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DECISION MAKING MODELS

WHAT IS DECISION MAKING:
The process of selecting a logical option from different options is called a decision making
process. It is used to take action to generate a particular result. It is usually considered to be
a rational and logical thinking process.
The first thing you should be aware of is the importance of critical thinking and its direct impact
on effective decision making. Critical thinking can be defined as rising what is subconscious in a
person's reasoning to the level of conscious recognition. Good leaders are usually critical
thinkers as they understand the mechanics of reasoning and are able to use this to manage the
unconscious influences that contribute and affect their decision-making process.
Generally, critical thinkers:

Continually question their own and other people's assumptions, reasons, motivations, and
outlook

Do not focus on contradicting others when questioning but focus on their reasoning and
perspective

Answer questions by asking more questions

TYPESOF DECISION MAKING:
There are two different ways of decision making:

Programmed/ routine decision making:These are routine decisions which are made
several times by managers. These are made by following several rules and principles.
 Example: Deciding to reorder office supplies.

Unprogrammed /urgent decision making:
These are not routine decisions and have to make on some urgent basis or due to some unusual
situations that have not been often addressed. These decisions are made based on information,
and a manger’s intuition, and judgment. Intuition and experience are major factors in these
decisions.
 Example: Should the firm invest in a new technology?

Who will be making the decision? How will team members be involved? Knowing these things allows team members to be fully informed participants in discussions . objectivity."Will we be giving input to the team leader so he can make the decision?" or "Will we need to discuss this topic and come to agreement during this meeting?"  Classical model of decision making: It is a prescriptive model that tells how the decision should be made. It is based on thinking through and weighing up the alternatives to come up with the best potential result. This path includes: . Using such an approach can help to ensure discipline and consistency is built into a decision making process.  Rational model of decision making: Rational decision making models involve a cognitive process where each step follows in a logical order from the one before. Rational decision making is itself a multi-step process. for making logically sound decisions. The process of rational decision making favors logic. The most important factor in successful decision-making is that every team member is clear about how a particular decision will be made. This assumes that managers are logical and rational and suppose that all decisions made will be in the interest of the organization.DECISION MAKING MODELS: Decision-making model describes the method a team will use to make decisions. The approach follows a sequential and formal path of activities. It assumes that managers have access to all sort of information which is needed to reach a decision. from problem identification through solution. It actually provides a structured and sequenced approach to decision making. and analysis over subjectivity and insight.

data and analysis over intuition or desires. such as ethical concerns or the value of altruism. . loyalties.The rational model assumes that:  An individual has full and perfect information on which to base a choice. or sense of obligation. and resources to evaluate each alternative against the others.  Identifying a problem or opportunity: The first step is to recognize a problem or to see opportunities that may be worthwhile.  Measurable criteria exist for which data can be collected and analyzed. time. The rational-decision-making model does not consider factors that cannot be quantified. A rational decision making model is best employed where relatively complex decisions have to be made. It leaves out consideration of personal feelings. Its objectivity creates a bias toward the preference for facts.  An individual has the cognitive ability.

However. . However. we should always remember that whilst the model indicates what needs to be done. in a logical and comprehensive manner. it’s often how things are done that characterizes effective decision making. STRENGTHS AND WEAKNESSES OF THE RATIONAL DECISION MAKING MODEL: The main strength of a rational decision making model is that it provides structure and discipline to the decision making process. Sufficient time spent generating a range of possible solutions. Often with disastrous effects! A second weakness arises if we attempt to use the model in isolation. Paul C. Gathering information: What is relevant and what is not relevant to the decision? What do you need to know before you can make a decision. there are numerous factors which determine our decisions. and solutions were proposed and acted upon too quickly. This is particularly important where complex or important decisions are involved. In many situations decisions have to be made with incomplete and insufficient information. It helps ensure we consider the full range of factors relating to a decision. The principle assumption of the rational decision making process is that human beings make rational decisions. Be creative and positive. many of which are not rational. Nutt’s research illustrates that bad decisions were usually bad because two things were missing: Adequate participation of stakeholders in the decision making process. or that will help you make the right one?  Analyzing the situation: What alternative courses of action may be available to you? What different interpretations of the data may be possible?  Developing options: Generate several possible options. Too often those who should have been involved weren’t.