...Rational Decision Making Model Definition: A rational decision making model 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. As the word rational suggests, this approach brings logic and order to decision making. Our rational decision making model consists of a series of steps, beginning with problem/opportunity identification, and ending with actions to be taken on decisions made. According to Ohio State University management professor, Paul C. Nutt, we only get about 50% of our decisions in the workplace right! Half the time they are wrong, so there is clearly plenty of scope to improve on our decision making processes Characteristics of rational decision making: Choosing rationally is often characterized by the following: * Decision making will follow a process or orderly path from problem to solution. * There is a single best or optimal outcome. Rational decisions seek to optimize or maximize utility. * The chosen solution will be in agreement with the preferences and beliefs of the decision maker. * The rational choice will satisfy conditions of logical consistency and deductive completeness. * Decision making will be objective, unbiased and based on facts. * Information is gathered for analysis during the decision making process. * Future consequences are considered for each decision alternative. * Structured questions...
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...Utilizing Rational and Perception Decision-Making A decision could lead us to satisfactory outcomes or, unfortunately a disastrous situation. Especially in the world of business, the complexity and uncertainty of the environment make the process of decision-making very significant in the execution of management. Top managers may differ in style in having decision-making. Some tend to rely on a rational decision making approach while some tend to rely on perceptual decision-making. Some may argue that decision-making is about perception rather than rational, therefore, managers should concentrate on perception decision-making. Instead, these two methods have a completely different process and doctrine. Therefore, due to distinct circumstances, managers should decide which one is more appropriate or even combining the two kind of style to make a wise decision. The following essay will first demonstrate the advantages and disadvantages of both rational and perception decision-making style, then try to examine how they can be combined to optimize the outcome. According to Mintzberg and Wesley (2001), the process of rational decision-making begins with defining the environment, followed by diagnosing the situation, then designing possible alternatives for settlement and finally selecting the optimal solution to undertake. This process emphasizes on planning and analyzing based on known facts. In other words, to begin, managers should first undertake market research in order to...
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...describe the concept of managerial decision-making. It will look specifically at the ‘Rational Decision-Making Model’, exploring the shortcomings of this approach, and will suggest possible ways a manager could overcome these issues when striving to make a rational decision that will bring benefit to an organisation. Throughout this essay, empirical research and examples from academic literature will be presented to illustrate the discussion. Decision-making is arguably the single most important process in an organisation, being a basic task at all managerial levels. (Heraclious 1994) Rational Decision Making can be defined as choices that are consistent and value maximising within specified constraints. (Bergman, Coulter, Robbins & Stagg 2008) The ‘Rational Decision-Making Model’ is a structured process for essentially making a logically sound decision. The model is made up of a series of steps, with the details often varying, but generally including; recognition of the decision requirement, diagnosis and analysis of causes, development of alternatives, selection of alternative, implementation, evaluation and feedback. (Heraclious 1994) A person making a rational decision would be logical, fully objective, and would strive to select an alternative that maximises the likelihood of achieving their goal. (Bergman, Coulter, Robbins & Stagg 2008) There are a number of issues surrounding the effectiveness of the model for rational decision-making, and there has been a considerable...
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...Decisions in Paradise Introduction There are different decision-making styles organizations choose to use when working on the most effective solution. When an organization chooses a decision-making technique, the organization must determine what style would work best. There is a process Innovative Services will use when coming to the solution. The purpose of this paper is to identify how to choose the proper technique, apply the technique, and analyze the steps toward the most effective decision-making style for Innovative Services in Kava. Choosing a Decision-Making Technique For Kava, Innovative Services must choose a decision-making technique, a technique that will show growth in the Kava community. The technique must clarify and define the issues, gather information, and analyze the pros and cons. The decision-making technique must give direction toward the goals with the most probability for success. There are restrictions to resources. With the resources available, the costs, and people involved, the decision-making process must positively affect those involved not only for the decision-making process but to implement the changes made. Applying the Decision-Making Technique Innovative Services is determined to help Kava. To establish a greater presence in Kava, Innovative Services would benefit by using the rational decision-making technique. The greater presence could come in different forms. It is up to Innovative Services to determine what is good for the company...
