ADMS 2400 Lecture Notes - Lecture 12: Groupthink, Rationality, Motivation
21 Feb 2018
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Chapter 12: list and explain the six steps of the rational decision-making model. Define the problem- many poor decisions can be traced to the decision maker overlooking a problem or defining the wrong problem. Identify the criteria- what is relevant when making the decision. Allocate weights to criteria- helps to prioritize what is important. Develop alternatives- do not appraise, just list the options available. Evaluate the alternatives- rate them on the basis of advantages and disadvantages. Select the best alternative- the alternative that has the most strengths/advantages is selected: the rational decision-making model contains a number of assumptions. List and explain three assumptions of the model and give an example to illustrate each. Problem clarity- the problem is clear and unambiguous. For example laying off employees because the company cannot afford it. Known options- it is assumed the decision maker can identify all the relevant criteria and can list all the viable alternatives.
