sustainable in

the long term and capable of creating goods, services, processes, return on capital, work

opportunities and a tax base. This is what business does better than any other sector. Hence,

companies’ basic commercial operations are the primary benefit they bring to society.

2. characteristics of change

 Internal environment consists of the trends and events within an organization that affect the
management, employees, and organizational culture

 important because it affects what people think, feel, and do at work

 organizational culture is the set of key values, beliefs, and attitudes shared by
organizational members

 The beliefs and values of Starbucks Coffee

 success has to be shared

 people are the most

significant component

 a culture of meaning and loyalty

 grassroots decision making

  Behavioral addition

 is the process of having managers and employees perform a new behavior

 Behavioral substitution

 is having managers and employees perform a new behavior in place of another

behavior

 Change visible artifacts

 such as the office design and layout, company dress codes, etc.

Revolutionary change is the change-by-mandate. You will often see this type
of change in reaction to (1) a leadership change or (2) a crisis. As examples: a
new CIO comes in and reorganizes the department, or the IT department fails
an audit.

That type of change–a high-pressure mandate from above–is what I call a

revolutionary change. Senior leadership says we must do this. Discussion
may be tolerated or allowed, but the improvement is going to take place. It
could be a day, a week, or a month, but the change will occur. The change
occurs because “the boss says so.”

Evolutionary change is change by convincing people. One or more

“change agents” see an opportunity for the organization to improve, and they
pursue it by talking with other people and building a proposal/prototype that is
iteratively shopped around. (Again, if you’re interested in this type of change
see also “Riding the Maturity Model Wave,” which addresses how to conduct
evolutionary change.)

As examples: project management techniques that spread with use or

changes to an incident management process as teams figure out shortcuts.
(Note: these changes are not necessarily documented.)

Contrast that with an evolutionary change. Evolutionary changes occur very

slowly. A change agent helps the organization, often person by person,
understand the change. People comment and the approach is built
collaboratively. People have to buy in to the change. Senior leadership still
needs to be on board, but they are less the driver of the change and more a
coach or cheerleader. (See also my presentation, “Riding the Maturity Model
Wave,” which addresses how to conduct evolutionary change.) The change
occurs in small chunks, almost imperceptibly.
DECISION MAKING MODELS HANDOUT
Page 1 of 2
I. The Rational-Economic (or Classical) Model
Is prescriptive in that it focuses on how decisions ought to be made.
Assumes the decision maker is completely rational (i.e., seeks to maximize the payoff
and utilizes a search process that proceeds in a planned, orderly and consistent
fashion)
and unbiased.
Assumes that the decision maker has available all the information needed to make a
decision and that all possible alternatives are considered.
The decision maker selects the optimum or best choice.
Decision making proceeds through the following sequence of steps: problem
identification, development of criteria against which alternative solutions can be
evaluated, identification of alternative courses of action, evaluation of alternatives,
selection of the best alternative, and implementation.
II. The Administrative (or Behavioral) Model
Is descriptive in that it describes how decisions are actually made.
Decision makers seek to simplify problems and make them less complex because
they are
constrained by their individual capabilities (e.g., limited information processing ability)
and by organizational conditions (e.g., availability of resources).
Assumes that decision makers operate with limited (or "bounded") rationality; this
means
that decision makers are rational within a simplified model which contains fewer
components (e.g., fewer decision making criteria, fewer options, etc.).
Assumes that decision makers identify a limited number of decision making criteria,
that
they examine a limited range of alternatives (only those which are easy to find, highly
visible, have been tried before or are only slightly different from the status quo) and that
they do not possess all the information needed to make a decision.
The decision maker selects a satisficing alternative. This is an alternative that is "good
enough" or satisfactory in that it meets the minimum criteria established for a desired
solution.
Decision making proceeds sequentially: alternatives are examined one at a time and
the
first satisfactory alternative that is found is selected.