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...I am a rational decision maker; she prefers to make decisions with facts and reason rather than using intuition. Rational decision making is very strict, it follows each step cognitively to find the best result for the decision. To make a rational decision some use a rational decision making model. This model consists of: first, defining the situation or the decision to be made; second, identify the important principles for the process and result; third, consider all possible solutions; fourth, calculate the consequences of the solutions versus the possibility of satisfying the principles; and finally, choose the best option. This process is very helpful when trying to make the best decision for a very important and/or delicate situation (Decision Making Confidence). Although thinking rationally is good for all decision making situations, at times it does need some emotion and intuition to make the right decision. There are god things and not so good things about making decisions rationally; rational thinking is always in the look for the right decision and the perfect one for that situation, giving multiple ideas on how to solve the situation/problem and the result that might arise from that decision (Decision Making Confidence). Although rational thinkers are always thinking of what might happen after the decision is made and put in action, the world always has other plans and sometimes unexpected plans. Also, rational thinkers require a good deal if time in order to come up...
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...RUNNING HEAD: DECISION-MAKING January 11, 2009 Problem Formulation and Identification Every organization uses its own decision-making style. Some organizations prefer to use a rational style, which centers on facts and figures, and logical and scientific approaches to their problems. Other companies use an intuitive style, which focuses on emotional aspects of problems and gut feelings. Recently, a group of business students observed how decisions are typically made at their own places of employment. Kori at Prescription Solutions, Jacob at Combined Arms Training Center, Isela at Housing Authority of the City of El Paso, and Micah at Brown-Forman where each examined the strategy most often employed at their organizations. It was found that while each has its own particular style, there were many similarities. These working students also found that each style uses its own set of strengths and weaknesses, and explored how a problem can be described to stakeholders in a manner that is sensitive to their perspectives with various style approaches. Rational Decision-Making Rational decision-making is “a deliberate and logical approach” (Robbins, 2004, p. 21). When faced with a decision, a rational thinker will “emphasize facts, details, and rational cause-effect logic” (Robbins, 2004, p. 21). When a decision must be made, Prescription Solutions’ upper management executives consider three logical business factors: customer satisfaction...
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...Significance and Limitations of Rational Decision-making Managers as Decision-makers The Rational Model Non-rational Models Decision-making Process Types of Managerial Decisions Programmed Decisions Non-programmed Decisions Decision-making Under Certainty, Uncertainty and Risk Management Information System vs Decision Support System The Systems Approach to Decision-making Group Decision-making Forms of Group Decision-making Decision-making Techniques Summary Decision-making describes the process by which a course of action is selected to deal with a specific problem. The success of an organization depends greatly on the decisions of managers. There are two major types of models used by managers to make decisions - (1) rational model and (2) non-rational models. In the rational model, managers engage in rational decision-making processes. At the time of decision-making, they possess as well as understand all the information that is relevant to their decision. In contrast, non-rational models of managerial decision-making suggest that limitations of information-gathering and information-processing make it difficult for managers to make optimal decisions. The three non-rational models of decision-making discussed in the chapter are: satisficing, incremental, and garbage-can models. Any decision-making process contains seven basic steps: (1) identifying the problem; (2) identifying resources and constraints, (3) generating alternative...
