When your Decision is Rational ?

A decision is rational when you have considered all options, the positives and the risks that each carry, and made a choice which is in the best interest of the organization. The interests of the organization come first always and everytime, individual's interests always come later.

A General Rational Decision Making Model

Rational decision making processes consist of a sequence of steps designed to rationally develop a desired solution. Typically these steps involve:

Identifying a problem or opportunity

The first step is to recognise a problem or to see opportunities that may be worthwhile. A rational decision making model is best employed where relatively complex decisions have to be made.

The first decision making lesson should be to ask yourself if you really have a problem to solve or a decision to make.

Gathering information

What is relevant and what is not relevant to the decision? What do you need to know before you can make a decision, or that will help you make the right one?

Analyzing the situation

What alternative courses of action may be available to you? What different interpretations of the data may be possible?

Developing options

Generate several possible options. Be creative and positive.

Evaluating alternatives

What criteria should you use to evaluate? Evaluate for feasibility, acceptability and desirability. Which alternative will best achieve your objectives?

Selecting a preferred alternative

Explore the provisional preferred alternative for future possible adverse consequences. What problems might it create? What are the risks of making this decision?

Acting on the decision

Put a plan in place to implement the decision. Have you allocated resources to implement? Is the decision accepted and supported by colleagues? Are they committed to  making the decision work?

Strengths and Weaknesses of the Rational Decision Making Model

The main strength of a rational decision making model is that it provides structure and discipline to the decision making process.

It helps ensure we consider the full range of factors relating to a decision, in a logical and comprehensive manner.

However, we should always remember that whilst the model indicates what needs to be done, it’s often how things are done that characterises effective decision making.

Paul C. Nutt’s research illustrates that bad decisions were usually bad because two things were missing:

1. adequate participation of stakeholders in the decision making process;
2. sufficient time spent on generating a range of possible solutions.

Too often those who should have been involved weren’t, and solutions were proposed and acted upon too quickly. Often with disastrous effects!

A second weakness arises if we attempt to use the model in isolation. This is particularly important where complex or important decisions are involved.

The principle assumption of the rational decision making process is that human beings make rational decisions. However, there are numerous factors which determine our decisions, many of which are not rational. In many situations decisions have to be made with incomplete and insufficient information.

Judgement, intuition, experience and knowledge all come together when making decisions.

Putting the Rational Decision Making Model to work

Regardless of any perceived weaknesses these models are essential tools.