Rational Decision Making Model
Abstract
What is a decision? The word decision can be defined as, “the act of reaching a conclusion or making up one's mind” (American Heritage, 2000). Essentially, a decision is a choice that an individual or a group of people makes. A decision can be a single action, an entire process, or even just a single spoken word or gesture. Decision-making is one of the defining characteristics of leadership. Making decisions is what managers and leaders are paid to do, and is an integral part of their day’s duties. The affects of decisions can range from minor in consequence to life or career threatening. Regardless of the consequences, it is important to understand when a decision needs to be made and the
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3). Essentially, the Rational Model requires people to have a clear understanding of the actual problem. Unless the issue is clearly established, the Rational Model can be ineffective. This model also incorporates extensive research, so that all options or alternatives can be brought before the decision-maker(s).
The Rational Model is a step-by-step decision-making model. Depending on the source of definition for the Rational Model, it consists of anywhere from four to nine steps that must be taken to reach a comprehensive, educated and effective solution. Basically, the Rational Model can be broken down into four basic steps, which can be further diluted to create the additional three to five steps.
Step 1 – Define the Problem
The first step of the Rational Model is to define the problem. As stated in the definition, in order for the Rational Model to be effective, the problem or issue needs to be clearly understood. It is imperative to truly understand to source of a problem, not just the symptoms. The MBA program at the University of Houston Victoria provides this example, “if a member of your staff is impolite to a client on the phone, the problem may not be that your staff member is impolite--it may be that he needs customer service training, or that he is having difficulty coping with the stress that his professional responsibilities involve” (2005). Essentially, the virus needs to be treated, not the cough it causes.
Step 2 – Generate
The concepts of the rational choice theory. Within the rational choice theory you have subcategories. General deterrence, specific deterrence, and Incapacitation. General deterrence is the idea that crime can be controlled by increasing the real or perceived threat of punishment. According to the general deterrence theory not only is the likely hood of punishment a deterrent but also the sentence will be harsh. This should in theory lessen criminal activity. So basically the certainty of punishment combined with the swiftness and severity of punishment will be the contributing factors of reducing crime rates.
Managers within organizations are faced with the challenges daily of making excellent decisions. In everyday life we are challenged in making sound decision, decision that will last for a life time. Folk often wonder after making a decision if it was the right choice, will it affect the people around me, was this a good choice for my family, and will the decision affect them. In order to be an effective manager you have to possess the skill of outstanding decision making skills. In order for one to be successful within their personal life they may also need to possess an understanding of effective decision making. The decision- making process should be one that makes a positive change. Can the decision making process work
When it comes down to it, we all make our own decisions. We weigh the pros and cons to decide if the benefits outweigh the potential punishments. The idea of rational choice theory is that people choose their actions based on the options available and choose the one they most prefer. If their choice is to eat a donut or to not, when they really want to eat it, chances are they will eat it. Once you add in punishment, it gets more complicated. If the person were to be punished for eating it, they will most likely think it through more. Say, it’s a teenager who wants to eat the donut but he knows his father will ground him if he does. This donut is the teen’s favorite kind and he really really wants to eat the donut, but the risk of punishment is there, the teen will weigh the consequences against the benefits. Would he choose a few minutes of a tasty donut and risk being grounded for a week or would he choose to forgo the donut and not get in trouble? The act of having a choice to do something you want to do that also has consequences and causes you to rationally decide if it’s worth it or not is rational choice theory.
Decisions! Decisions! Decisions! How do you make decisions? Have you ever asked yourself, “How did I make that decision?” Whether big or small, important or not so important, decision making is a process. Some people way the pros and cons while others may just flip a coin. Are decisions based on feelings, outcomes or information? Often times if we just go with our gut feeling will be miss out on important information that should be included in our decision.
First, under this step managers must recognize that a decision is needed and identify the problem to be solved. A problem is typically a difference between the actual situation and what is desired. However, managers often act without understanding the problem to be solved or define the problem in terms of a proposed solution or in terms of its symptoms. For example, in response to employee complaints about salaries being too low (a symptom), managers might define the problem as a comparison of salaries to industry averages (SagePub, 2008). However, the true problem could be that the total compensation package, including benefits, does not suit the demographic characteristics of the firm’s employees.
