The Rational Model of Decision-Making Employs the Use of Logic

The Rational Model of Decision-Making Employs the Use of Logic
The rational model of decision-making employs the use of logic to arrive at the best-suited decision. This model is the exact opposite of the intuitive decision-making model. The rational decision-making model thoroughly scrutinizes the available option so that the most beneficial and cost-effective decisions are made (Power et al., 2019). This model requires extensive time and, therefore, should only be adopted where there is a significant time to carry out research. There are five key steps that are involved in the rational decision-making model. The first involves clearly defining the problem at hand. This step helps understand the kind of issues to look solutions for. For instance, a manager of a company may seek to find solutions for increasing profits. The problem, in this case, would be the best strategy to increase profits.
The second step in the rational decision-making model is to identify the criteria to use while making the decision. This step mainly aims at collecting relevant data. From the above example, the manager could review relevant data concerning the most effective way to increase profits. The third step is assigning varying weights to each identified criterion. For instance, after extensive research, the manager must have come up with several ways of increasing profits. At this stage, the manager should determine the relative strength of each identified criterion. The fourth step involves creating a list of available options. These options should be numbered according to priority (Power et al., 2019). For example, here, the manager should list the options starting with the one with the most weight to the one with the least. The last step is to select the best option from the list. The act of selecting the best option finalizes the process of rational decision-making.
Evidence has revealed several biases that may arise in the process of decision-making. One of these is the overconfidence bias, where a person is so confident that their decision is the best that they fail to consider any other alternative. The second bias is confirmation, where a person favors information that reinforces their past beliefs. An example is when a human resource manager decides to hire a person since they are left-handed. The bias here would be if the human resource manager hired the person because of the belief that left-handed people are more creative than right-handed ones. The third bias is referred to as the availability bias. In this bias, an individual tends to generalize things according to the information that ...