Once useful information is gathered, decisions need to be made. These decisions will guide the business, so it is important that the decision-making process be as accurate as possible. Rational decision-making is a traditional method of decision-making. Truly effective managers are familiar with this method, and they are always seeking to improve their decision-making skills.
What is Rational Decision-Making?
Decision making is not the same as problem-solving because decisions do not always come from problems. Rational decision-making is a cognitive process that relies on an analysis of information to make decisions. It takes several steps, and compares different solutions to discover the best possible scenario. Rational decision-making has its limitations.
Steps to Rational Decision-Making:
There are six basic steps to rational decision-making in the business setting. These steps depend on the information collected, which is why it is so important to make sure that the information is truly useful.
Steps to Rational Decision-Making:
- Define the decision: Before making a decision, determine what it is and why it is necessary.
- Determine the criteria: The criteria for the decision are based on the values, interests, and goals of the organization.
- Evaluate the criteria: Evaluate the criteria to determine that it is appropriate and will help keep priorities in place.
- Explore options: At this point, brainstorm different answers.
- Rate options: Evaluate and rate the answers for priority and effectiveness.
- Calculate the best decision: Select the decision with the best rating.
Limits to Rational Decision-Making:
Rational decision-making is useful, but there are limits to its effectiveness:
- The process assumes that it is possible to have all the information and consider the effectiveness of every option.
- Rational decision-making is limited by the abilities of the person making the decision.
- The steps depend on the criteria and information remaining unchanged.
- Creativity is limited with rational decision-making.
- Rational decision-making takes time that is not afforded with every scenario.
Improving Decision-Making
Rational decision-making is limited. In order for it to be effective, it should include creativity and intuition. There are guidelines for both creative and intuitive decisions.
Creative Decisions:
- Experience: Expertise in the field is imperative for all creative decisions.
- Creative ability: Creative skill includes confidence, self-control, ability to think abstractly, and perseverance.
- Motivation: Creative decisions demand that managers want to work on the project and make the decision.
Intuitive Decisions:
Intuitive decisions allow decision makers to make decisions quickly. The decisions are made based upon experience and observation. People see patterns from their experiences in previous situations and use these patterns to guide them in the decision-making process.
This is Excellent & Complete view of Decision making.
However what is your perspective for the Challenge – that you are making Decision for is important !
What is the perspective ? Are you Present to this ?