Decision making is defined as a rational choice among alternatives. A decision is the result of making a judgment or reaching a conclusion. In order to perform their jobs well, managers must make good decision.
The Decision Making Process/ The Rational Model of Decision Making
There are different ways, or models, for thinking about decision making. Attempts to show how people should make a decision are called rational model of decision-making, it assume that decision makers apply a carefully set of criteria or rationale for their decision. In the rational model, decision-making usually begins with a judgment that a problem exists or a change is needed. Once a problem is recognized, alternatives are sought that could eliminate the negative condition or achieve the goal.
1.Recognize and Define the problem
Carefully define the problem and make sure you focused on the right problem. Once a problem is recognized and defined, alternatives are sought that could eliminate the negative condition or achieve the goal.
Alternatives are activities that you believe will lead to a better state of affair.
2.Generate Alternative Solutions
Explore as many alternatives as possible and be open to creative solutions. Survey all possible objectives sought and the values relevant to the choice to be made.
3.Evaluate each solution based on established criteria.
Carefully evaluate alternatives in terms of costs, risks, and benefits. To choose among the alternatives, you have to use criteria to evaluate them. Among the most common criteria used are feasibility, time, cost, and personel acceptability. Criteria will usually vary from person to person, and it is not always clear what criteria are being used.
4.Decide on the Optimum Solution
Re-evaluate positive and negative consequences of all alternatives even those originally rejected. Here the evaluation can uncover faulty implementation or...