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Decision-making:identifying and choosing solutions that led to a desired end result-1st: determine responses/actions necessary to alleviate a problem-2nd: chose best alternative Decision-making approaches:-Rational model-Non-rational modelRational Model: proposes that managers use a rational four-step approach to decision making, breaks down decision-making process and serves as an anchor for newer models-Based on optimizing: solving problems by producing the best possible solution(1) Identify the problem: (2) Generate alternative solutions -Match solutions to goals-Build on each other’s ideas-Specify which solutions are short term and long term-Problems: -Rushing to judgment-Selecting available ideas -Poorly allocating resources to study alternatives(3) Section a solution:-Evaluate the costs and benefits -Is it ethical? -Forecast the outcomes: will it solve the problem?(4) Implement and evaluate the solution:-Monitor the progress-Provide feedback-Evaluation the outcomes based on predetermined criteria-If solution effective: it should reduce difference between actual and desired states that created the problem -If not effective: either the problem was incorrectly identified or the solution was inappropriate *Research has shown that implementing rational decision-making model improves decision-making and problem solving process *Decision makers do not actually use this model
-In complex situations, this is not the way decisions are made, despite the probable benefits because it takes a large amount of time*Biggest assumption: decision maker’s main goal is to optimize*-This is flawed because they actually have a lot of other motivations for decisionmaking sure as power, politics, etc.Non-Rational Model: attempt to explain how decisions are actually made, based on the assumption that decision-making is uncertain and difficult for managers to make optimal decisions-Two types-Normative model-Garbage can model-Normative model: based on the idea that decision-making is notrational-Guided by decision makers bounded rationality and satisficing-Bounded rationality: constraints that restrict decision-making quality-Time-Limited information processing -Situation complexity -Satisficing: choosing a solution that meets some minimum standard-You will stop seeking alternatives when you find one that is good enough because of time constraints*-Limited information processing and satisficing both limit ability to optimize-Garbage can model: based on the idea that decision-making is sloppy -Opposite of the rational model-Decisions occur from 4 events interacting: problems, solutions, participants, and choice opportunities-Just like the process of mixing garbage in a trash container, the garbage can