Question

How Can Decision-Making Process be applied To any organization that you think of. Discuss with practical examples. Follow all steps of decision making process from top to bottom.

It Should include.

Executive summary
Introduction
Analysis
Conclusion & Recommendations

Word limit is 5000 (words)

Answer 1

Executive Summary

The survival or failure of an organization is primarily based on the quality of the management ,which drives the operation of the organization. Decision-making is one of the many functions ofthe management. However, it is a basic function that has the major contribution in the triumph orfailure of the company. The manager is responsible for making decisions for moving the organization towards achieving its strategic goals. This makes the decision-making an important aspect of the planning process. Planning is an important concern of the management at it is deemed as a process that is helpful in the determination of the other key functions such as organizing, management of the human resources and control. The different techniques employed for decision-making are directly dependent on different levels of the management and the kinds of decisions that are taken at every management level. In the current fast-evolving business environment, there is a need to spend less but enough time on the decision-making process which means that decisions should not be made thoughtlessly. Each action of the management within an organization is usually a result of the decision-making process. The term ‘decide’ means coming to a resolution or a conclusion as to what the company is expected or supposed to do in the near future. Decision-making can be considered as an indispensable aspect of the manager’s life wherein innumerable decisions are made on an everyday basis for achieving the anticipated goals of a company. In the case of business undertakings, the implementation of the organizational strategies is characterized by decision-making at each step. Some of the managerial functions that are carried through with the help of the decisions are planning, staffing, organizing, directing, controlling and coordinating. Thus, decision-making forms the base of the managerial activities within an organization. This report is aimed at establishing the importance of decision-making within an organization while providing an overview of the management decision-making. The report offers an evaluation and analysis of the current and potential impact of the strategic decision-making on the functionality of the company. The method involved in the analysis of the information involves literature review of the existing literature and research on the subject. The report aims to offer an effective model for employing precise and accurate decision-making within an organization. The report identifies rational decision-making model as the most appropriate model for making decisions within an organization. This is because the rational model is based on the series of clearly defined and sequential activities. These activities identify the issues in an effective manner and come up with several courses of action. The model helps in recognizing the most appropriate course of action for the issue at hand and helps in its implementation. The report establishes that decision-making is not only important for the planning processes of the organization but also for upholding the nature of working and values of an organization.

Introduction

Management dates back to the 20th century and gas existed for hundreds of years. In its years of existence, management has been successful in transforming the social and economic content. The contribution of the management in the humanity development is evident from its omnipresence in everyone’s day-to-day activities. There is no organization that works in the absence of management and whether an organization would succeed or fail depends heavily on its managerial capability and quality. Management is the method of making the plan, organize, lead and control the work of the organization and organization members. Management is the fundamental factor which helps the organization to achieve its objectives and goals. According to various professional economists, management is the fundamental factor or key of production. Management has defined as the efforts of getting work done. In management, managers use the physical and human assets of the organization to attain the target. In the organization, management strives for achieving the goals and makes sure that organizational resources are being used effectively and within best interests of a society. Management is a nonstop process which aims to accomplish the given task. In the organization, managers perform various interrelated activities by using resource available in the organization in order to achieve organizational goals. Decision making is the primary function of management. In business, management decision making refers to selecting the best way and planning to make business successful . Various professionals categorize the management functions in four components. These components are planning, organization, planning, influence and control. Every individual in the organization collect the information and gather in order to make various decisions. The changes and lives of others in the organization are affected by these decisions. An ethical part or component is involved in every decision so it becomes very important to know whether the decision made by the manager or employee is ethical or not. The report would review the literature available on the subject of management decision-making in the coming sections. All the different aspect of the decision-making would be discussed in detail. The importance of the decision-making for the top management would be evaluated through the research. The literature review would offer an in-depth assessment of the rational decision-making model. The rational model is an iterative behavioral process which is required to be recycled again for each decision-making process. The recycling is necessary as each decision leads to actions. The most important aspect of the decision-making process is that it allows executives to address each issue or opportunity with a fresh outlook. Therefore, the executives do not have to approach the issues with a prejudiced attitude. All the decisions are based on the deep evaluation of the conditions and situation which makes it highly effective.Based on the research work, a conclusion is formed which sums up the entire business report and magnifies the highlights of the report.

Analysis

DECISION MAKING PROCESS IN MANAGEMENT

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach increases the chances that you will choose the most satisfying alternative possible.

