Decision making is the process of making choices from amongst several options
Decisions are made at all organisational levels from strategic to operational
Types of Business decisions:
Here, the decision rules are known
Operational decisions are structured, frequent with more certainty often relying on data information from within the organisation
Here, the decision rules are not known- highly uncertain/ambiguous situations
Strategic decisions are rather Unstructured, made less frequently and may use for more information source from outside the organisation
In this case, the decision is strategic, non routine and semi structured with no clear cut answer.
2) DESCRIBE AND DISCUSS DECISION
Rational models are where decision makers adopt value maximising calculations and pursue alternatives that best meet organisational goals.
The rational model(problem structuring, search for alternatives, gather data about alternatives, evaluate alternatives and select, implement and monitor) has several weaknesses.
For example: It may be impractical to consider all consequences and accurate information may not be available
Bounded rationality models:
Bounded rationality refers to individuals making decisions by constructing simplified models which extract the essential features from contract without capturing all their complexities.
Here, Research suggests that decisions maybe subject to bias
Hence it is concluded that,
Rational decision making may be seen more…