The Six-Step Rational Decision-Making Model
1. Define the problem.
2. Identify decision criteria
3. Weight the criteria
4. Generate alternatives
5. Rate each alternative on each criterion
6. Compute the optimal decision
Identify decision criteria
Once a decision maker has defined the problem, he or she needs to identify the decision criteria that will be important in solving the problem. In this step, the decision maker is determining what’s relevant in making the decision.
Part 2 – Improving Creativity in Decision Making
Creative Potential – Get out of the psychological ruts most us get into and learn how to think about a problem in divergent ways.
Part 3 – How Decisions Are Actually Made in Organization
People are usually content to find an acceptable or reasonable solution to their problem rather than optimal one. Consequently, decision makers generally make limited use of their creativity. Choices tend to be confined to the neighborhood of the problem symptom and to the neighborhood of the current alternative.
“Most significant decisions are made by judgment, rather than by a defined prescriptive model.”
In order to avoid information overload, decision makers rely on heuristics, or judgmental shortcuts, in decision making.
Level of Moral Development
Moral development is relevant in decision making because many decision have an ethical dimension. An understanding of this concept can help you see how different people impose different ethical standards on their decisions.
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