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...paper from my own personal experience in dealing with decision making models in the workplace. In this paper I will discuss methods on how to effectively use decision making models for decision making in the workplace. From my personal experience with decision making models in the workplace I will discuss my experience from a managers’ standpoint on how to use decision making models. In the workplace there are many different types of decision making models that managers can use. In most cases the decision making models will depend on the situation or problem that arises. When I was employed as an Assistant Store Manager at Rite Aid I had to make decisions on a daily basis. The type of decision making model that I am most familiar with is the rational decision making model. Throughout my career with Rite Aid I used this model on a consistent basis. One of the main reasons why I used a rational decision making model is because it provided the best results relating to decisions that I had to make. “According to (Chris Blake, The Art Of Decisions,2010) “Being more aware of the way we perceive and judge risk in an uncertain business world can help us make better decisions. How The Rational Decision Making Model Helped Me To Make Decisions In The Workplace: From the rational decision making model that I used in the workplace I was able to way out the options by being able to define the situation of the decisions that I had to make. Through this model I was also...
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...The decision making is about both perception and rationality towards the problem or situation. Both decision makings are not perfect in an economic view, and both involve consequences that may arise. The rational decisions presuppose the best possible outcome and also reduce chances of potential risks and biases in the decision making process. Despite its accuracy, most everyday life decisions are made by individual’s perceptions due to its high demand in time and bound rationality. The perceptual decision makings are quick-step thinking process and can be effective in everyday activities. However, these perceptual decisions can be impinged upon the perceptual errors or distortions, leading to failure in selecting right decisions. In economic view, these perceptual decisions can be employed by entrepreneurs or managers to increment their assets of the organisations. Therefore manager should concentrate on both rationality and perception to make more appropriate decision making. The rational decision making is a systematic process in identifying problems and generating most logical, effective choice to address the problem. To make rational decisions, the information must be sufficient and reliable, and low on risk level. The decision’s rationality depends on the specification of models, and different models impose different rational decisions. Managers evaluate these rational decisions and select the optimal decision. Marcel (2011, p. 371) states that a real-life decision problems...
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...RELATION OF PERSONALITY FACTORS AND DECISION-MAKING STYLES OF HAKIM SABZEVARI UNIVERSITY MANAGERS FATEMEH BAHRAMI*, MOHAMMAD AMIRI*, ESLAM PARANDVAR* *Hakim Sabzevari University, Assistant Professor at Department of Educational Psychology, Sabzevar, Iran. **Hakim Sabzevari University, Department of Educational Psychology, Sabzevar, Iran. ***Hakim Sabzevari University, Department of Educational Psychology, Sabzevar, Iran. Pinnacle Research Journals http://www.prj.co.in 46 ABSTRACT The present study was conducted in order to examine the relationship between the personality traits and the decision making styles of the managers of Hakim Sabzevari University. The statistical population includes all the managers of Hakim Sabzevari University who are in-charge of different positions. The number of managers is seventy people, 60 subjects based on Morgan Table were selected using simple random sampling method. The instruments used in the present study are Scott and Bruce General Decision Making Styles Questionnaire (1995) and NEO personality traits questionnaire. In order to analyze the data, description and inferential statistics including Pearson, step by step regression, t test, unidirectional ANOVA and Tokay follow-up test were used. The results indicated that: the marital and single status did not affect the decision making styles of the manager and education and experience only affected the avoidance decision making styles. The extroversion and consciousness...
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...discussion will be conducted on irrational and rational decision making. The terms will be defined and an explanation will be given on how organizational culture impacts a leader’s psychological processes when attempting to diagnose organizational problems. An organization problem will be identified and discussed in related to differences in cultural perspective. A description of the issue and the cultural perspectives that have caused tension will be addressed. Based on the research a recommendation will be given on how leader’s individual organizational members give voice to their cultural perspectives in a way that helps the leader make better decisions to achieve organizational mission and vision. An explanation of the recommendations and action steps that will help leaders make higher quality decisions based on what was discussed will be given. Robbin and Judge discusses the rational decision making model that should be followed to make sound decisions, but has found out the model is not followed by leaders. Robbin and Judge (2011) state “rational decision making model relies on a number of assumptions, including that the decision maker has complete information, is able to identify all the relevant options in a unbiased manner, and chooses the option with the highest utility (p. 178).” “Irrational decision making is without the faculty of reason; deprived of reason (Dictionary, 2011, par. 1).” Irrational decision making is usually deprived of emotion. Robbin and Judge...
