Steps and Limits to Rational Decision Making Managers make decisions every day. Decision making is the...

   

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Steps and Limits to Rational Decision Making Managers make decisions every day. Decision making is the process of choosing a solution from available alternatives. Rational decision making is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. Rational decision making is a six-step process. First, identify and define the problem. A problem occurs when there is a gap between a desired state and an existing state. In order to begin the decision-making process, managers have to be aware of the problem; be motivated to fix it; and have the skills, knowledge, abilities, and resources to fix the problem. The second step in the rational decision-making process is to identify the decision criteria. Decision criteria are the standards used to guide judgments and decisions. Decision criteria are the standards used to guide judgments and decisions. Once managers have determined the decision criteria, they must assign weights to the criteria. Some managers choose to use absolute comparisons, in which each criterion is compared with a standard or ranked on its own merits. Another option is to use relative comparisons, in which each criterion is compared directly with every other criterion. The next step in the rational decision-making process is to evaluate each alternative against each criterion. This can be a lengthy step based on the amount of information that must be collected. The final step in the decision-making process is to compute the optimal decision by determining the optimal value of each alternative. This is done by multiplying the rating for each criterion found in Step 5 by the weight for that criterion found in Step 3. Then the manager would sum those scores for each alternative course of action they generated in Step 4. While managers who complete all of the steps of the rational decision-making process will make better decisions than those who don't, there are limits to rational decision making. In a "perfect" world with unlimited resources, managers would maximize decisions by choosing the best alternative. However, most managers have limited resources and must satisfice or choose a "good-enough" alternative. is a process of weighing decision criteria in which each criterion is compared with every other criterion. Maximizing comparisons Relative comparisons O Absolute comparisons O Satisficing comparisons In the decision-making process, which of the following best defines the term maximizing? O It refers to choosing the best alternative course of action in decision making. O It refers to selecting the best statistical method for making comparisons. O It refers to selecting the most efficient technique for evaluating comparisons. O It refers to choosing the optimal decision criteria in decision making. Steps and Limits to Rational Decision Making Managers make decisions every day. Decision making is the process of choosing a solution from available alternatives. Rational decision making is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. Rational decision making is a six-step process. First, identify and define the problem. A problem occurs when there is a gap between a desired state and an existing state. In order to begin the decision-making process, managers have to be aware of the problem; be motivated to fix it; and have the skills, knowledge, abilities, and resources to fix the problem. The second step in the rational decision-making process is to identify the decision criteria. Decision criteria are the standards used to guide judgments and decisions. Decision criteria are the standards used to guide judgments and decisions. Once managers have determined the decision criteria, they must assign weights to the criteria. Some managers choose to use absolute comparisons, in which each criterion is compared with a standard or ranked on its own merits. Another option is to use relative comparisons, in which each criterion is compared directly with every other criterion. The next step in the rational decision-making process is to evaluate each alternative against each criterion. This can be a lengthy step based on the amount of information that must be collected. The final step in the decision-making process is to compute the optimal decision by determining the optimal value of each alternative. This is done by multiplying the rating for each criterion found in Step 5 by the weight for that criterion found in Step 3. Then the manager would sum those scores for each alternative course of action they generated in Step 4. While managers who complete all of the steps of the rational decision-making process will make better decisions than those who don't, there are limits to rational decision making. In a "perfect" world with unlimited resources, managers would maximize decisions by choosing the best alternative. However, most managers have limited resources and must satisfice or choose a "good-enough" alternative. is a process of weighing decision criteria in which each criterion is compared with every other criterion. Maximizing comparisons Relative comparisons O Absolute comparisons O Satisficing comparisons In the decision-making process, which of the following best defines the term maximizing? O It refers to choosing the best alternative course of action in decision making. O It refers to selecting the best statistical method for making comparisons. O It refers to selecting the most efficient technique for evaluating comparisons. O It refers to choosing the optimal decision criteria in decision making.

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Answer 1 B Relative Comparisons Explanation While making ... View the full answer