Rational
Decision Making Process
The
rational decision making process is a cognitive
process which is made up of a logical step by step process. In this
process the
emphasis is on thinking things through and also on weighing the
outcomes and
alternatives before arriving at a final decision.
In
general there are 5 broad steps in rational decision making process,
through different models follow different methodologies.
-
First we
must identify the situation and
the
decision that is needed to be made.
- Second all
the
important criteria must be discussed
and identified.
- All possible
situations must be carefully considered.
- All possible
situations must be considered along
with their outcomes to see which best fits the bill.
- The best option is
then chosen.
The presumption in the
rational decision making process is that there is
only ONE BEST solution to every problem and it focuses on trying to
find that
solution. Sometimes we just need a solution that works versus the best solution
at that moment. This model is also based on prediction of outcomes
based on different
solutions; however our ability to predict the future is often limited
and hence
skewed.
This process also
requires a great deal of time and
thought along with information, it also negates the emotional aspect of
decision making.
There is also an eight
step decision making process
which has been outlined
below:
Step 1: Identification
of the Problem
Step 2: Identification
of decision criteria
Step 3:
Allocation of weights to criteria
Step 4: Development
of Alternatives
Step 5: Analysis
of Alternatives
Step 6:
Selection of Alternatives
Step 7: Implementation
of the Alternatives
Step 8: Evaluation
of the Decision Effectiveness
The rational decision
making process is highly effective when used in team
decision making and also when making decisions regarding important
business outcomes.
When dealing with any situation where the decision will affect the
companies’
future or financials
or employee and customer satisfaction, it is best to
follow the rational decision making process.
In order to facilitate
the rational decision making model there are many forms and
templates available both on and offline to help your team make a
decision
effectively such as Decision matrix, Pugh matrix, decision grid,
Selection
matrix, and criterion rating form along with many others, nominal group technique,
fishbone diagram
etc.
When selection a model
and a form it is best to
select on that appeals to your style and level of comfort with this
leadership
tool.
Related
Articles:
Decision
Making Skills
Nominal
Group Technique
Fishbone
Diagram
Decision
Making Steps
Decision
Making Tips
Problem
Solving Techniques
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