Rational Decision-Making Model
The Rational Decision-Making Model is a process for making logically sound decisions.[1] The model comes from Organization behavior.
Steps in the Rational Decision-Making Model
- Define the problem.
- Identify the decision criteria.
- Allocate weights to the criteria.
- Develop the alternatives.
- Evaluate the alternatives.
- Select the best alternative.
Assumptions of the Model
- Problem clarity.
- Known options.
- Clear preferences.
- Constant preferences.
- No time or cost constraints.
- Maximum payoff.
References
- ^ Robbins, Stephen P., and Timothy A. Judge. Organization Behavior. 12th ed. Upper Saddle River, New Jersey: Pearson Prentice Hall, 2007. 156-158.