Leadership

Rational decision-making uses objectivity and logic, rather than subjectivity and intuition, to achieve a goal. That goal is to identify the problem, determine a solution based on different alternatives, and then find an answer. This is a more precise process that can be done when there is time to research and analyze the different possible outcomes. The aim of this decision-making model is to maximize benefits while minimizing the costs of decisions through objectivity.

Six Steps:

1. Identify the problem: this is where you determine what your issue is.
2. Establish decision criteria: this step brings values and preferences into the process.
3. Weigh decision criteria: this will help create priority in the decision.
4. Generate alternatives: this will give you different options for what to do.
5. Evaluate alternatives: identify the challenges and merits in the alternatives.
6. Select best alternative: this is where you choose the solution.

Learning, L. (n.d.). Principles of management. https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/rational-decision-making-vs-other-types-of-decision-making/

The Bounded Rationality decision-making model is also called the Satisficing Decision Making Model. Bounded rationality, or satisficing, aims to pick the most satisfactory or good enough decision, rather than the best one possible. In this model, not all the necessary information is needed to make a rational decision, due to limitations. Decisions are based on all the information that is readily available to us, rather than trying to figure out all the information that is out there. This model can be used when there are time constraints or there is limited information, prohibiting the use of the rational decision-making model. This model is also used to preserve mental energy and cut down on costs or expenditures.

WallStreetMojo. (n.d.). Bounded rationality. https://www.wallstreetmojo.com/bounded-rationality/

Decision-making is situational, meaning there is no true ideal process, which is the guiding idea behind the Vroom-Yetton model. Vroom-Yetton decision-making uses seven yes or no questions to guide the decision-making process. The answers to these questions then help you decide which decision-making process to use, such as making the decision based on what you know without conferring with your team, to reaching a decision cooperatively with your team. While this model is very flexible, it is also flawed in that the questions might not be specific enough to help with decision making.

Seven questions:

1. Is the quality of the decision important?
2. Is team commitment to the decision important?
3. Do you have enough information to make the decision on your own?
4. Is the problem well structured?
5. If you made the decision yourself, would the team support it?
6. Does the team share organizational goals?
7. Is conflict amongst the team over the decision likely?

Five decision-making processes:

1. Autocratic (A1): use the information you already have to make a decision without any more input from the team.
2. Autocratic (A2): consult with the team to get specific information that you need to make final decision.
3. Consultative (C1): inform the team of the problem and ask for opinions, individually, but don’t have a group discussion and then you make the final decision.
4. Consultative (C2): get the team together for group discussion about the problem and make the final decision yourself.
5. Collaborative (G2): work with the team to reach a group decision.

Mind Tools Content Team. (n.d.). The Vroom-Yetton decision model. MindTools. https://www.mindtools.com/adamhmy/the-vroom-yetton-decision-model

Intuitive decision-making involves pattern recognition, where your brain is reviewing everything you’ve learned from previous experiences to come to a decision with the current problem. Intuitive decision-making can be beneficial in situations that are familiar to you and that you have experience in. In situations where you lack experience or expertise, intuitive decision-making can be unhelpful because you are unable to recognize any patterns. Intuition is something that is known, understood, and believed by instinct, rather than using any rational thought processes. Intuitive decision making can also be flawed in that our prejudices might lead our decisions, there is insufficient consideration for alternatives, and emotional bias might affect our outcomes.

Atlassian. (n.d.). 5 Decision-making models to try if you’re stuck: the workstream. https://www.atlassian.com/work-management/team-management-and-leadership/decision-making/models

The recognition-primed model works by recognizing patterns by picking up cues in available information and based on that, a course of action is chosen. This course of action is referred to as an action script and this is where the outcome is considered. If this course of action is deemed acceptable, the decision is moved forward and if it is deemed unacceptable, the script is rewritten or a new action script is chosen. In this model, different courses of action are worked through one at a time and there is no comparison between them; the decision-maker simply goes through an action script and makes a determination.

Atlassian. (n.d.). 5 Decision-making models to try if you’re stuck: the workstream. https://www.atlassian.com/work-management/team-management-and-leadership/decision-making/models