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...SUBJECT NAME: Public Administration Question: According to max Weber, legal rational authority is the most rational type of authority. Do you agree with this statement? Give reasons for your answer. The aim of essay is to discuss legal rational authority commonly known as bureacracy. It high lights why legal rational authority is the best way of authority for any professional run organization. The essay also highlights some of the problems of legal rational authority and the solutions that can make it more flexible in communication and decision making Legal rational authority according to Webber was the most rational and most stable of authority. Formal rules and regulations legitimize this authority. People obey orders of the ruler not because they are loyal but because rules and laws stipulate so and must be obeyed Legal rational authority also known as the bureaucratic authority is the form of leadership in which the authority of an organization or ruling regime is largely tied to legal laws. Legitimacy is seen as coming from legal order, meaning the authority follows and obeys the laws that have been enacted and enforced by government. Rationality means the basis by which sound decisions are made by proper reasoning instead of acting on intuition or influence Legal rational authority is the best type of authority reason being unlike these other types of authority, legal rational authority is management based on a formal structure with set rules and regulations which makes...
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...In my experience some decision making groups have a higher chance of groupthink than others. There are several factors that determine whether or not groupthink is likely to happen in a group. First, the type of personality of each member of the group, if you have one member with a dominant personality while others don’t the chances of groupthink go up considerably, this can be prevented by not accepting a dominant personality in the group or adding other dominant personalities to maintain a balance. Second, the lack of a methodological approach, this can be prevented if each member of the group uses common sense ,logic ,and facts to support his or her point of view. Third, when the group takes a long time to make a decision stress starts to increase among all members,...
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...Study: Decision Making at Choco, p137 1. What is the case about? In your own words, summarise the case by highlighting the main issues. 2. Describe the decision making process at ChocCo. Who were the parties involved? Who should have been involved and why? The decision-making process has been highly centralised. The strategic decision to change the shift timings has been made by the top management on the assumption that the workers will accept it. The decision making style should have been consultative, and the workers’ opinions should have been sought before making such an important decision. The Union should have been involved right from the start and their input would have played a valuable role in enhancing the productivity level of employees. 3. How might you have ensured everyone was involved in the decision making process at ChocCo? Some ways include taking a survey of workers’ opinions regarding shift changes, and participation of Union and workers in the decision-making process. Students could look at the satisficing model of decision making. This model is appropriate because the management of ChocCo have inadequate information about the nature of the issue to be decided and also about possible alternatives and their strengths and limitations. While looking at the satisficing model, students could discuss the concept of bounded rationality. Students could also discuss the section on ‘Steps in an effective decision-making...
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...Laroche being prescriptive and descriptive Laroche follows a prescriptive method in arguing for decision making theory. He argues it is a social representation which will improve decision making. In his abstract he writes “The paper argues that […] the concept of organizational action should not be opposed to decision and decision-making. Decision and decisionmaking are best understood as social representations […]. As organization members think and act in terms of decision-making, a theory of organizational action cannot simply do without a theory of decision-making. “ showing clearly that he is prescribing a certain way of looking upon decision-making. This is further strengthened in the conclusion where he for example writes “This paper argued that decision-making is best understood as a process of reality creation through organization members’ representations of their own role and activity.” The extent to which Laroche is prescriptive is debatable however. He acknowledges descriptive factors such as when he claims in conclusion that “no theory of action can develop without integrating the fact that, to a significant extent, organizational members think and act in terms of decision-making... a relevant phenomenon for a theory of action, not a marginal one”. He lists examples from empirical studies in describing the decision-making process: “bureaucratic processes (e.g., Cyert and March 1963, Carter 1971), political processes (e.g.. Bower 1970), psychological...
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