DQ 5-1

Dq5-1 responses

1.

Business people are faced with decision making every day. Intuitive and rational decision making are the two ways that an individual can approach problem solving. Some people are very aware of feelings or instincts and use them as guides to decision making. These types of feelings are instinctive and rely on intuition and not facts. In fact, intuition is the ability to have a grasp on a situation or information without the need for reasoning. In business, people use this type of decision making when facts are unavailable or when decisions are difficult in nature.

The second, opposing type of decision making is called rational decision making, which is when individuals use analysis, facts and a step-by-step process to come to a decision. Rational decision making is a precise, analytical process that companies use to come up with a fact-based decision. Let's take a look at how the rational decision-making process can work in an organizational environment.

The rational route involves the following steps:

· Assess the situation

· Define critical

· Specify the decision

· Make the decision

· Implement it Monitor and make adjustments as events unfold

The intuitive brings to the equation ingenuity and detail. Creativity and sensitivity assist in this by tilting decisions in the direction of success. Especially when time is lacking for extensive qualitative analysis, we need to resort to a combination of instinct, experience and confidence to act in the decision-making process swiftly. In this respect, Henry Mintzberg sustains that instinct is a tacit form of knowledge and that it complements the rational decision-making approach (the mind processes information subconsciously all the time and when the conscious mind releases something the subconscious already knew, revelation takes place).

Emotions also act as a filter, as they provide prioritization to inputs received and provoke specific (and subjective) reactions to different influences. In this respect, the mind is always approaching a decision with an emotional filter and its cohort of associated responses. While this cannot be avoided, it is important to be aware of it and use it to our advantage, as it can assist the decision-makers understanding of intangibles and determination, providing a sense of priority. Decisions may indeed be flawed, but they might also carry a spark of creativity and some insight.

It would be fair to say that the combination of a rational and intuitive approach is the only possible path in decision making. A good quote to crystallize this notion is provided by Alden Hayasi in his popular Harvard Business Review article:

Decision-making is far from a cold, analytic process… Instead our emotions and feelings play a critical role by helping us filter various possibilities quickly, even though our conscious mind might not be aware of the screening. Our intuitive feelings thus guide our decision-making to the point at which our conscious mind is able to make good choices. So, just as an abundance of emotion can lead to faulty decisions, so can its paucity

Lombardo, J. (2018). The Rational Decision Making Model: Steps and Purpose in Organizations

2.

The two different decision making models that are used in the public sector are Rational Economic Model and the common good approach theory. The Rational Economic Model has 6 key components according to Rational Economic Model - a basis of Decision-making “1.The decision-maker has a clear and well-defined goal. 2. The decision-maker is fully objective and rational and not influenced by emotions. 3. The decision-maker understands the problem clearly and precisely. 4. He knows all the alternatives and their consequences. He has full knowledge and can analyze the alternatives intelligently. 5. He can rank all the alternatives according to the preference and knows which consequence is best. 6. He has full freedom to choose the alternative which he thinks will optimize the decision” (Majumdar, 2010). The common approach theory regarding the public sector regards everyone befits for the common good of the community. This includes public safety, legal system, affordable healthcare, fair trade & commerce, and a peaceful society.  The one I feel that is better is it depends, it depends my role within the public sector and what by duties and oblation are to the public. However, for this discussion question I feel that the Rational Economic Model is the better model as it has to do with a clear understanding of objectives and goals, the leader is not influenced by emotion but for the betterment of the community, and they are aware of the decision they make and the consequences of their decisions.  

Reference

Rational Economic Model - a basis of Decision-making Author: Subir Majumdar Jun 2010 Retried from: http://www.indiastudychannel.com/resources/118815-Rational-Economic-Model-by-Herbert-Simon-a-Basis-of-Decision-making-Assumptions-and-Limitations.aspx