In: Operations Management
Describe the Functional Model of Decision Making.
Pick two of the steps in the decision making process and describe how leaving them out might negatively affect a decision.
Functional model of decision making involves First understanding the problem, then gather relevant information to back up your probelm and then generate a relevant set of alternatives, examining the alternatives and selecting the best alternative which will solve the problem and then make the decision.
The two steps which are to be eliminated gathering of information and generating alternatives then decision making will be affected in negative manner.
gathering information helps a decision maker to find sources and information which would help in taking effective decision making. If these are not present to decision maker then decision will have high chances of bad results.
For example- I want to buy a House but i do not have ways to collect information like i would not go to friends, brokers, internet etc and directly go to make a decision to buy a house. The end result could be like i may purchase a house overpriced in bad location etc.
Generating alternatives is also important step because alternatives helps decision maker to have various options to solve the problem. if they are not present then decision would be in less in scope and not effective at all.
for example- I want to make a decision to buy A Car so that i can go to office, family trip etc. Alternatives will help me to make decision like should i buy fuel car or electric car? should i buy luxury car or affordable mid range car etc.