Asked by Michael Singgih on May 14, 2024
Verified
Describe the rational model of decision making.
Rational Model
A decision-making model that assumes individuals will make decisions based on logical and systematic analysis of alternatives.
Decision Making
The cognitive process of selecting a course of action from among multiple alternatives, typically aiming for the best outcome.
- Describe the rational model of decision making and its importance.
Verified Answer
HV
Hayley VanityMay 21, 2024
Final Answer :
Answers will vary. The rational model of decision making comes from classic economic theory and assumes the following:
(i)The outcome will be completely rational.
(ii)The decision maker has a consistent system of preferences, which is used to choose the best alternative.
(iii)The decision maker is aware of all the possible alternatives.
(iv)The decision maker can calculate the probability of success for each alternative.
In the rational model, the decision maker strives to optimize, that is, to select the best possible alternative.
Given the assumptions of the rational model, it is unrealistic. There are time constraints and limits to human knowledge and information-processing capabilities. In addition, a manager's preferences and needs change often. The rational model is thus an ideal that managers strive for in making decisions, and it captures the way a decision should be made, but it does not reflect the reality of managerial decision making. Please see the section "Models and Limits of Decision Making" for more information.
(i)The outcome will be completely rational.
(ii)The decision maker has a consistent system of preferences, which is used to choose the best alternative.
(iii)The decision maker is aware of all the possible alternatives.
(iv)The decision maker can calculate the probability of success for each alternative.
In the rational model, the decision maker strives to optimize, that is, to select the best possible alternative.
Given the assumptions of the rational model, it is unrealistic. There are time constraints and limits to human knowledge and information-processing capabilities. In addition, a manager's preferences and needs change often. The rational model is thus an ideal that managers strive for in making decisions, and it captures the way a decision should be made, but it does not reflect the reality of managerial decision making. Please see the section "Models and Limits of Decision Making" for more information.
Learning Objectives
- Describe the rational model of decision making and its importance.
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