MGT502 GDB idea solution Spring 2011

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[size=12][COLOR="red"]full solution in attachment
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Rational Decision-Making
Model
“A decision-making model
that describes how individuals
should behave in order to
maximize some outcomes”
Steps in the Rational Decision-
Making Model
1. Define the problem.
2. Identify the decision
criteria.
3. Allocate weights to the
criteria.
4. Develop the alternatives.
5. Evaluate the alternatives.
6. Select the best alternative.
The optimizing decision maker is rational. He or she makes consistent, value-maximizing choices
within specified constraints.

The Rational Model
Step 1: Defining the problem
• A problem is a discrepancy between an existing and a desired state of affairs.
Many poor decisions can be traced to the decision maker overlooking a problem or defining the
wrong problem.