The administrative model in decision making.

With the administrative model, people besieged by requests are consider as the people in charge, but on the other hand they have litle time to make decisions and therefore seek shortcuts to find acceptable solutions.

According to the administrative model, a decision maker is not trying to optimize, but instead to eliminate potential dangers. While the optimization will require the selection of the alternative solution with the highest value, the decision on the administrative model usually results in finding the first alternative solution with an acceptable result, (ie, an alternative above the minimum acceptable level at a given pressure).

For example suppose we have a car that we want to sell. If the car is priced at € 2,500 and we have 10 offers, we could act rational in which we will determine which tender has the highest value and would we choose the most profitable.

On the other hand, the administrative model will accept the first offer that exceeds our lowest acceptable price. Clearly we can be lead to reduced decision quality, but in doing so we meet our initial position which is to sell over 2,500 € and also save time and effort.
The satisfaction of the demands is a dynamic structure: The manager ambition levels and the number of options determine the point where we could get until we have a satisfactory solution.
It is noted that "satisfaction" is an appropriate strategy when the cost of delaying a decision is high relative to the expected return of the supposed superior alternative. When taking into account the costs of the extensive search-related, it is doubtful whether the best procedure is to search for the best possible price.

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