Administrative model
This model is more realistic description of decision making of an organization. According to this model, decision
makers have different motivations, incentives, demands but they try to go for shortcuts to find solutions which are
acceptable by everyone due to lack of time. Here the decision maker does not focus on optimization but rather on
Satisficing i.e. choosing an alternative with a value above the minimum acceptable value on a particular constraint.
Satisficing has a shortcoming that it leads to reduction in decision quality but advantage is that it saves time and
effort.
It has an additional benefit when the cost of delaying in decision or looking for other alternatives is high and
expected pay off from other best or superior alternative is comparatively low.
After taking the decision and implementing it, if it is found to be acceptable then organization establishes the given
procedure in to Standard Operating Procedures (SOPs). These SOPs are rules and regulations run by managers to
save the time while solving a problem from elementary level. Managers also use them when organization encounters
similar problem to that of original.
But in reality, SOPs are not time savers always. Organizations cannot be considered as a single entity. Problems are
different according to several departments in an organization which forms their own goals and objectives. These
goals and priorities do not match with overall objectives of the firm.
Therefore organization can be considered as a group of loosely attached sub units having distinct goals and
priorities, different SOPs and each of them having different measures to solve them. Over the time these sub units
become more detached and their goals become more excavated. These divergences are due to distinct
perceptions and priorities and get strengthened by recruitment and rewards. This results in formation of different
groups and coalitions with distinct interests.

The Administrative Model

In the foundation of the administrative model of decision making lies the belief that decision
makers often settle for a less than ideal solution because of time and motivation shortages.
Instead of seeking the best solution that maximizes the value of the decision, the decision maker
accepts the first available 'good enough' alternative producing a value above the minimally
acceptable. The concept of settling for a less than perfect solution is called satisficing.
Because of the limited rationality of the decision maker, the model is also known as the bounded
rationality model. The limited rationality entails that the decision maker has a limited number
of criteria and considers a limited number of alternatives. The degree to which the choice will be
limited will depend upon the values and skills of the decision maker. This model is based on
ideas first expressed by Herbert Simon. He called the decision maker with limited rationality
an Administrative Man and opposed him to a perfect Economic Man, who is takes into
consideration all possible criteria and evaluates all possible alternatives.
In our busy everyday lives, we often employ such approaches without thinking twice. Imagine
yourself sitting in the office on a weekday afternoon and suddenly realizing you have to attend a
birthday party later the same day. Had you remembered about the party earlier, you might have
spent the whole Sunday browsing the shops in search of a perfect gift. Now, your options are
very limited. You have only one shop next to your office and quickly browse the shelves on your
way to the party, settling for the first gift that remotely matches your friend's interest. Will it be
the best gift your friend will receive that day? Unlikely. Did you save yourself from the
embarrassment of showing up empty-handed? Definitely.
The main drawback of this approach is, of course, a lowered quality of the final decision.
However, this model also has a number of benefits. Under certain circumstances, these can well
compensate for the loss in quality. First, this approach requires less time to reach a decision. In a
situation where time is costly or unavailable, settling for a 'good enough' option can be an
efficient strategy. Secondly, reaching for an ideal solution often means more resources have to be
dedicated for information gathering. So a solution reached with the administrative model in mind
is likely to be cheaper.

