Management decision making models
Using such an approach can help to ensure discipline and consistency is built into your decision making process. As the word rational suggests, this approach brings logic and order to decision making.
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Our rational decision making model consists of a series of steps, beginning with problem/opportunity identification, and ending with actions to be taken on decisions made.
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There seems to be a problem with decision making. According to Ohio State University management professor, Paul C. Nutt, we only get about 50% of our decisions in the workplace right! Half the time they are wrong, so there is clearly plenty of scope to improve on our decision making processes. Based on his research into over 300 decisions, made in a range of organizations, he discovered that
“Some tactics with a good track record are commonly known, but uncommonly practiced.”
Why? Well one reason that emerged from his research is that:
“Too often, managers make bad tactical selections ….. because they believe that following recommended decision-making practices would take too much time and demand excessive cash outlays.”
Nutt argues that using good decision making practices actually costs very little. Our rational decision making model is our free tool to help you improve the way you make decisions.
This article is part of our series on decision making. Our first article, types of decision making outlines a range of decision making approaches. Rational decision making forms part of what we have termed types of decision, categorized by process. In this category we have put two contrasting approaches, that of rational decision making and that of judgement or intuitive decision making.
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What is the difference between the strategic management model and the strategic decision-making process?
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