Chap 5 MIS

By collecting necessary information and identifying options, a step-by-step decision-making process

may help you make more careful, meaningful judgments. This method enhances the likelihood that
you will select the most attractive option available.
All models help comprehend the nature of decision-making processes in businesses or organizations.
All models are built on specific assumptions that are used to make judgments.

Types of Models

1. Rational / Classical Model

 Identify and define the problem- Though this starting place might seem rather obvious, a
failure to identify the problem clearly can derail the entire process.
 Identify the decision criteria- In this step, the decision maker needs to determine what is
relevant in making the decision.
 Weight established criteria-Because, the criteria identified will be less critical. You will
need to weigh the criteria to create the correct priority in the decision. For example, you
may have a weighted budget.
 Generate a list of alternatives- Once you have identified the issue and gathered relevant
information, it is time to list potential options for deciding what to do. 
 Evaluate the alternatives- After creating a complete list of possible alternatives, each can
be evaluated. Which choice is most desirable and why? Identify both the merits and the
challenges involved in each of the possible solutions.
 Determining the optimal decision

1. Normative Model

The normative decision-making model considers potential limitations such as time, complexity,
uncertainty, and resource scarcity.
There are five different decision-making procedures, each with a different level of engagement by
the leader. 

Decide: The leader solves the problem on his or her own and announces it to the group. Members of
the group may provide information to the leader.

Consult (Personally): The leader addresses each group member individually and presents the
situation. The leader takes notes on the group members' proposals and then chooses whether to
employ the information offered.

Consult (Group): The leader calls a group meeting and communicates the situation to the entire
group. During the meeting, all participants are encouraged to contribute and provide
recommendations. 

Facilitate: The leader calls a group meeting and communicates the situation to the entire group. The
leader guarantees that his or her ideas are given equal weight to those of the group. The decision is
determined by group consensus rather than by the leader alone.
Delegate: The leader does not engage actively in decision-making. Instead, the leader makes
resources available.
Phases of Decision Making

1. Define the problem- Find the real problem and define it. This is a critical phase in the
process. Spend time making sure that you clearly define the problem.
2. Analyze the problem- Classify it and uncover facts about it. Classifying problems includes
identifying who needs to make the decision, who needs to be consulted when making it, and
who needs to be informed about it. 
3. Develop alternate solutions- Come up with familiar and comfortable solutions. Alternative
solutions are the only way to train our imagination.
4. Decide upon the best solution
5. Convert the decision into effective action- ¨Start implementing or building the solution,
complete it in the given period and explain the ready solution well