The classical decision making model

The traditional approach to understanding individual decision making is based upon classical decision
making
theory or the rational economic model (Huczynski & Buchanan, 2001). The classical view of decision
making has
always integrated the concept of rationality and rational decisions within the whole process of discussions
and
prescriptions. Obviously, a rational decision-making process is often suggested as the way in which
decisions should
be made trough those three activities, and it involves the following strictly defined sequential process
shown in
Chart 1 (Heracleous, 1994). It begins with seeking to ask the right questions, continues by discovering
creative
answers and finishes by making sure that the chosen solution is valuable and useful. According to
Hucaynski &
Buchanan (2002:740), “rationality is equated with scientific reasoning, empiricism and positivism and with
the use
of decision criteria of evidence, logical argument and reasoning”. And the rational decisions are decisions
which are
based on the rationality. The advantage of the classical model is to indicate a rational approach that can
be applied to
the business of reaching decisions in organizations.
On the other hand, Lee et, al. (1999:18) considered that “classical decision theory views the decision
maker as
acting in a world of complete certainty.” It assumes that “decision makers are objective, have complete
information
and consider all possible alternatives and their consequences before selecting the optimal solution.”
(Huczynski
2001:738) Based on the definition above, it is clear that classical decision making theory is derived from
several
assumptions. However, all those assumptions are not reality within this modern information age. Herbert
(1981)
agreed that this process is underlain by certain assumptions and characteristics, which are highly
unrealistic in
practice and are widely argued among managerial field.
In the managerial field, how to make a suitable decision is very important. Faulty strategic and operational
decisions
can and must seriously weaken companies’ competitiveness. It is possible misleading to a completely
wrong
developing direction. According to the research by Robbins (2003), he considered that classical model of
decision
making could not fully represent how people make decisions in organizations, because people do not
know how
accurate the data is used to make decisions, how reliable are the estimates of the probabilities and how
useful the
data is related to the event.
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Besides all above reasons, there are others evidence to challenge classical assumptions, which to
demonstrate
classical decision making model is not providing an accurate account of how people typically make
decisions. In
general, based on the research by Robbins (2003), he summarized all the assumptions of classical
decision making
model illustrated in Chart 2. Robbins (2003) considered that all these assumptions are subjective and can
not
represent the real situation in the practice. Cole (2004) also agreed with that all these assumptions would
be correct
as people in a completely perfect world where does not exist. Moreover, all these assumptions would be
disadvantages as people could not discover this model entirely relies on the accuracy of the data used
and must
require qualitative input to give complete picture. Based on the disadvantages of classical model of
decision making,
in the following section, it is going to stick to the sequence of classical model of decision making to
challenge its
assumptions in details one by one.
3. Further analysis in the decision making model
In the first step of classical model of decision making, people have to identify what problem they face or
deal with.
And the model assumes that all the problems are easy to be defined and discovered. In fact, there are
two types of
problem. One is bounded problems, which means that “problems that can be more easily defined and
treated as
separate from the context in which they exist” (Rollinson, 2002Under this situation, people can easily
define
the problem, because the problem is usually small, less important and is not complex without limitation by
time or
cost. Obviously, these kinds of problems will have actual solutions in practical experience; people have
enough
knowledge to define the nature of the problem, such as an organization makes a decision to purchase a
new machine
to replace the old one, which is an easy decision to make without more limitation by others factors. Thus
people can
continue to make decisions through the classical model.
However, there is another kind of problem which is unbounded problems. In general, these kinds of
problem are
much more complex then bounded problems in terms of scale, implications or time of problem. It is
necessary to
recognize the nature of the problem before identification. Rollinson (2002) defined that unbounded
problems are
“ambiguous problems that are harder to define and which cannot easily be separated from the context in
which they
exist” (Rollinson, 2002:254). Therefore, in the first step of the classical decision making process, people
are hard to
clearly define the nature of every problem, so that there is a trap within the first step, because there are
many
unknown factors surrounding the problem. People in any organizations who make decisions have to be
care about
the real nature of the problem and various factors which influence the development of the whole problem
before
defining. Moreover, unbounded problems may be new problems which people do not have any kinds of
knowledge
and solutions. Under this situation, people are lacking knowledge to handle the problem leading to
making wrong
decisions.
To illustrate an unbounded problem in organization, Koran electric giant Samsung Electronics has some
worries
about its ageing product line in the early stage of its development. This scale of the problem is much
larger and has
potentially serious implications for the whole organization, which has strong influence in the future.
However,
although Samsung has noticed about the age of its products, there is little clarity about whether a problem
actually
exists or what its nature might be. Also, management team did not find out a clear solution at that time,
hence a
replacement range of products cannot be selected, because the cost, sales and production implications
are not
known.
In the case of this example, it is proved that the nature of problem is quite different. Only under the
situation, which
people can easily define the actual nature of the problem, people can apply the first step of classical
decision making.
Through discussing the bounded problem and unbounded problem, it is clear that the nature of each of
those
problems is different. It is not just the size of the issue that is significant. Consequently, the first
assumption of
classical model, which problem is clear and unambiguous, did not come into existence.
As to the third stage of the classical model, that comprehensive search for alternative courses of action
and their
consequences is feasible and is carried out is completely wrong. It assumes that the decision maker have
entire
information about the consequences of alternatives. This assumption is the most serious mistake in
decision making
theory. To illustrate its mistake, there are several aspects to challenge decision makers’ abilities and
awareness.
One is that some alternatives will not have occurred to the decision maker, since there are too many.
Cole (2004)
suggested that everything in the world is changed all the time. Decision makers can not catch all the
information by
his or her ability. When decision makers intend to legitimize their chosen courses of action, by the
appearance of
rationality, “empirical studies show that memory search is the initial tactic followed, and only if the problem
persists
is a more extensive search undertaken”(Heracleous1994:18). This statement indicated that most people
making
decision depend on their brain. And this kind of search for possible solutions and their consequences is
largely
informal, qualitative and conditioned by the organizational nature and regulations

