Rational Decision Making

Topics: Decision making software, Decision theory, Decision making Pages: 2 (674 words) Published: March 25, 2012
Globalism is the term that has been mentioned in the field of business nowadays. There are a lot new developments and techniques are introduced to organizations. This creates different problems to the managers. A decision-making is a key to the survival to an organization. Mangers are needed to make sure the organization to modernize and making improvement in order to achieve the goals. Decisions are important in both managerial and organizational actions. Mangers need to consider about the uncertain environment and have to critically make decisions on new business opportunities, products, customers, suppliers, markets and developments. This will need the ability to make the right decision. According to the businessdictionary, the definition of rational decision-making is “A method for systematically selecting among possible choices that is based on reason and facts. In a rational decision making process, a business manager will often employ a series of analytical steps to review relevant facts, observations and possible outcomes before choosing a particular course of action.” (http://www.businessdictionary.com/definition/rational-decision-making.html#ixzz1qB5Xt9Cm)

A rational decision making process is defined as steps as setting the objectives, understand problem, determine options, evaluate problems, and finally making a choice. The rational means using logical and order to decision making. The rational decision-making contains different steps, the process of the problem, understand the opportunity and ending it with actions.

The first step is to understand the problem or look for an opportunity. It is not easy to find out and define the problem. When the manager is defining the problem, it has to identify critically or strategically the problem. Once the problem has found out, it can be solved easily and so for the first step it is so important to understand the problem. The second step is to understand the problem. The decision maker needs to find out...
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