The principles involved in managerial decision making and effective problem solving.
The Rational Decision Making emerges from Organizational Behavior. The process is one that is logical and follows the orderly path from problem identification through solution. The Rational Decision Making is a seven step model for making rational and logical reasons: Define the problem
The very first step which is normally overlooked by the top level management is defining the exact problem. Though we think that the problem identification is obvious, many times it is not. The rational decision making model is a group-based decision making process. If the problem is not identified properly then we may face a problem as each and every member of the group might have a different definition of the problem. Hence, it is very important that the definition of the problem is the same among all group members. Only then is it possible for the group members to find alternate sources or problem solving in an effective manner. Generate all possible solutions
The next step in the rational decision making process, after defining the exact problem, is to generate all the possible solutions. This activity is best done in groups, as different people may contribute different ideas or alternative solutions to the problem. If you are not able to generate alternative solutions, there is a chance that you might not arrive at an optimal or a rational decision. For exploring the alternatives it is necessary to gather information. Technology may help with gathering this information. Generate objective assessment criteria
After going thoroughly through the process of defining the problem, exploring for all the possible alternatives for that problem and gathering information the third step says evaluate the information and the possible options to anticipate the consequences of each and every possible alternative that is thought of. At this point of time we have to also think over for...
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