Decision Making Is The Process Of Identifying And Choosing A

Decision Making Is The Process Of Identifying And Choosing Alternative

Decision making is the process of identifying and choosing alternative courses of action. While we want to make rational decisions, sometimes we don't. Sometimes, we make non-rational decisions. There are four steps in rational decision making: Recognize and define the problem or opportunity. In business, the problem can come in the form of customer complaints, supplier breakdowns, staff turnover, sales decline, and so on.

Organizations proactively seek opportunities to exceed goals, surpass the industry expectations, and to expand and grow the business. Identify and analyze alternative courses of action. Leaders should seek input from multiple sources to interpret and analyze the problem/opportunity to come up with as many options as possible to solve the issue. Choose a preferred course of action. The group want to answer the following: Is the action ethical? Is it feasible? (Costs, technology availability.) Is it effective? If your answer to this question is the resolution is "good enough," you want to rethink this solution—it will cause more harm than good. Implement the preferred course of action. You need to the participation from all teams to successfully implement the action. On the other hand, non-rational decisions are generally the result of either satisficing (going with the first available option without much research) or intuition (using your "gut" or just your own feelings to make decisions).

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Introduction

Decision making is a fundamental aspect of both individual and organizational functioning. It involves selecting the best course of action from multiple alternatives and is often affected by rational and non-rational processes. Rational decision-making emphasizes systematic analysis, while non-rational decisions rely on intuition or satisficing. Understanding these processes can lead to improved decision-making outcomes in personal and professional contexts.

The Rational Decision-Making Process

The rational decision-making model comprises four key steps: recognizing and defining the problem, identifying and analyzing alternative courses of action, selecting the preferred option, and implementing the decision. Recognizing and defining the problem requires clarity about the issue or opportunity, which can stem from various sources such as customer complaints or sales decline (Simon, 1977). Once identified, decision-makers gather relevant information, generate options, and evaluate them based on criteria like ethics, feasibility, and effectiveness (Bazerman & Moore, 2012).

In the selection phase, decision-makers assess the options against these criteria. An ethical approach considers whether the decision aligns with moral standards and corporate social responsibility, while feasibility involves resource availability and technological capacity. Effectiveness measures the potential of an option to solve the problem or capitalize on the opportunity. After choosing the best alternative, careful implementation is critical, requiring collaboration across teams for success (Eisenhardt, 1989).

Non-Rational Decision-Making

Contrasting the systematic approach, non-rational decision-making often relies on intuitive judgments or satisficing. Satisficing, a term coined by Herbert Simon, refers to settling for a solution that is adequate rather than optimal, often due to time constraints or information overload (Simon, 1957). Intuitive decision-making involves trusting gut feelings or subconscious cues, which can sometimes lead to biases or errors (Dane & Pratt, 2007).

While these methods may offer quick solutions, they lack the thorough analysis characteristic of rational decisions. However, in fast-paced or complex environments, non-rational approaches can sometimes be more practical or necessary (Kahneman, 2011).

Personal Reflection on a Non-Rational Decision

I recall a situation at work where I hurriedly chose to approve a supplier’s proposal without extensive analysis. This decision was primarily based on intuition, as I trusted a recommendation from a senior colleague and was under pressure to resolve a supply shortage quickly. Looking back, this decision was driven by satisficing—accepting the first acceptable option rather than exploring multiple alternatives.

If I had applied the four rational decision-making steps, my approach would have changed significantly. First, I would have explicitly recognized the problem as a supply chain disruption. Next, I would have gathered more information about various suppliers, including their reliability, costs, and past performance. Generating multiple options, I could have evaluated each against criteria such as ethical sourcing, financial feasibility, and potential effectiveness. Selecting the most suitable supplier through this systematic analysis would likely have minimized risks and improved outcomes. Implementing such a decision with proper stakeholder involvement would have enhanced its success and mitigated possible negative impacts.

Benefits of Rational Decision-Making

Applying the rational decision-making process enhances decision quality by fostering transparency, consistency, and thoroughness. It reduces biases that often accompany intuition or satisficing and encourages critical thinking (Osborn & Hunt, 2015). Moreover, systematically evaluating alternatives based on ethical and practical criteria ensures that decisions align with organizational values and strategic goals (Bazerman & Moore, 2012). The structured approach also facilitates better communication, coordination, and accountability during implementation (Eisenhardt, 1989).

While the rational model may require more time and resources, the long-term benefits—such as higher success rates, reduced risk, and improved stakeholder trust—justify its application (Simon, 1977). In many instances, integrating intuition with rational analysis can offer a balanced approach, especially in complex or uncertain situations (Kahneman, 2011).

Conclusion

Decision-making is an essential skill influencing organizational success and personal growth. The rational decision-making process provides a systematic framework for making sound judgments by recognizing problems, evaluating alternatives, and implementing effective solutions. Conversely, non-rational methods like satisficing and intuition can be useful in time-sensitive or ambiguous situations but may carry risks. Reflecting on personal experiences highlights the importance of applying structured decision-making steps to improve outcomes, reduce biases, and align choices with ethical and strategic standards. Embracing a balanced approach that values both rational analysis and intuitive insight can optimize decision quality in various contexts.

References

• Bazerman, M. H., & Moore, D. A. (2012). Judgment in Managerial Decision Making (8th ed.). Pearson.
• Dane, E., & Pratt, M. G. (2007). Exploring intuition in the context of managerial decision making. Journal of Managerial Psychology, 22(8), 773-808.
• Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532-550.
• Kahneman, D. (2011). Thinking, Fast and Slow. Farrar, Straus & Giroux.
• Osborn, R. N., & Hunt, J. G. (2015). Ethical Decision-Making: A Multilevel Model. Journal of Business Ethics, 131(4), 673-688.
• Simon, H. A. (1957). Administrative Behavior: A Study of Decision-Making Processes in Administrative Organizations. Macmillan.
• Simon, H. A. (1977). The New Science of Management Decision. Prentice-Hall.