Decision Making Models

Question 1

What is the Rational Decision Making Model?

Answer 1

Based on the judgement of the pros and cons of various options and selecting the most logical and sensible alternative. Why? They are capable of processing ail relevant information, anticipates present and future consequences of decisions, search for all alternatives that maximizes the desired results.

Question 2

Explain the 6 steps of the Rational Decision Making Model

Answer 2

1. Problems are clear
2. Objectives are clear
3. People agree on criteria and weights
4. All alternatives are known
5. All consequences can be anticipated
6. Decisions are rational

Question 3

What is the Intuitive Decision Making Model?

Answer 3

A decision making model based on intuitions or “gut feeling”, intuitive decision making model is much less structured and favours subjective rather than objective judgement. Why? Requires little effort and information gathering resulting in on-the-spot decisions, recognizes patterns and similarities in events and information and using them to configure a course of action

Question 4

What is the Bounded Rationality or Administrative Man Model?

Answer 4

A decision making model which Involves the achievement of a goal and does not assume individual rationality in decision process. Why? The model assumes people normally settle for less rather than the best solution, because decisions they confront demands greater information, time and processing abilities than what people can rationalize.

Question 5

Explain Edward De Bono’s 6 Thinking Hats

Answer 5

A thinking framework that helps you look at important decisions by breaking them down to 6 different perspectives. Why? Helps you make better decisions by forcing you to move outside of your habitual ways of thinking

Question 6

What are the 6 coloured hats?

Answer 6

a) White hat –> Neutral objectivity: concerned with data, facts, figures and information
b) Red hat –> Emotional view: the intuitive view, hunches, “gut”, and feeling
c) Yellow hat –> Logical positive: optimism and positivity, covers hope
d) Black hat –> Logical negative: careful and cautious, judgement
e) Green hat –> Creativity: associated with new ideas
f) Blue hat –> Process control: Organizing hat, controls the use of other hats