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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.
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?
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:
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.
Regardless of any perceived weaknesses these models are essential tools.
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