Rational Decision-Making Models in Business

Introduction

Decision-making means selecting the best solution for a problem from a number of alternative solutions. Two models of decision-making are rational decision-making model and irrational decision-making model. “Rational decision-making models involve a cognitive process where each step follows in a logical order from the one before.” (Rational decision-making models, n.d., para.1). Rational decision-making model is of various kinds in which a variety of steps are included in every model. Rational decision process is the best applicable method in a project management. If a project is being done for the progress of an organization, firstly it defines the aim of the business and describes the problem or circumstance of the decision to be taken; then recognizes the main reason for the problem. When it understands the actual problem clearly, it creates various probable resolutions in order to solve the problem very effectively. After estimating all the solutions, it selects the most excellent and suitable solution and it puts it into practice which resolves the problem successfully. Rational model produces a desired resolution for any problem in an organization and it can formulate improved and rapid decisions. Irrational decision-making is selecting the illogical decision from two choices. Moreover, the irrational decision is the one which is not good for the situation.

Main body

Effective communication skill is essential for successful project management. For the development of a project, there should be effective communication between the project team members and project manager, and between the developer and the customer. In the analysis process, the customer should take part with the developer, because then only the developer can know the actual problem and requirements of the customer. Therefore, to collect the information it should conduct face-to-face meeting, use questionnaires and so on. During this process, the developer can ask questions to the customer, and while asking questions it should be in clear and simple manner which the customer understands easily. The developer must also listen carefully to the customer while he is answering. The project team members should have good communication skill to express their ideas and decisions. They can use charts and sketches to demonstrate their ideas. During the presentation and communication with the public, the project developers should talk clearly. The developer must explain the complex ideas to the customers in simple way giving examples or using some other simple techniques. Till the completion of the project, there should be contact between the developer and customer; for that they should keep in contact through phone or email which is a fast and cost effective communication media than others.

Decision-making is the result of the selection criteria from different alternatives; this can be mainly as a result of cognition. Decision-making is a skill in taking effective and efficient decision from the possible alternatives. Decision theory is choosing the best decision from all possible outcomes. Decision theory should be specific and descriptive, it should not have any dependency on the other variables for decision-making approach. “The decision-making theories are the cognitive dissonance, consistency, commitment, certainty effect, choice supportive bias, confirmation bias, scarcity principle and the sunk cost effect.” (Theories about decision-making, 2009, para.1).

Cognitive dissonance is the negative feeling after the implementation of the theory and it is the feeling that the project could have reduced the discomfort and effort to make it much better. The consistency in the project management includes the work to be consistent and specific and free from errors. They have to be consistent in each step, and should be specific and reduce discomforts in analyzing the project. Commitment is the major source in the decision-making of the project management; it should have the commitment to adhere to the deadline and clear determination, devotion and dedication to do the project. Certainty principle includes the project should be certain and it should have the value that is not an assumption or a manipulation from any other sources.

Utility theory decision-making is the relative satisfaction in decision-making process. It makes use of the different kinds of mathematical models in the decision-making approach and the decision maker has the liberty to choose the qualitative and the quantitative alternatives in decision-making approach. The regret theory is the one which is mainly in use after completion of the project and when errors or incompletion may occur in the project. This is a theory related to the mental process of the humans.

Conclusion

Peer-to-peer interaction has a lot of advantages in the education field. It provides a good outcome among the students, and it has been recognized well in the education sector. Good support and recognition is given to the education sector. It is the best way for the face to face communication of the students. The peer relationship is a barrier free network, and it does not have any limitations during interaction. In the classroom when demonstration is performed by the teachers it gives professional development to the students through live examples and pictorisation of the events and happenings. It helps in reducing the communication gap among the students.

Reference List

Rational decision-making models. (n.d.) decision-making-confidence.com.

Theories about decision-making. (2009). ChangingMinds.org. Web.

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NerdyRoo. (2021, December 1). Rational Decision-Making Models in Business. Retrieved from https://nerdyroo.com/rational-decision-making-models-in-business/

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NerdyRoo. "Rational Decision-Making Models in Business." December 1, 2021. https://nerdyroo.com/rational-decision-making-models-in-business/.

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NerdyRoo. 2021. "Rational Decision-Making Models in Business." December 1, 2021. https://nerdyroo.com/rational-decision-making-models-in-business/.

References

NerdyRoo. (2021) 'Rational Decision-Making Models in Business'. 1 December.

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