The decision making process includes cognitive processes that eventually lead to a choice in action while taking into consideration the alternative possibilities (Allen, Dorozenko, & Roberts, 2016). Not all choices have to lead to an action. The values and preferences of the person making the choice also comes into play when making the final decision. Problem-solving to obtain a certain goal or satisfactory by a solution is the main reason people go through the decision making process (Stefaniak, & Tracey, 2014). This process has many factors that end with one final result or solution. The decisions made can be rational or irrational and can be determined by explicit or tacit knowledge (Qingyao, Dongyu, & Weihua, 2016). Since the decision making process can be very difficult at time, psychologists have viewed the process in different perspectives to get a better understanding (Rossi, Picchi, Di Stefano, Marongiu, & Scarsini, 2015). The different perspectives include; psychological, cognitive, and normative or communicative rationality.
Decisions are shared between all employees utilizing the rational decision-making model. Greenleaf, R. K. (1998) noted, servant-leadership advocates a group-oriented approach to analysis and decision making as a means of strengthening institutions and of improving society” (p. 9). As noted by Hellriegel, Jackson and Slocum (2008) “The rational model consists of seven steps, defining and diagnosing the problem, setting goals, searching for alternative solutions, comparing and evaluating alternative solutions, choosing among alternatives, implementing the solution and follow up. The model prescribes a set of phases that individuals or teams should follow to increase the likelihood that their decisions will be logical and optimal” (p. 266). The management team takes the responsibility for defining the problem. The management team and employees participate in setting goals, searching for solutions, comparing alternatives, and choosing alternative solutions. The makeup of the implementation team depends on the tasks and expertise required to successfully implement the solution.
First step in decision making process is identifying the problems. As McShane and Von Glinow (2000) stated, a problem can be
However, this idea can be a divergence from reality, as in real life it is difficult or even impossible to find such agents that will make perfectly rational decision as reflected by irrational human behaviour. Though the assumption of individuals act rationally is important when analysing economics and interactions. This is because if we don’t assume everyone act rationally, if there’s a loss of welfare, we will not be able to decide whether it is the result of flaw in the structure or just because of irrationality.
My example of the rational choice theory of today is the mexican drug controls of December 2011. The drug trafficking organization in Mexico was highly rational, self-interested actors seeked to maximize profit.
So what is the definition of a rational theory? “The rational choice theory adopts a utilitarian belief that man is a reasoning actor who weighs means and ends, costs and benefits, and makes a rational choice. This method was designed by Cornish and Clarke to assist in thinking about situational crime prevention”. In the book it basically explains it in a much easier way. The book defines it as the, “explanations of crime and delinquency held that human behavior was a matter of choice”.
It combines many factors or steps in policy process, which usually needs much time to develop public policy. Probably, the most influenced idea about the process is coming from theoretical point of view of policy process. This method is known as rational models. The rational models compromise with the ideal process of policy.
The rational model is a cognitive process which weighs the outcomes and alternatives though a step by step process allowing emotion to be set aside (Rational Decision Making Process, 2015). This process is comprised of five steps which help individuals or groups come to a final qualified decision. The first step is the pre-analysis phase; this includes identifying and defining the situation as well as the desired end results. There are many options available to an individual or group decision maker when it comes to this step. . Utilizing a focus group or brainstorming can give the final decision maker the most reasonable and well thought out options available. Regarding the decision at hand there are many variables that
Rational choice theory, also known simply as choice theory, is the assessment of a potential offender to commit a crime. Choice theory is the belief that committing a crime is a rational decision, based on cost benefit analysis. The would-be offender will weigh the costs of committing a particular crime: fines, jail time, and imprisonment versus the benefits: money, status, heightened adrenaline. Depending on which factors out-weigh the other, a criminal will decide to commit or forgo committing a crime. This decision making process makes committing a crime a rational choice. This theory can be used to explain why an offender will decide to commit burglary, robbery, aggravated assault, or murder.
Decision making can be described as a process of making a decision or decisions, based on choices made amongst two or more competing course of actions. The ‘Decision making’ also requires making a define choice between two or more alternatives course of actions that are available.