In: Operations Management
Apply alternative decision-making theories including the comprehensive rational model, The Science of Muddling Through and Etzioni’s Mixed Scanning.
Decision Making could be defined as the study of identifying and choosing from alternatives,the best option that suits a purpose. It is usually regarded as a cognitive study as it involvesmental and logical reasoning. It is also a course of action consciouslychosen based on some criteria from available alternatives for the purpose of desired result. In decision-making, there are various alternatives that worth to be considered but the interest isnot on the number of different alternatives rather to identify all the alternatives and choose theone with the highest probability of success or that best fits specific goal or objective. In decision-making, there are various alternatives that worth to be considered but the interest isnot on the number of different alternatives rather to identify all the alternatives and choose theone with the highest probability of success or that best fits specific goal or objective
Characteristics of Decision-Making:
It is invariably based on rational thinking. Since the human brainwith its ability to learn, remember and relate many complex factors, makes the rationalitypossible.
It is the process followed by deliberations and reasoning.
It is selective, i.e. it is the choice of the best course among alternatives. Inother words, decision involves selection of the best course from among the availablealternative courses that are identified by the decision-maker.
It is usually purposive i.e. it relates to the end. The solution to a problemprovides an effective means to the desired goal or end.
Although every decision is usually positive sometimes certain decisions maybe negative and may just be a decision not to decide. For instance, the manufacturers ofVolkswagen car once decided not to change the model (body style) and size of the caralthough the other rival enterprise (i.e. the Ford Corporation) was planning to introduce anew model every year, in the USA.
Every decision is based on the concept of commitment. In other words,the Management is committed to every decision it takes for two reasons- viz., (i) itpromotes the stability of the concern and (ii) every decision taken becomes a part of theexpectations of the people involved in the organization.
The rational comprehensive model takes a scientific/rational approach to problem solving and, in its purest application, would result in a full analysis of all possible factors affecting a given set of circumstances and of all possible alternatives to resolving the problem under study. The systematic model provides the policy researcher with a firm model for identifying objectives, analyzing alternatives, making comparisons, selecting the best decision making. The rational model can also enhance the effectiveness and efficiency of the process and aid in decision making.