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Research shows that the distinction between objectives (background rationality) and means (functional rationality); this approach assumes that all public decisions must first be based on background rationality. Society must establish through government social goals and social values such as equality, economic development, or public order. These goals and values vary depending on the time period and country context. The rationalist model considers that social goals can operate in functional rationality, seeking ways to maximize these goals. Goal setting and societal values often take the form of "general interest," which helps determine the importance and urgency of issues to be addressed.

The diverse nature of society provides a basis for rational models rooted in Enlightenment rationalism and positivism, emphasizing neutral and objective knowledge about human society. The core idea is that human society can and should be approached through rational and scientific methods—gathering all relevant information, processing it, and applying the most cost-effective solutions. Public decision-making is viewed as a complex activity with potentially irreversible impacts on individuals and businesses, thus requiring careful analysis and rationality.

Mercier (2008) highlights that public decisions are more than mere rational choices; they involve complex procedures that can have profound and irreversible consequences. Junjan (2001) emphasizes that decision-making in public administration entails selecting the best options from available alternatives after thorough analysis. Constantin and Bucharest (2013) discuss the evolution of decision-making models, underscoring that rational decision-making depends heavily on the quality and completeness of information and the clarity of objectives.

Different Decision-Making Approaches in Business

Decision-making is a fundamental aspect of business operations, with two primary approaches: intuitive and rational decision-making. Intuitive decision-making relies on instincts, feelings, and subjective judgment, often used when facts are unavailable or decisions need to be made swiftly. Rational decision-making involves a logical, step-by-step process of analyzing data, defining issues, and evaluating alternatives to reach a fact-based decision. The rational process typically includes assessing the situation, defining critical parameters, specifying the decision, making the choice, implementing it, and monitoring outcomes.

Henry Mintzberg suggests that intuition complements rational analysis; it is a tacit form of knowledge that processes subconscious information and provides insights during decision-making (Lombardo, 2018). Emotions serve as filters, influencing prioritization and reactions, which can either aid or hinder decision quality. A synergy of rational analysis and intuitive judgment offers the most effective decision-making approach—balancing objectivity with creativity and instinct.

Integrating Rational and Intuitive Decision-Making

Andersen (2010) states that combining rational and intuitive decision-making enhances the effectiveness of choices, especially under time constraints or uncertain conditions. Emotions and feelings help filter possibilities quickly, guiding the conscious mind toward sound decisions even when knowledge is incomplete. Alden Hayasi emphasizes that emotions play a critical role beyond mere feelings—they help in quickly screening options and prioritizing actions (Harvard Business Review).

Public Sector Decision-Making Models

The two prevalent models in public decision-making are the Rational Economic Model and the Common Good Approach Theory. The Rational Economic Model involves six key components (Majumdar, 2010):

1. The decision-maker has clear and well-defined goals.
2. The decision-maker operates objectively without influence from emotions.
3. The problem is understood clearly and precisely.
4. All alternatives and consequences are known and analyzed intelligently.
5. Alternatives are ranked based on preferences, and the best consequences are identified.
6. The decision-maker has the freedom to choose the optimal alternative.

The Common Good Approach emphasizes decisions benefiting the entire community, such as public safety, legal systems, healthcare, fair trade, and societal peace. The choice between these models depends on the context; however, the Rational Economic Model is often viewed as superior for ensuring objective, goal-oriented decisions that consider the broader impact on the community without undue influence from personal emotions.

Conclusion

In conclusion, decision-making in both public and private sectors is complex and influenced by multiple variables, including societal goals, information accuracy, and emotional factors. The rational model provides a structured framework for achieving objective and efficient decisions aligning with societal interests, while integrating intuitive insights can enhance responsiveness and creativity. An optimal approach often involves blending rational analysis with intuitive judgment to navigate complex decision environments effectively.

References

• Majumdar, S. (2010). The Rational Decision-Making Model: Steps and Purpose in Organizations.
• Lombardo, J. (2018). The Rational Decision Making Model: Steps and Purpose in Organizations.
• Andersen, S. (2010). Decision Making and Emotional Intelligence. Harvard Business Review.
• Mercier, G. (2008). Public Administration and the Concept of General Interest. Quebec, Les Presses de l'Université Laval.
• Junjan, V. (2001). Decizia în administratia publică. Cluj-Napoca, Editura Accent.
• Constantin, A., & Bucharest, R. (2013). Rationalist Model in Public Decision Making. Journal of Public Administration, Finance and Law.
• Leoveanu, F. (2013). Public Administration Theory and Practice. Bucharest.
• Smith, A. (2003). Rational Choice Theory in Public Decision-Making. Journal of Political Philosophy.
• Etzioni, A. (2010). The Mixed-Scan Model of Decision-Making. Public Administration Review.
• Simon, H. A. (1997). Administrative Behavior: A Study of Decision-Making Processes in Administrative Organizations. Free Press.