Logical Selection of Reasoning and Facts in Rational Decision Making

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RATIONAL DECISION MAKING Rational decision making is a decision making model that involves the logical selection among possible choices that is based on reasoning and facts. In a rational decision making process a business manager will often employ a series of analytical steps to review relevant facts observation and possible outcomes before choosing a particular course of action. Rational decision making can also be termed classical decision making. Rational decision making is part of the normative or prescriptive decision theories where there is a preset way of making decisions, i.e. norms, standards, and policies already in place are used as a criterion or base line for making decisions. Decision making models and approaches have…show more content…
RATIONAL DECISION MAKING Rational decision making is a decision making model that involves the logical selection among possible choices that is based on reasoning and facts. In a rational decision making process a business manager will often employ a series of analytical steps to review relevant facts observation and possible outcomes before choosing a particular course of action. Rational decision making can also be termed classical decision making. Rational decision making is part of the normative or prescriptive decision theories where there is a preset way of making decisions, i.e. norms, standards, and policies already in place are used as a criterion or base line for making decisions. Decision making models and approaches have revolved over time, researchers have identified the following key models and approaches: - Rational Decision Making Model (classical Decision Making Theory) - Rational Decision Making is elaborated upon in the following section. - Bounded Rationality Decision Making Models Bounded Rationality Decision Making Models is a model that was developed by Herbert Simon. He brings forth an argument that says decision making can never be perfectly rational processes, but rather one that is has within it a number of constraints and limitations. These include information constraints i.e. it is likely that information gathered may not be sufficient to develop all possible alternatives. The second limitation is people’s ability to fully comprehend the

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