Decision-making and Decision-making Models

Solution Preview

1. What are the risks of bypassing the steps in the following decision-making model?

Step-by-step rational decision making models increase the likelihood of making good decisions. The rational decision making model is based on the assumption that all individuals are rational and free from any biases. However, biases are inherent in human behavior, which can enter the decision-making process; so one must be aware of them and challenge these personal biases and assumptions. Then, they are less likely to impact on the decision-making model. Specifically, precise identification of the problem forms the first step in the rational decision making approach. After gathering relevant information and diagnosing the cause, different alternative solutions to the problem are developed. The same are then evaluated one by one and the most suitable alternative is chosen as the final solution to the problem.

The main risks of bypassing the steps in the following decision-making model are:

(1) When personal biases and errors occur

But, personal biases and heuristics could enter the decision-making model that increases the risk of bypassing essential steps. There are two basic exaggerations in the way with which people make their decisions:

· Some people put closure on the decision-making process too quickly; others keep avoiding to place closure on the decision-making. The first group is made up of "closure artists" who appear to enjoy the making of decisions. They make decisions quickly. They easily come to closure on what-should-I-do or what-needs-to-be-done questions. However, they are inordinately eager to cut off the considerations of some variables. After all, too many variables would make their decision-making more difficult and their lives too ambiguous! The second group is made up of "avoiders" who ...