Models of Financial Decision Making used in Education sector and many other organizations.

1. MODELS OF FINANCIAL DECISION
MAKING
BY:
TAMOOR ZULFIQUAR

3. • The Market Model
• Rational
Model

5. Requires a great deal of time
 Requires great deal of information
 ASSUMES accurate, stable and complete
knowledge of all the alternatives, preferences,
goals and consequences
 Required more experience and judgment power

6. In 1971, Allison described this model as "the
organizational process," in which the
organization's hierarchical structure and
systematized routines, or standard operating
procedures, are the major determinants of the
decision process.
(Equal treatment for all)

7. Allison , 1971,

8. PRODUCTION EFFICIENCY
Productive efficiency is a situation in which the
economy could not produce any more of one good
without sacrificing production of another good.
EXCHANGE EFFICIENCY
If there is a possible trade that would benefit one unit and
in no way harm the other, then further improvement is
possible and the original situation is not economically
efficient. Further trade would increase value people
perceive, and thus increase economic efficiency.

10.  The financial decision making varies depending on the
size of the departments, the functioning options
available, the needs of the departments and
geographical differences.
 Financial decision making involves analyzing the
financial problems that the system faces and deciding
which course of action should be taken. In order to
make financial decisions, we must be able to identify
potential financial problems and analyze the effects of
alternative courses of actions.

11.  http://www.aacrao.org/resources/resources-detail-view/field-notes--6-models-
for-decision-making-in-higher-education
 http://www.nationalforum.com/Electronic%20Journal%20Volumes/Lunenburg,
%20Fred%20C.%20The%20Decision%20Making%20Process%20NFEASJ
%20V27%20N4%202010.pdf
 http://files.eric.ed.gov/fulltext/ED246828.pdf
 http://www.tandfonline.com/doi/abs/10.1080/1360080X.2014.991529#.VpaN
WrZ95kg
 http://www.cps.neu.edu/courses/detail/EDU7256