Management Decision Making 2

Abstract

Decision making, the process of identifying and choosing alternative courses of action, may be rational, but it is often nonrational. Four steps in making a rational decision are: (1) identify the problem or opportunity, (2) think up alternative solutions, (3) evaluate alternatives and select a solution, and (4) implement and evaluate the solution chosen. Two examples of nonrational models of decision making are (1) satisficing and (2) intuition.