Rational Decision Making

Rational Decision Making

The Model Defined

The Rational Decision Making Model was developed by Dr. Stephen P. Robbins of San Diego State University. This model, used largely in studies of organizational behavior, provides a sequential system for making decisions to be used by managers and groups in organizations and businesses. The seven steps of the model include:

1) Define the problem

In Robbins' model, the first step is to take the time to truly define the problem. It isn't sufficient to just observe and record the side effects or symptoms of a situation.

2) Generate all possible solutions

Brainstorm all the ways the problem could be solved.

3) Generate objective assessment criteria (weight the criteria)

This step requires the group to evaluate what outcomes would likely occur with each proposed solution. The group also has to decide what objective measures will be placed on factors like cost, time to implement, ease of implementation, or other issues.

3) Choose the best solution from generated responses

After putting objective weights to each component of the potential solutions, choose the best possible solution.

4) Implement the chosen decision

After deciding which solution is best, put that solution into action.

5) Evaluate the "success" of the chosen alternative

Did the chosen solution solve the problem? Did it solve only part of the problem? Did it create new problems?

6) Evaluate the "success" of the chosen alternative

Did the chosen solution solve the problem? Did it solve only part of the problem? Did it create new problems? Evaluate the "success" of the implemented solution and decide if you need to proceed to step 7.

7) Modify decision based on step 6

If the "solution" caused more problems, or simply didn't solve the original one, modify the choices, based on the evaluation in step 6.

Criticisms of the Model

The biggest drawbacks to this model are the assumptions that have to be made before you can successfully apply the model. You have to have problem clarity - that is, you have to be able to clearly define the cause of the negative situation (the problem). You have to know all the potential solutions that could solve the problem, and sometimes, the information available at the time is insufficient in quantity, quality, or accuracy to provide all possible solutions.

The model is also best applied in situations where you have clear, constant preferences between solutions. There is no room for political motivations to influence decision making here. The model depends on one clear, optimal choice presenting itself after analysis. The final drawback to this form of decision making is that it takes a lot of time. Lots of the important decisions business leaders have to make, have to be made quickly. This model is simply not appropriate to use in urgent situations.

Criticisms abound for the rational model based on limitations of time, money, and other resources. This model assumes that one has all the time in the world to make a decision and all the money in the world to implement costly interventions. Evolutions of this model brought us to Simon's