Decision Making: A Five Step Model Of The Rational Decision-Making Model

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In everyday real life situations, one keeps on making various decisions depending on a number of factors. Thus, decision-making is an integral tool in human life, and one cannot avoid it. In view of this, experts report that individuals make use of varying decision-making models to arrive at a decision that suits them. Here, the writer presents four decision-making models, namely the classical, behavioral, satisficing, and optimizing models. According to Schermerhorn, Osborn, Uhl-Bien and Hunt (2012), "it used to be that group work was confined in concept and practice to those circumstances in which members could meet face to face” (p.151). Rational Decision-Making is a five-step process that starts with recognition and definition of the…show more content…
Regarding this, one starts by identifying a problem such as increasing absenteeism/turnover rate or an opportunity such as the closure of a competing firm. The manager proceeds to set goals that aim at reducing the turnover rate and boosting the employees’ motivation (Griffin, 2015). Imaginatively, the manager generates a list of actions that might lead to the realization of the organizational strategic plans (Fishbein, 1967). Here, the list might be changing the pay, modifying the reward system, providing regular leave and providing training. Precisely, each course of action has associated consequences; thus, the supervisor collects information related to each of the alternatives. Notably, the collected information allows the manager to assess and evaluate the alternatives, systematically, which leads to choosing the best alternative, thus, decision implementation (Beach, 2014). Finally, the manager evaluates the effectiveness of the decision, say provision of training and development avenues, and employs the appropriate control (Griffin,…show more content…
The choice depends on the time and preferred outcome of the decision. Satisficing gives a simple choice by choosing the initial alternative that meets the minimum requirements (Stuttgen, Boatwright and Monroe, 2011). I have used the satisficing model in a previous business that involved selling electronics. There were different target markets for the electronics depending on their disposable income. Some markets were approachable but offered little profit based on their range of prices for the electronics. On the other hand, there was a high-end market where customers could spend more on electronics as long as the devices met their desired qualities. There was little time required to restock the electronics, and the markets were located in different places with a high-end market being further than the low-end market. To beat the restocking deadline, I opted to sell the electronics to the low-end market to avoid losses. Despite getting profit, it was not as high as it would have been in the high-end

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