Rational Decision Making Model

Do you have difficulty in making the decision rationally?. Many individuals, when asked their definite answer,is yes, in action we take we always embedded with a load of thought on the decision we should make.(Vohs, 2018) Everyone wants to always make the best decision among his/her choices to avoid consequences that arise after making a poor decision.(Kaufmann, 2017) Management decision making is a course of action taken by the manager from a set of an alternative to archive organization objective. Such sound decision is very important to the organization either it will lead to the success of the organization or failure of the organization.in management, there is a clear distinction in two types of decision making this is, rational decision making and irrational decision making.(Betsch, 2014) Which focuses on what actually could happen and what could be optimal if all variables were met. Arguments have been rising on the difference of both methods, but in management rational decision making is a process that enables one to break a decision among alternative into segments or stages and searching to the most logical, and optimal choice. This is vice versa when it comes to non-rational decision-making model views that making the decision is risky and that optimal decision making is difficult to make.(Dror, 2017)Nonrational decision making descriptive and realistic in nature, which is based on incomplete information concerning environmental factor and their limited knowledge of alternative that help in arriving at the best decision making.  Hence it comes in the form of satisficing, breaking down decision into increment and intuition. Due to the characteristic of non-rational decision making being realistic most of the managers in an organization make decisions concerning the managerial or the organization using non-rational decision making. By looking at the current explanation on both rational and noa n-rational decision making it’s clear that both aspects have different ways a when it comes to decision making.(Rothman, 2017)

The two two decision-making model is difficult to choose which one to implement especially when it comes to critical decision making and as a manager,you’re expected to make a decision that leads to prosperity of the organization and managerial sector. Rational decision-making model always assumes that an individual makes choices that will lead to minimizing cost and on the other hand maximize cost, which is easy to see in economic theory. For example, most of the consumers in the market look for products that yield great reward at the lowest price.(Rothman, 2017) The model assumes that the individual has all the information concerning the base choice. Rational decision-making model assumes that a person has all time, ability and resources to list and analyze all alternative he/she has against others.(Groeneveld, 2017) But in most cases is not the case, if faced with the immediate problem that needs first decision making you don’t have all that time to evaluate all the alternative given in order to make a decision. In some cases, their may be a lack of resource to break down the alternative in order to make a decision. on the other hand, non-rational decision-making model views the gathering of information and lithe imitation involved in breaking decision into, stages as being difficult for the manager to make optimal decision making. Satisficing model that was developed in 1950 by novel prize-winning economist Herbert holds that manager alternative if and only if they find out that the alternative it’s satisfactory rather than looking for optimal decision making.(Manski, 2017) If the alternative is not satisfactory, it cannot be used in making a decision. The decision is both risky and useful depending on the choice an individual chooses. Non-rational decision making is realistic because it relies on the expertise experience he/she has in the field. If one has a satisfactory experience in the field, he/she as manager has a chance of making a decision according to intuitionism.(Snyder, 2015)

Limitations of Rational Decision Making Model

Managers especially in making fast decision making affecting the organization mostly avoid procedures and long process. Rational decision making breaks decision into stages, and then they go for the one which is the most logical and optimal choice.(Vohs, 2018) It involves various stages; stage one involves problem acknowledgment and assessment, this enables the manager to allocate the cause of the problem and its origin, identifying the direction criteria. This is where the manager list alternatives to solve the acknowledged problem or opportunities. the alternative at this stage should be relevant,third stage is allocating weight to the criteria, this is after the manager has selected alternatives  from the listed one and poses a great weight to the alternative by giving, then the manager develop the alternatives, this involves assessing the alternatives and implementing them to see their impact, evaluating the alternatives follows, during this stage the manager questions the ethical nature of alternatives and ignores any that are unethical.(Yoe, 2016) Then the manager determines if the alternative that has passed the evaluation stage are realizable given the resources and the time they have been allocated. Through all this process the manager tries to implement the solution if there is any that cannot be implemented its scraped out, and the manager chooses the best solution that can bring about the logical and optimal result. With all of this, processes rational decision making is unrealistic.(Godwin, 2015)(Yoe, 2016) This due to most of the managers in organization runs in a tight schedule, and the processes of making decision is long and time-consuming, this leads to manager rushing the processes in order to arrive at a result that is optimal, this shows that the manager may not take adequate time in all the process involved hence leading to ineffectiveness of the decision arrived at.(Snyder, 2015) Another factor that makes the managers from not performing the tiresome log processes is due to emotional thinking, which is something that all human do. This process calls for unemotional thinking for it to be effective and provide the required logic and optimal result.

From our present(Ma?kowiak, 2015) definition, rational decision making is unrealistic hence this calls for manager to use non-rational decision making the organization,(Rothman, 2017)non-rational decision making understands that making decision is risky because optimal decision is required in the organization hence taking the form of satisficing that is making a decision that satisfies the minimum requirements necessary to achieve a particular goal, or breaking decision into increment, and intuition.(Manski, 2017) This depends on the experience the manager has on the field. If it’s satisfactory, the manager is capable of making a decision using his/her intuition. Although managers can make a decision using intuitionism is both beneficial during crunch time, but it is hindered by the bias which makes it very risky.(Tang, 2015)Satisficing is helpful during the 11^th hour, and it also alleviates pressure to the manager. Satisficing is made due to time and limited resources Increment and breaking down decision into steps makes the situation to be easier for individual to make decision.(Dror, 2017) The advantage non-rational decision making has over rational decision making is that it helps the manager to make fast decision making even in crunch time and saves resources that could be used in breaking situation into steps, following all the process to come up with an optimal solution. Non-rational decision making also its dangerous if the decision arrived at does not fit to the problem or opportunity.

Non-Rational Decision Making Model

Rational and non-rational decision making both have their limitation when it comes to decision making. In rational decision making an individual might not have all  the required information hence leading to usage of more resources to acquire the information which is not available, if the decision is complex it limits an individual in making a completely rational decision making, this depict that human have limited ability to conduct analysis and be able to think through competing alternatives.(Kaufmann, 2017) Lastly when it comes in choosing a product that has the highest reward with minimal cost the consumer might end up choosing a product that does not satisfy his/her needs due to choosing the product that is relatively cheap.(Godwin, 2015) On the other hand, non-rational thinking is usually applicable when the manager does not want to waste time or when there is a need of making a fast and critical decision; this may lead to the making of poor decision due to rash and lack of analyzing the choices available for the decision.(Dror, 2017) Making a decision by use of intuition is another risk if the manager is not experienced enough in the field and uses intuition to make a decision it may lead to wrong decision making.

Conclusion

From the context, it is clear that making a decision is difficult in either choosing to use rational decision making and irrational decision making.(Betsch, 2014) For both cases, they have their benefits and limitation which leaves especially managers into dilemma into which method they should take to make a sound decision that is reliable to the identified problem or opportunity.(Rothman, 2017) Although non-rational decision making has some of its limitation, its recommendable because it saves time and resources. It’s also effective in making a fast decision affecting an organization.

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