Decision making identifying and choosing solutions that led to a desired end

Decision making identifying and choosing solutions

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Decision-making: identifying and choosing solutions that led to a desired end result -1 st : determine responses/actions necessary to alleviate a problem -2 nd : chose best alternative Decision-making approaches: -Rational model -Non-rational model Rational 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
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-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 decision making 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 not rational -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
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