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Advantages Of Rational Decision Making

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Decision making is the process by which managers respond to various opportunities and threats by analyzing options and making decisions about goals and courses of action. It basically aims at identifying the problem and finding out the solution to that problem. Decision making is also crucial for running a business enterprise which faces a large number of problems requiring decisions. Today’s business environment is represented by high competition, constant changes, comprehensive globalization, large accessibility of data and information and the huge seepage of information and telecommunications technology. In this environment, decision making is increasingly based on the use and study of data, through the development of “models”, and the use …show more content…

The rational model is the first attempt to know the decision making process. It is a cognitive model in which managers use their thoughts for analyzing available alternatives and selecting the best one. It is considered by some as the classical approach to understand the decision-making process. Features of Classical Model includes Problems are clear, Objectives are clear, People agree on criteria and weights, All consequences can be anticipated, they are not biased in recognizing problems and lastly they are capable of processing ail relevant information. It helps ensure we consider the full range of factors relating to a decision, in a logical and comprehensive manner. The principle assumption of the rational decision making process is that human beings make rational decisions. However, there are numerous factors which determine our decisions, many of which are not rational. In many situations decisions have to be made with incomplete and insufficient …show more content…

Most importantly, the contingency model can make practitioners more sensitive to the variation in decision-making styles they may encounter in organizations. Implementation protocols should reflect this variation. Clearly, more research is needed to better understand how exactly content and context variables influence decision making with respect to implementation of health promotion programs. Conclusion In the present challenging world, the leadership decision making process can be complicated and overwhelming in almost all businesses. When we identify a pattern of irrational decision-making in our life, we have discovered what’s sometime is called bad habit. When we replace a pattern of irrational decision making with the rational pattern, we replace a bad habit with a good one. The replacement is at the level if action. Further decision making is situational in nature. Hence situation and problems should be evaluated and then correct approach should be adopted as mentioned

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The Cognitive Model- This model proposes that participation in decision making improves that upward and downward flow of information. The idea behind this model is to bring a better pool of information by using all levels of participation. In this case, bringing important information from the associates and information from managers can help to find a common solution helping the organization to have a better knowledge of what is going on and how to problems from the main roots. Figure 5.

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Often many choices can be communicated and order to make a decision and avoid judgment (Weber & Johnson,

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The Importance of Rationality At often times one may believe that making decisions should be predominantly based upon what one may feel or desire, though in reality such process frequently results in negative consequences, thus why in the process of making decisions, love should not overtake rationality. When love is prioritized in decision making, it tends to cause thoughts that typically won’t better the situation for those who are involved, while rationality would instead provide the proper reasoning to create a suitable outcome. In the process of making decisions, love should not overtake rationality.

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It is a systematic method that utilizes knowledge, measures, and environmental analysis to produce the most ideal solution. Each decision is analyzed based on its possible consequences with an emphasis on short and long-term solutions. These processes require ample amounts of information, time, and people. While quality solutions are produced, the willful choice model does not allow for flexibility regarding environmental changes such as technology and healthcare policy. Internal changes including turnover also negatively impact the rational decision process.

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On the other hand, a rational decision-making model is a systematic approach that gathers and analyzes relevant data, considers all available options, and evaluates the

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Leaders are often depicted as resolute, visionary, motivational, intent on reminding followers to get with the program or get off the team. And we 've all heard that it 's lonely at the top. No question that leaders may be called on to make difficult decisions and to demand compliance with those decisions. To fail to do so would, at times, be an unforgivable dereliction of duty. Servant-leadership, which may incorporate similar traits and approaches, operates from the perspective of leading for the best interest of the people or organization being led.

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One of the most common action that businesses as well as individuals needs to face on a daily basis is a decision making process. Some of the choices can be difficult, other very simple , yet no matter on the situation these choices can have a large impact on our future life. As we are all aware, conflict can occur very fast and easily, so for the same reason it is important to learn how to effectively deal with these kind of problems. There are many different techniques which we can use while reducing the tension , yet the six step model process is known as the most effective.

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Regardless of what position of leadership one may have, a leader must make decisions which may affect many people. Leadership is a place where spontaneous acts damage, rather than help the outcome of a particular task. Good leaders must think things thoroughly and come to best possible solutions for all. A great example for this type of situation would be the President of the United States. If the President were to be infuriated by another Nation’s acts, the President might at that very moment feel like his office should send troops to that nation or drop bombs.

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We have unlimited wants which can be satisfied by goods or services. But because of our limited resources (scarcity) only some of our wants can be fulfilled. We have to choose which of our needs will be satisfied. Rational choice is made when benefits and cost for each alternative is compared and the alternative with the biggest benefit over cost is chosen. This is a personal choice because each individual will assign different benefit and cost to each alternative based on personal preferences.

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Analysis: The Rational Choice Theory is a neoclassical theory that assumes offenders decide whether or not to commit a crime by applying their knowledge of potential offender and targets before deciding whether or not to commit a crime. This theory explains that offenders must have an awareness of local law enforcement and the community’s ability to stop crimes. Therefore, in the end they must weigh the gains versus the losses when committing the crime. The theory was expanded by Gary Becker who explains that an offender commits a crime based on the expected utility or monetary value.

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So most of the people know what is a rational choice but still act irrationally and make poor financial decision. So now the real question is why human beings do this. The main reason is that most of us are lazy or do not have time to think thru the ups and downs of a decision. So why shouldn’t people make irrational decisions. It is because most of the time making irrational decision might make people worse of than

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Everyday, people are faced with the task of making decisions. Most people decide when to wake up, what to eat, what to wear, who to interact with, and countless other choices. In a world surrounded by choices, people are confronted with easy-to-make and, conversely, challenging decisions. A decision can be influenced by one’s own experience, logic, and feelings. Making a decision is synonymous with a result; whatever choice one accepts, results in a particular outcome.

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For example, Managerial, Marketing, and Production, financial. It follows systematic and traditional based decision-making concept such as game

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