ECE _ DSST Organizational Behavior

The awareness that a problem exists and a decision

Info icon This preview shows pages 11–13. Sign up to view the full content.

View Full Document Right Arrow Icon
division of the same company, who also had a 2 percent sales decrease, may consider that quite satisfactory. The awareness that a problem exists and a decision needs to be made is a perceptual issue. The Optimizing model is a decision-making model that describes how individuals should behave in order to maximize some outcome. This model outlines six steps that an individual should follow, either implicitly or explicitly, when making a decision. The steps are as follows: recognize the need for a decision; identify the decision criteria, allocate weights to the criteria, develop the alternatives; evaluate the alternatives; and select the best alternative. The assumptions of the optimizing model are the same as those that underlie the concept of rationality, which refers to choices that are consistent and value maximizing. Rational decision making implies that the decision maker can be fully objective and logical. The individual is assumed to have a clear goal, and all of the six steps in the optimizing model are assumed to lead toward the selection of the alternative that will maximize that goal. The Satisficing model is a decision-making model where a decision maker chooses the first solution that is “good enough,” or satisfactory and sufficient. The essence of the satisficing model is that, when faced with complex problems, decision makers respond by reducing the problems to a level at which they can be easily understood. This is because the information processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize. The Implicit favorite model is a decision making model where the decision maker implicitly selects a preferred alternative early in the decision process and biases the evaluation of all other choices. This model is also designed to deal with complex and non-routine decisions. This model argues that individuals solve complex problems by simplifying the process. The decision maker is neither rational nor objective. Early in the decision process, he or she implicitly selects a preferred alternative. Then the rest of the decision process is essentially a decision confirmation exercise, where the decision maker makes sure his or her implicit favorite is the “right” choice.
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Intuitive decision making is an unconscious process created out of distilled experience. Experts no longer automatically assume that using intuition to make decisions is irrational or ineffective. There is growing recognition that rational analysis has been overemphasized and that, in certain instances, relying on intuition can improve decision making. Intuitive decision making is most likely to be used: when a high level of uncertainty exists; when there is little precedent to draw on; when variables are less scientifically predictable; when facts are limited; and when facts don’t clearly point the way to go.
Image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern