Individuals face daily judgments about decision making, although decisions can be categorized in two dimensions: personal and organizational and then into programmed and non programmed, as described by Vechhio (2006, p.183). Here we will cover rational decision-making model, and discuss how that applies to non programmed / organization decisions, hence this category cover mostly the demanding and strategic decisions held by managers. In resume this is a way of systematic approach to solve problems in way to avoid guesses or mere opinions about problems. The rational decision making relies on following logic as defined by Simm(2002, p.191):
1) Problem description
Formulation correctly the problem, otherwise all the decision making won’t fit on the problem, therefore a detailed problem statement 2) Analyze the problem
At this point starts the decision making, consolidating the available information correlating that with the problem description, thereafter the possible solutions must be identified. 3) Define decision criteria
Here are defined the standards to evaluate the alternatives as well their priorities. 4) Develop alternatives
Once define and analyzed the problem and setup the decision criteria, all possibilities to solve the problem must be identified as an alternative. 5) Evaluate alternatives and select the best
Once developed the alternatives, the must be evaluated regarding the decision criteria previously setup. The evaluation must take in care all the pros and cons for each alternative. 6) Implementation and follow up the selected alternative
More than just implementation of the selected alternative, a follow up approach must be take in place to assure the desired expectation.
On the follow up phase, the
References: Sims, R. R.(2002) Managing Organizational Behavior. Westport, Connecticut : Quorum Books Vecchio, R. P. (2006) Organizational behavior: Core concepts. 6th edition. Mason, Ohio: Thomson South-Western.