The Decision-Making Process
The Decision-Making Process The rational decision-making model is a series of steps that managers take in an effort to make logical, well-grounded rational choices that maximize the achievement of objec- tives. First identify all possible outcomes, examine the probability of each alternative, and then take the action that yields the highest probability of achieving the most desirable outcome. Not all steps are used in every decision nor are they always used in the same order. The rational decision-making model is thought of as the ideal but often cannot be fully used.
Individuals seldom make major decisions at a single point in time and often are unable to recall when a decision was finally reached. Some major decisions are the result of many small actions or incremental choices the person makes without regarding larger issues. In addition, decision processes are likely to be characterized more by confusion, disorder, and emotionality than by rationality. For these reasons, it is best to develop appropriate technical skills and the capacity to find a good balance between lengthy processes and quick, decisive action.
The descriptive rationality model, developed by Simon in 1955 and supported by research in the 1990s (Simon, 1993), emphasizes the limitations of the rationality of the decision maker and the situation. It recognizes three ways in which decision makers depart from the rational decision-making model:
● The decision maker’s search for possible objectives or alternative solutions is limited be- cause of time, energy, and money
● People frequently lack adequate information about problems and cannot control the condi- tions under which they operate’