Chapter 7, Problem 1UTC

Summary Introduction

To determine:

The steps in a rational decision making.

Introduction:

Rational decision making is a multi-step process which involves choosing between different alternatives by analyzing each option and favorable gain from it.

Answer to Problem 1UTC

Solution:

Rational decision making is one of the most used models by business managers, which is a linear multi-step process for making logically sound decisions.

Steps of rational model as follows:

Step 1: Identify the problem

Step 2: Identify the decision criteria

Step3: Weight established criteria

Step 4: Search for available alternatives

Step 5: Evaluate and study all identified alternatives

Step 6: Determining the optimal decision

Explanation of Solution

In step 1: Identifying the problem is important to make any decision as it is the sole objective before starting to look for solution.

In step 2: Identifying the step criteria involves the limit of the solutions. It could be according to the resources available to get different alternative to choose from.

In step 3: Weight established criteria involves the searching and looking for other resources that could be avail and the establishment of the solution criteria.

In step 4: searching for available alternatives is the process of looking for favorable options that suits the problem requirement. The most favorable options are kept aside for further analysis.

In step 5: evaluating and studying all identified options helps understand more about the alternatives leading to eliminate least favorable options.

In step 6: determining the optimal decision is the process of find the right alternative from the options analyzed above.