Rational Decision Making Process

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CONTENT

Abstract 1.0 Introduction
1.1 Steps to Problem Solving Process
2.0 Defining Problems
2.1 Problem Statement
3.0 Identifying Decision Criteria
4.0 Allocating Weights to Each Criteria
5.0 Developing/Generating Alternatives 6.0 Evaluating Alternatives
6.1 Potential Solution Evaluation Checklist: 6.2 When should you evaluate potential solutions?
6.3 Criterion – weight matrix
7.0 Selecting the Optimal Decision/Alternatives 7.1 Selection of alternatives 7.2 Pros and Cons
8.0 Implementing the Alternatives
9.0 Evaluation the Decision Effectiveness

ABSTRACT
This report will discuss about the approach to rational decision making process. It discusses how an everyday problem faced by management can be tackled by using facts, opinions and reasonable reasons.

1.0 introduction
Decision making describes the process by which a course of action is selected to deal with a specific problem. The success of an organization depends greatly on the decisions of managers. There are two major types of models used by managers to make decisions rational model and non-rational models. In the rational model, managers engage in rational decision making processes. Any rational decision making process consists of eight basic steps. Those steps are: defining problems, identifying decision criteria, allocating weights to each criterion, developing or generating alternatives, evaluating alternatives, selecting the optimal decision or alternatives, implementing the alternatives and finally evaluating the decision effectiveness. These decision making steps which is mentioned in the text book are really practical.

According to Ohio State University management professor, Paul C. Nutt, we only get about 50% of our decisions in the workplace right! Half the time they are wrong, so there is clearly plenty of scope to improve on our decision making processes. Based on his research into over 300 decisions, made in a range of organizations, he discovered that
“some tactics



References: http://www.the-happy-manager.com/rational-decision-making-model.html http://www.scribd.com/doc/906096/The-SixStep-Rational-DecisionMaking-Model G. Dennis Beecroft, Grace L. Duffy, and John W. Moran, The Executive Guide to Improvement and Change, ASQ Quality Press, 2003, pages 17-19. http://www.unce.unr.edu/publications/files/cd/other/fs9726.pdf http://www.brainbench.com/pdf/CS_SaskTel.pdf http://www.cliffsnotes.com/study_guide/The-DecisionMaking-Process.topicArticleId-8944,articleId-8863.html

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