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Chapter: Principles of Management : Planning

Rational Decision Making Model

The Rational Decision Making Model is a model which emerges from Organizational Behavior. The process is one that is logical and follows the orderly path from problem identification through solution.

Rational Decision Making Model

The Rational Decision Making Model is a model which emerges from Organizational Behavior. The process is one that is logical and follows the orderly path from problem identification through solution. It provides a structured and sequenced approach to decision making. Using such an approach can help to ensure discipline and consistency is built into your decision making process.

 

ü  Defining the problem: This is the initial step of the rational decision making process. First the problem is identied and then defined to get a clear view of the situation.


ü  Identify decision criteria: Once a decision maker has defined the problem, he or she needs to identify the decision criteria that will be important in solving the problem. In this step, the decision maker is determining what’s relevant in making the decision.This step brings the decision maker’s

interests, values, and personal preferences into the process.

 

ü Weight the criteria: The decision-maker weights the previously identified criteria in order to give them correct priority in the decision.

 

ü  Generate alternatives: The decision maker generates possible alternatives that could succeed in resolving the problem. No attempt is made in this step to appraise these alternatives, only to list them.


ü  Rate each alternative on each criterion: The decision maker must critically analyze and evaluate each one. The strengths and weakness of each alternative become evident as they compared with the criteria and weights established in second and third steps.


ü  Compute the optimal decision: Evaluating each alternative against the weighted criteria and selecting the alternative with thehighest total score.


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