The Rational Decision Making Model is a “Systematic, step by step method in which 'hard' (quantitative) data obtained through observation or mathematical (statistical) analysis or modeling is used for making long-term decisions.” (businessdictionary.com) In-lay-mans terms this means that this model uses steps to make decisions. “It is sometimes referred to as the rational economic model.” (http://ezinearticles.com/?benefits-of-a-rational-decsion-making-model&id=4806669.com)
Mangers are often the ones who are responsible for making decisions on a daily basis. When faced with a difficult decision, they can use the Rational Decision Making model which has six steps they can take in order to arrive at their decision. These steps include: Identify and define the problem, Identify decision criteria, Weight the criteria, Generate alternatives, Evaluate each alternative, and Select the choice that scores highest. (www.rapid-business-intelligence-success.com) Steps of the Rational Decision making process
Defining the problem is the first step. It is a good idea to actually write the problem down to ensure the problem is stated correctly. When defining the problem it’s helpful to ask the following questions: What is the problems, is it worth solving, does it need an immediate solution, or can it wait? Etc. (http://www.studygs.net/problem/problemsolvingV1.htm)
The second step is identifying the criteria. This step is where you would specify the goals or objectives you want to accomplish. The second step is to identify selection criteria. This step is critical because this is the process of selecting what needs to be done. Cost, effort, or complexity is typically used as criteria. (http://grandviewcentral.com/wordpress/2009/07/15/portfolio-management-step-2-identify-selection-criteria/) The selected criteria will also be used later to evaluate the chosen solution.
The third step is to weigh the...