What Is The Rational Decision-making Model? Under What Conditions Is It Applicable?

3 Answers

Anonymous Profile
Anonymous answered
The Rational Decision-Making Model is a process for making logically sound decisions.
This rational decision making model usually follows six steps:
1. Define the problem, characterizing the general purpose of your decision.
2. Identify the criteria, specifying the goals or objectives that you want to be able to accomplish.
3. Weight the criteria, deciding the relative importance of the goals.
4. Generate alternatives, identifying possible courses of action that might accomplish your various goals.
5. Rate each alternative on each criterion, assessing the extent to which each action would accomplish each goal.
6. Compute the optimal decision, evaluating each alternative by multiplying the expected effectiveness of each alternative with respect to a criterion times the weight of the criterion, then adding up the expected value of the alternative with respect to all criteria.
This model has the advantages that you are unlikely to miss alternatives or important goals or criteria. It is also clear how the decision was reached and can be reviewed by other independent parties.
The drawbacks of this model the selection criteria might be incomplete and the weightings used may be inaccurate and may be do not fully address the things you really care about. Assumptions of the Rational Decision-Making Model
• Problem Clarity-
o The problem is clear and unambiguous.
• Known Options-
o The decision-maker can identify all relevant criteria and viable alternatives.
• Clear Preferences-
o Rationality assumes that the criteria and alternatives can be ranked and weighted.
• Constant Preferences-
o Specific decision criteria are constant and that the weights assigned to them are stable over time.
• No Time or Cost Constraints-
o Full information is available because there are no time or cost constraints.
• Maximum Payoff-
o The choice alternative will yield the highest perceived value.

The six step decision making process is a rational decision making process. This means that it is based upon thinking about, comparing and evaluating various alternatives. Rational decision making models are typically described as linear, sequential processes.
In other words, there are steps laid out for you to follow. Each step must be completed before you go to the next step. And occasionally it may be necessary to go back several steps to more fully complete them before you go forward again.
There are various 6 step decision making processes described and usually the steps are very similar, only the wording is different.

The steps
define the situation and the desired outcome
research and identify options
compare and contrast each alternative and its consequences
make a decision ? Choose an alternative
design and implement an action plan
evaluate results

The uses
Six step decision making processes have been utilized extensively in organizations. Traditional ethical decision making models can be incredibly complex. They have been simplified to a six step decision making process so that employees can be empowered to make decisions appropriate to their rank and responsibility.
It is also commonly used in schools to teach children how to make decisions.

The pros
Occasionally, clearly defining a situation and stating the required outcome can go a long way towards improving a situation. It is important regardless of the type of decision making process.
Researching all your options increases the amount of information in the system. This often gives rise to options previously not considered or may even generate options in regard to other unrelated decisions.
It is often considered that complex situations often require complex decision making processes. But is it not often the case that in a complex, chaotic situation, it's the simple solution that works?

The cons
A six step decision making process can become a waste of time and energy and effort if there is too much attention to detail in researching options. If it leads to a delay in decision making, there may be wasted opportunities and missed chances.
Sometimes beliefs and assumptions are mistaken for facts with unwanted consequences.
The search for the best option instead of an effective one may mean even more time wasted, decisions not being made, and lost opportunities.
The emphasis is on cognition, or thinking, and there is little consideration of the individual, or their internal body signals .
Despite the fact that these kind or models are taught extensively, recent research shows that people don't actually make decisions this way. Up to 95% decisions
Lily James Profile
Lily James answered

Rational Decision making model is basically the process which is used for making logically sound decisions. This model is applicable in a condition where it is important to follow an orderly and systematic path.

It has the following steps:

- Identify and define the problem
- Generate possible solutions
- Generate assessment criteria
- Choose the best solution from the possible solutions.
- Implement the best solution.
- Monitor and evaluate the results.
- Feedback

Ellie Hoe Profile
Ellie Hoe answered
Rational decision making model is the formal way of solving a problem by following steps by steps. First the problem is realized, then evaluation criteria is established, alternatives are created, feasible alternative is selected and then implemented, and finally the pros and cons of the implemented alternative are analyzed. The rational decision making model is used in almost all kind of daily business situations. However, this model is said to be little bookish as in today's world of dynamic environment, problems are unknown and alternatives are very less. This model assumes that information and alternatives are readily available which is not true in the real scenerio.

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