Understanding the Rational Decision-Making Process- Steps and Strategies for Effective Decision-Making

Understanding the Rational Decision-Making Process- Steps and Strategies for Effective Decision-Making

Decision-making occurs at the professional and personal levels. Decisions regarding various aspects are made every so often. Each decision can be classified as a risk-taking venture. The process of making decisions involves multiple steps. First, the problem, challenge, or dilemma must be classified. The classifications vary from unique and common to generic. Next, the problem should be clearly defined. The involved parties should then specify the solutions to the problem. Fourthly, the participants should select the right as opposed to acceptable. Accordingly, this will facilitate meeting basic requirements prior to consideration of alternatives and compromises. Fifth, the stakeholders must decide the required commitment to implement the decision. Finally, the validity and effectiveness of the decision should be tested against the course of occurrences (Drucker, 1967). Following these steps while making decisions facilitate effective decision-making.

Decisions can be classified into strategic, tactical, or operational. Top management teams, boards of directors, and CEOs usually make strategic decisions. Managers make tactical decisions: decisions related to marketing, human resources, and scope of business aspects. Operational decisions are made by all employees in all entities. They facilitate collaboration, work-life balance, communication, and work effectiveness (Understanding Decision Making, n.d).

Rational decision-making follows specific steps, as highlighted in the diagram below. In rational decision-making, the participants must obtain all the necessary information on the alternatives and seek to maximize the outcomes. The highlighted steps enable users to make sufficiently good, intuitive, and creative decisions. Various dimensions measure creativity: fluency, flexibility, and originality (Understanding Decision Making, n.d).

During decision-making, the management can use various strategies to enhance organizational creativity. These include diversifying the composition of a team, leading the brainstorming process, challenging the team members to attain engagement, and creating a culture that supports creativity (Understanding Decision Making, n.d).

References

Drucker, P. F. (1967). The Effective Decision. Harvard Business Review.

Understanding Decision Making. (n.d). Retrieved from https://courses.lumenlearning.com/principlesmanagement/chapter/11-2-understanding-decision-making/

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

Examine the nature of decision-making and the type of decisions.

Understanding the Rational Decision-Making Process- Steps and Strategies for Effective Decision-Making

Identify and define the rational decision-making process. Identify the various specific steps in this process