3.Tools and Techniques in decision making

Here are some of the common tools and techniques used by people in decision making:

a. Cost/Benefit Analysis
A tool that allows the decision maker to simply compare the costs with the benefits of something
With a cost-benefit analysis, you will take the time to assess all the
costs that will be involved in the decision taken and the benefits
that the organization will gain from this. As a result, entrepreneurs
will go for the decisions that will have a greater benefit, in terms of
the overall net profits in the organization. The sole objective of any
company is to make profits, and as such, every decision taken
should be towards that direction.
b. SWOT
The acronym stands for Strengths, Weaknesses, Opportunities and Threats. It is a very useful and effective tool
for various situations in businesses and organizations wherein the strengths and weaknesses are identified as
well as the opportunities and threats in order to arrive at sound decisions.

The SWOT analysis is commonly used for strategic planning and

eventual decision making. Using SWOT analysis, entrepreneurs
are able to maximize on the strengths of the organization. The
weaknesses are also considered in view of the available
opportunities. The organization will also consider the possible
threats before taking any course of action. This is an effective tool
as it allows entrepreneurs to analyze the company from all
possible angles before taking a decision.
c. Pareto Analysis
This tool is useful in focusing on major causes for changes that will bring about huge benefits to the decision
maker.

this is commonly referred to as the Pareto principle, and it is

common when organizations have to make huge decisions. This is
inclined towards the prioritization in that 20% of the factors that
contribute to 80% of the organization’s growth will be given top
priority. This will give the decisions that have the highest level of
impact top priority. Here is an example of a Pareto analysis
diagram:
d. Stepladder Technique
The technique works by managing the entry or admission of members in a decision making group. It
encourages every member to contribute ideas and alternatives to the group.

e. Starbursting
Starbursting is a process of gaining knowledge on new ideas through brainstorming but the focus is more on
the questions and not on the answers.
f. PMI
PMI tool is used for arriving at quick decisions that do not quite have problems. The acronym stands for Plus,
Minuses, and Interesting points.

g. Paired Comparison Analysis

It is a tool that helps determine the relative significance and feasibility of the alternatives.

h. Decision Trees
With this tool, the decision maker can choose from among alternatives by foreseeing the possible outcomes or
courses of action.

i. 5 Why’s Technique
This is a very simple but effective tool that requires analyzing the problem at hand by asking “Why?” and
“What caused it?” The question “Why?” is asked simultaneously 5 times, thus the term 5 Whys.

j. Six Thinking Hats

Here is another powerful tool that allows the person to look at decisions from various perspectives by thinking
out of the box or going beyond the conventional manner of thinking.

k.Feasibility studies are also used in the strategic planning of the

business. In this case, entrepreneurs will assess the possibility of
creating a specific project and if it can make profits. This is among
the tools that should be used at the very beginning of launching a
new product or service. This will help the company decide if a
particular strategy is ideal or feasible for the company or not.

l.T-Chart
This is also among the best tools that can be used for comparative
analysis. The T-Chart is used to weigh the pros and cons of any
option that the organization may be considering. At the end of it
all, it helps entrepreneurs to make the right decision, having
weighted in all the advantages and disadvantages of all the
available options.

The Significance of Decision Making Tools and Techniques

he various tools for decision making are so useful in providing structured data and close-to-accurate
information and details. There are tools that are primarily used for projecting or forecasting possible outcomes,
so decisions undergo elimination of choices in the process. Other tools are suitable for simulating different
alternatives while some can serve as leading tools for a decision towards a certain direction.
There are techniques that apply to workplace and business settings. Certain tools work best for individual
decision making. It is important to choose the tool carefully and choose the one that is most appropriate to the
situation at hand.