(PDF) Rational Model of Decision Making
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Added on 2021-04-17
(PDF) Rational Model of Decision Making
Added on 2021-04-17
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1Running Head: Decision-Making ModelDecision-Making ModelNameCourseInstructorDate
2Running Head: Decision-Making ModelTable of ContentsIntroduction...............................................................................................................................................3The Smart Drone Delivery........................................................................................................................4Below is a table explaining the findings from this business case........................................................7Decision Model Proposal...........................................................................................................................7Conclusion................................................................................................................................................13Decision Model Application....................................................................................................................14Regression Analysis.............................................................................................................................14Figure 3.1..........................................................................................................................................15Decision Trees......................................................................................................................................16Figure 3.2..........................................................................................................................................17Forecasting...........................................................................................................................................17Conclusion................................................................................................................................................18
3Running Head: Decision-Making ModelIntroduction Decision making models refers to techniques and processes that are carried out while making achoice in an organization among different courses of action. The criticality of decision makingcannot be emphasized enough as the effectiveness of results, solely depend on the course ofaction chosen in a decision- making exercise. In an organization, wide alternatives of decisionsare made all the time. These decisions vary in importance and promptness. Some decisions mayaffect the lives of many people and others may change the course taken by an organization. Forexample, decisions made in a hospital are a matter of life and death. It is therefore imperativethat the decision makers carefully analyze and evaluate alternative courses of action before adecision is made to achieve a certain goal. According to[ CITATION Cha17 \l 1033 ], while the process of making decisions may be a logicalone, it is often a difficult task and, in most cases, involve ethical issues. Therefore, beforedeciding, it is important to consider whether the decision is fair, does it corrupt the moral laws,does it break laws of an organization and most importantly, does it break the overall laws of acountry. Despite the technicality and importance of decisions, it is worth noting that not on allcases, a decision requires too much thought nor does all decisions result to major consequences.For example, waking up in the morning and heading to work does not require much thought assuch routine decisions normally have an automated response. Such decisions are known asprogrammed decisions[ CITATION Ire02 \l 1033 ]. However, there those decisions that call forproper analysis, intensive information gathering and careful selection of alternatives. These areknown as nonprogrammed decisions. For example, introduction of a new product by a companyto the market or a drop in the company’s stocks in the market.
4Running Head: Decision-Making ModelUnder nonprogrammed decisions, there are three different decision-making models that cannotbe ignored. Firstly, is the rational decision-making model[CITATION IRE98 \l 1033 ]. In this model,the first step is to ensure a decision criterion is formulated before sorting the alternatives. Thisstep prevents forming a liking for an alternative and then formulating the criteria that favors thatalternative. The general format of the rational model is generating all possible alternatives thatcovers a wide range of courses of action and hence arrive at a highly effective decision that donot sacrifice one possible alternative for another[ CITATION Cha17 \l 1033 ].Secondly, is the bounded rationality/ administrative man model. This model has been based onthe concept that does not consider individual rationality but rather takes an assumption thatpeople normally settle for less while finding the best solution. This is because of the constraintsof time, enough information and processing capabilities. This model focusses on the alternativethat will provide a solution that satisfies the goal in the best way. Thirdly, is the retrospective decision- making model. In this model, the decision is madeintuitively and later the decision-makers try to justify their choice. This model was developedafter an observation was made on graduating students when make their choice of a job. It wasnoted that the students made their choice early in the recruiting process but kept an open mindfor possible alternatives in the future. Through this process, an individual is convinced that thedecision made was rational and logical[ CITATION Cha17 \l 1033 ].The Smart Drone Delivery The case study chosen for this purpose, is that of the smart drone delivery; the decision-makingmodels used, the value added to the business as a result of using that model and the advantagesas well as disadvantages of applying that kind of decision-making model to the business. A drone
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