Decision Making Companies all over the world are faced with decision daily. Some decisions are small in nature with minimal effects on the company or its employees. While other decisions have a tremendous effect on the entire company. This paper will provide a detailed description of the top three ways to make decisions, such as the rational model, the organizational process model, and the collaborative model. Also, provide some techniques for making decisions. Furthermore, one of these models will be used to achieve a favorable outcome for a BSE Veterinary Service that has found itself at a crossroad when faced with a huge decision for the company. Decision Making Models In 1971, Graham Allison published The Essence of Decision. The categories he developed to understand the decision process are extremely helpful. Essentially, Allison suggested that there are three perspectives that one might use to analyze a major decision, the rational model, the organizational process model, and the collaborative model (Nahavandi, Denhardt, Denhardt, & Aristigueta, 2015, p. 244). The Rational decision making model is a multi-step process for making choices between alternatives. The process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight (Boindless, 2015). An alternative to the rational model is the organizational process model that sees the organization as composed of many loosely allied units, each with its own set of leaders. One
The decision making process includes cognitive processes that eventually lead to a choice in action while taking into consideration the alternative possibilities (Allen, Dorozenko, & Roberts, 2016). Not all choices have to lead to an action. The values and preferences of the person making the choice also comes into play when making the final decision. Problem-solving to obtain a certain goal or satisfactory by a solution is the main reason people go through the decision making process (Stefaniak, & Tracey, 2014). This process has many factors that end with one final result or solution. The decisions made can be rational or irrational and can be determined by explicit or tacit knowledge (Qingyao, Dongyu, & Weihua, 2016). Since the decision making process can be very difficult at time, psychologists have viewed the process in different perspectives to get a better understanding (Rossi, Picchi, Di Stefano, Marongiu, & Scarsini, 2015). The different perspectives include; psychological, cognitive, and normative or communicative rationality.
Decision-making in the workforce is a process of responsibilities used by upper management to implement, enforce rules, regulations, and maintain a successful environment. Decision-making implemented more effectively by making a plan, thinking it through, accepting more than one opinion and determining what is best. However, decision-making often utilized more effectively by opening doors of opportunities for a suggestion, question, discussion, and feedback. Although, more involvement helps improve understanding, utilize behavior skills and present opportunities for better communication. Everyday life consists of decision-making, the right decision may not always be applied, but ensure room for improvement and opportunity. Individuals approached decision-making in many different ways. As stated by (Jones, Graham, & Bateman, 2006) decision making is a procedure used to recognize a problem, weigh the alternatives and evaluate a solution in which, certain situations will require different approaches to become effective.
Before making an important decision, it is very important to set up clear goals of the decision. In the prompt, the town of Surette must decide whether to convert the abandoned building into a private office space or a new community center. The town has developed two distinct goals they want to accomplish through the decision. One of the goals is to gain revenue from the conversion of the building. The other goal is to increase the standard of living for the citizens of Surette. This is a very difficult decision because each option has its strengths and weaknesses. Nevertheless, we can simplify this decision by employing the rational decision making model discussed in our textbook. In order to reach a rational decision, I will review the information provided in the
Rational decision is a state of being agreeable to reasons. The correct decision is not just reasoned but it is also optimal for solving a problem. Mr Weekes, the operation manager, employed series of analytical steps to review possible outcomes for problems by discussing it with managers to come up withdevise particular courses of action.
It combines many factors or steps in policy process, which usually needs much time to develop public policy. Probably, the most influenced idea about the process is coming from theoretical point of view of policy process. This method is known as rational models. The rational models compromise with the ideal process of policy.
In the rational model, the first step is defining the goals. When we need to make a decision, we have to know the problem. Only defining the problem could focus on the solution. The next step we need is identifying the solution. We should think of the situation and possible solution. The third step is evaluating the solutions. The leader considers the advantages and disadvantages of possible solutions. In addition, the benefits and costs are leveled. The leader will have the most favorable decision. The last step is to implement the solution. If the solution doesn’t work, the leader could begin this model again and improve the solution until the problem is
The rational choice theory states that people make decisions in a rational but also in a self- interested manner (Class Notes 4/4/2017). Bounded rationality is the theory that when individuals make decisions, their rationality is limited by the information they have as well as the time available to make the decision. The time constraints and lack of full information are what differentiates bounded rationality and the rational choice theory. However, the garbage can model is said to represent most real life organizational decisions as they are random and unsystematic (Class Notes 4/4/2017). This model of organizational decision making is a collection of problems and solutions. The problems look
The concept of ‘rationality’ has been talked through the centuries. According to Grey (2013), rationality is a big question because of this proposition which has the meaning and difficulties seem to be defining of a whole set of issues which have resonated through both organisation theory and practice ever since. And rationality is the basis of a decision, rational decision makers are objective and logical, they reach the goal that maximises the value. Not only rationality is important to organisations, and also it can be identified in various kinds of management theories. This essay will introduce the different aspects of the concept of ‘rationality’ and make explanations that how these are recognised in different management theories.
Thinking critically and making decisions are important parts of today’s business environment. It is important to understand how the decision making process works and the steps involved. The nine steps of the decision making process are: identifying the problem, defining criteria, setting goals and objectives, evaluating the effect of the problem, identifying the causes of the problem, framing alternatives, evaluating impacts of the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it
The rational goal model emphasises control and an external focus and views planning, goal setting, productivity and efficiency as effective. Innocent employ experts in all areas from web designers to nutritionists to sales representatives which means everyone works in their specialized field to get the best possible outcomes for the company. This is important as in some
A model of decision making known as the Rational Decision Making Model arises from organization behavior. This includes working through series of five stages path from problem identification and to the solutions.
The difficulties that were accompanied with this approach led to deviation from the rational model. Complexity of modern organizations and the limited cognitive ability of decision makers were most influencing factors in the deviation . The decision makers were unable to operate under perfect rationality conditions. The information about a decision was mostly unavailable or unclear, and open to different interpretations. Also, the criteria of evaluating alternative solutions were not agreed upon. It also required very long time and a lot of energy of the decision makers to pursue a maximizing outcome. These constrains led to a conclusion that the absolute rational model is unreachable.
The focus of my term paper is the decision making process used by today's top-level managers. Top-level managers, such as Chief Executive Officers (CEOs), Chief Operations Officers (COOs), and Chief Financial Officers (CFOs), must make critical decisions on a daily basis. Their choices and the resulting outcomes affect the company, the employees, and the stakeholders. Due to the high importance of their decisions, the process they use to reach them merits a close examination.
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. Identifying criteria is important because what one person thinks is relevant, another may not. Also keep in mind that any factors not identified in this step are considered as irrelevant to the decision maker.
The rational model is a cognitive process which weighs the outcomes and alternatives though a step by step process allowing emotion to be set aside (Rational Decision Making Process, 2015). This process is comprised of five steps which help individuals or groups come to a final qualified decision. The first step is the pre-analysis phase; this includes identifying and defining the situation as well as the desired end results. There are many options available to an individual or group decision maker when it comes to this step. . Utilizing a focus group or brainstorming can give the final decision maker the most reasonable and well thought out options available. Regarding the decision at hand there are many variables that