The rational model is the first attempt to know the decision making process. It is a cognitive model in which managers use their thoughts for analyzing available alternatives and selecting the best one. It is considered by some as the classical approach to understand the decision-making process. Features of Classical Model includes Problems are clear, Objectives are clear, People agree on criteria and weights, All consequences can be anticipated, they are not biased in recognizing problems and lastly they are capable of processing ail relevant information. It helps ensure we consider the full range of factors relating to a decision, in a logical and comprehensive manner.
Each field has a few mental models that form the backbone of the topic. For example, some of the pillar mental models from economics include ideas like Incentives, Scarcity, and Economies of Scale. If you can master the fundamentals of each discipline, then you can develop a remarkably accurate and useful picture of life. To quote Charlie Munger again, “80 or 90 important models will carry about 90 percent of the freight in making you a worldly-wise person. And, of those, only a mere handful really carry very heavy freight.” I 've made it a personal mission to uncover the big models that carry the heavy freight in life.
Individual Decision Making In the approach of individual decision, managers or employer use different model process and result in different conclusions, not based on a rational choice but of their personality, management style and experience. (Keen and Morton, 1978). Bureaucratic model is a model
Furthermore, decision-making styles are divided into; Rational Decision Making Style is characterized by the thorough search for a logical evaluation of the alternatives. Intuitive Decision Making Style is characterized by the reliance on hunches and feelings. Dependent Decision Making Style is characterized by the search for advice and direction by others. Avoidant Decision Making Style is characterized by attempts to avoid decision making. Spontaneous Decision Making Style involves taking the decision at the spur of the moment.
Hence, a decision is needed to put things back on track. In this scenario, a manager may be able to think of an easy solution, but he has to analyze the cause of the problems and what are the possible means of overcoming such. This is because an effective strategic decision is very easy to understand but difficult to achieve. Vasilescu (2011) asserts that one problem with decision making is the thinking that people can make decisions immediately. Most likely, people make decisions through identifying and comparing circumstances in order to determine which one produces the most favorable resolution.
Decision making looks like a simple process but the decision made should be a rational decision. The process of rational decision-making favours logic and objective analyses over subjective insights. Making a rational decision by a company is a very important role in an organization. This is a systematic process of defining problems, evaluating decision alternatives and selecting the best alternative decision available in making a rational decision steps and processes. There are six steps and processes need to be followed by the organization when making the rational decisions.
The particular destination choice also lies in this level. Although it is a very basic model of decision making it underlines the complexity of the decision making and illustrates that even for simple choices, different stages are relevant and options need to be evaluated. Further decision theories build up on this theory (Decrop,