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“Are faced with decision making everyday intuitive and rational decision. Making are the two ways ways that an individual can approach problem. Solving some people are very aware of feelings instincts and use them as guides to decision making these types of feelings are instinctive and rely on intuition and not facts in fact intuition is the ability to have a grasp on a situation or information. Without the need for reasoning in business.
People use this type of decision making. When facts are unavailable or in decisions are difficult in nature the second opposing type of decision making is called rational decision making. Which is when individuals use analysis facts and a step by step process to come to a decision rational decision making is a precise analytical process the companies use to come up with a fact based decision. Let s take a look at how the rational decision.
Making process can work in an organizational environment. Viola jones is a manager at the intestinal distress. Taco fast food restaurant. She s under enormous pressure from headquarters to increase her monthly profits violet is not sure what the solution is for her financial dilemma.
She has to decide to use the rational decision making model to determine the best path for a solution to do this violet must follow these six steps. Number one to find the problem. Number..
Two identify. The decision criteria. Number three allocate weight to the criteria. Number four develop.
The alternatives. Number five evaluate the alternatives and number six select the best alternatives. Let s take a look at the process violet use to determine how to increase company profits for her store. Violet first needs to define the problem.
This step is relatively easy for violet as upper management has already identified the issue her store profits have not increased month to month. So she needs to find the best solution to ink profits the next step facing violet is to determine what criteria. She will use to make her decision. The next step in a rational decision.
Making process is to identify the decision criteria. This step deals with choosing variables that will determine the decision outcome in violets case. She needs to determine the criteria or information..
That is relevant and will help her increase her profit. The criteria are usually dependent upon the individual s values and beliefs violet will make her decision based on her belief that she should not eliminate any employees to save money. She will only cut costs in other ways such as finding cheaper vendors shortening store hours. Changing menu options etc.
Her criteria will be how employees be affected. How will changes affect customers and how will changes affect quality violets next step is to allocate weights to the criteria. This means ranking. Which criteria is the most important to the decision making process violet feels that the biggest weight should be given to how the change will affect employees.
The other weights are then distributed equally the next step starts to consider solutions the next step is to develop alternatives. Which is where the potential solutions need to be considered there will not be any consideration in this step. Just a generated list of alternatives. Violin has brainstormed a short list of alternative solutions.
Select. A new distributor of food and supplies that will cost less money short and store hours. Which will limit overall overhead costs layoffs of employees who are making larger salaries or increase promotions to lure new customers and sales..
Now violet needs to consider the alternative list. She developed violets spent all weekend. Evaluating the alternatives to see which choice would have the least impact on employees. Yet.
Solve her financial dilemma. After much consideration violet has decided to submit her recommendation to management with the hopes that it will increase store profits. The last step in the rational decision. Making process is to select the best alternative or choose the best decision file.
It feels that in order to increase profits and protect your employees jobs. She needs to look for other ways to cut costs her recommendation to management is to find new vendors for areas of the company that will not affect product quality for example. Violet has already found a cheaper vendor cash register receipts that will save her 200 a month in general. Excellent managers are able to easily switch between analytical and intuitive decision making in addition managers should not look at rational analytical.
Decision. Making as exclusive of intuitive decision making in fact a combination of both types of decision making usually yields the best results in the rational model. The business decision maker needs to optimize the solution or select the best alternative certain types of business decisions are instinctive and rely on intuition and not facts intuition is the ability to have a grass on a situation or information..
Without the need for reasoning. The opposite of intuitive decision making is rational decision making. Which is when individuals use analysis facts and a step by step process to come to a decision. The decision maker needs to optimize or determine the best solution for the problem by using a six step model.
The steps are number one to find the problem number. Two identify the decision criteria. Number three allocate weights to the criteria. Number four develop.
The alternatives. Number five evaluate the alternatives number six select the best alternative in summary employee. Should rely on a mixture of both intuitive and rational decision making in order to provide the best solution to business decisions. ” .
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