Decision-making is an integral part of modern management. Essentially, Rational or sound decision making is taken as primary function of management. Every manager takes hundreds and hundreds of decisions subconsciously or consciously making it as the key component in the role of a manager. Decisions play important roles as they determine both organizational and managerial activities. A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals. Decision making process is continuous and indispensable component of managing any organization or business activities. Decisions are made to sustain the activities of all business activities and organizational functioning.

Decisions are made at every level of management to ensure organizational or business goals are achieved. Further, the decisions make up one of core functional values that every organization adopts and implements to ensure optimum growth and drivability in terms of services and or products offered.

As such, decision making process can be further exemplified in the backdrop of the following definitions.

Definition of Decision Making

According to the Oxford Advanced Learner’s Dictionary the term decision making means - the process of deciding about something important, especially in a group of people or in an organization.

Trewatha & Newport defines decision making process as follows:, “Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem”.

Examples of Decision-Making Processes Successes

In a sense, a company’s entire history is a reflection of making decisions. Some of the top companies in the world have turned a failure into a success by focusing on the last crucial step in all decision-making processes: evaluating the decision after the fact.

One example of this is Coca-Cola in 1985. Business and leadership expert John Addison writes that the company decided to address the changing soda marketplace by launching “new Coke.” Unfortunately, the rebrand failed miserably within three months, which forced the company to reintroduce the original Coca-Cola. The big takeaway: Reversing direction isn’t a sign of failure; rather, it’s evidence of a leader’s commitment to keeping the company’s health a top priority. What’s more, it shows how important it is to revisit and evaluate decisions.

Companies often use data to try a pilot or program, and if it doesn’t work, they might revisit the decision and change course. In other cases, large companies are constantly assessing data to find actionable paths. These three companies found success by making decisions based on data and stakeholder reviews:

According to Harvard Business Review, Google created a people analytics department to help the company make HR decisions using data, including deciding if managers make a difference in their teams’ performance. The department used performance reviews and employee surveys to answer this question. The company learned that a laser focus on performance did not indicate the best or happiest teams; instead, managers with strong people skills had the best-performing groups — as well as employees who were happier and stayed longer at the company.

When Amazon was still a startup, its data gatherers noticed that customers who bought a certain book or CD or DVD also were more inclined to buy another product. Perhaps these related products were by the same author or artist, or maybe the movies starred the same actors or had similar subject matter. Or, maybe they were just hot titles the customer wanted. Editors at this time had been taking on the role of “trusted adviser,” making recommendations based on purchases through emails and other human-created collateral, but the company thought that an automated tool could augment what the human editors could suggest. Ultimately, Amazon decided to use that data to create its first, rudimentary personalization tool. By presenting customers with products that other customers also bought, the company realized a significant spike in sales.

Southwest Airlines famously studied its customer data to determine the perks and upgrades that would appeal to its regular flyers. Offering those perks and upgrades resulted in a boost in ridership and fierce loyalty among its customers.These are examples of successes that relied on strong decision making, but of course, not all decisions succeed.

It means that decision making process seeks a goal. The goals are pre-set business objectives, company missions and its vision. To achieve these goals, company may face lot of obstacles in administrative, operational, marketing wings and operational domains. Such problems are sorted out through comprehensive decision making process. No decision comes as end in itself, since in may evolve new problems to solve. When one problem is solved another arises and so on, such that decision making process, as said earlier, is a continuous and dynamic. A lot of time is consumed while decisions are taken. In a management setting, decision cannot be taken abruptly. It should follow the steps such as:

Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the decision you must make. This first step is very important.The initial or first step is about the about determining the issue and identifying the opportunity ,which clearly or simply can be approached and defined at the predicted best possible angle. The opportunity and problem are the two angles that are defined separately. A problem is defined as the difference between the actual outcome and expected or desired outcome. When there is the huge gap between actual outcome and predicted outcome then the problem is big and vice versa.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is needed, the best sources of information, and how to get it. This step involves both internal and external “work.” Sometimes decision requires collecting relevant or appropriate information. This step is all about the importance of collecting relevant or appropriate information in order to make the accurate or right decision which can ensure benefits of the each and every individual in the organization. It is essential to identify what kind of information is required in the decision-making process. At the internal level, within management, some of the information is extracted through the selfassessment process and selecting the way making the decisions. In the case when the decision is intuitive and rational then rest of the information is taken from the external source or from outside links. The most appropriate information often displays to be closest coemployees, as well as the When seeking rational information from the outside, the most relevant information often appears to be the closest co-workers, economical background and other sources . For last several years, managers have been depending on the empirically based data and their own perceptions and intuitions regarding the behavior of the organization. This has helped them to get guidance for making predictions and this process is becoming increasingly complex with the ever-changing business environment.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or alternatives. You can also use your imagination and additional information to construct new alternatives. In this step, you will list all possible and desirable alternatives.The process of gathering of the information often provides various possible alternatives or paths. This step is all about how managers make use of information and their imagination to make new path or alternatives. This step is all about all desirable alternatives that a decision-making process can have. By evaluating the issue, situation and another aspect of conditions, supervisors or managers may have various options while making decisions, they can make decisions themselves, they can delegate this responsibility to other or they can form a team to make decisions. Determining the appropriate way to make decisions is based on the researches which are conducted previously and these researchers help in identifying the nature of decisions which was made under distinct condition.

Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through the use of each alternative. As you go through this difficult internal process, you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching your goal. Finally, place the alternatives in a priority order, based upon your own value system.It is necessary to evaluate whether the requirement or need in the initial (First) step is solved by using each alternative which was discussed earlier. Assessing the alternative paths which were used to achieve goals is the very complex process. But it is very important and helps managers in identifying best approach in making decisions . This process enables managers to list the alternatives in the priority order and they can have an important list of solutions of all possible problems that can occur while making the decision. This step helps management team make a team of well qualified and skilled managers who can make decisions for the organization in order to achieve ts goal.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems to be best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may very likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative you chose in Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision. For example, you might want to gather more detailed or somewhat different information or explore additional alternatives.

                                         Since decision making process follows the above sequential steps, a lot of time is spent in this process. This is the case with every decision taken to solve management and administrative problems in a business setting. Though the whole process is time consuming, the result of such process in a professional organization is magnanimous.

Conclusion

Decision-making an integral part of a manager’s work profile which is required to be done as a part of their regular work. Each day, management faces new and diverse challenges that entail thinking in a strategic manner. This makes the decision-making one of the most important company activities for the management. The decision-making is a process that is described by a series of repetitive behavioral stages taking place over a period. The management is responsible for determining the appropriate direction and actions for the organization and hence required maximum attention by the managers and executives. Strategic decisions usually fall inside the operational range of the top management. The decision-making is important because of it of the scope of its impact on the productivity of the organization and its long-term consequences. The decisions taken are connected to the overall strategy of the company. Therefore, the decisions that are taken must form a constant pattern for directing and unifying the company in an effective manner. This pattern is generally known as the strategy which is a continuous flow of decisions that are aimed at aligning or matching the organizational resources with the environmental constraints and opportunities. The rational decision making process is an effective model for making strategic decisions within an organization. Most of the managers use rationality to take decisions. In the organizations, use of rationality, the management use ell-structured and planned groups with the particular knowledge, external proficient input and information of the market, information about customers and objectives or target before making a decision. Rationality is the selection of the most sensible and appropriate alternative on the basis of the obtained knowledge for achieving the organizational goals. This type of rationality is usually interlinked with the technical rationality which makes it a structured and an analytical approach and the most used strategy in the management circle.

Executive Summary

The survival or failure of an organization is primarily based on the quality of the management ,which drives the operation of the organization. Decision-making is one of the many functions ofthe management. However, it is a basic function that has the major contribution in the triumph orfailure of the company. The manager is responsible for making decisions for moving the organization towards achieving its strategic goals. This makes the decision-making an important aspect of the planning process. Planning is an important concern of the management at it is deemed as a process that is helpful in the determination of the other key functions such as organizing, management of the human resources and control. The different techniques employed for decision-making are directly dependent on different levels of the management and the kinds of decisions that are taken at every management level. In the current fast-evolving business environment, there is a need to spend less but enough time on the decision-making process which means that decisions should not be made thoughtlessly. Each action of the management within an organization is usually a result of the decision-making process. The term ‘decide’ means coming to a resolution or a conclusion as to what the company is expected or supposed to do in the near future. Decision-making can be considered as an indispensable aspect of the manager’s life wherein innumerable decisions are made on an everyday basis for achieving the anticipated goals of a company. In the case of business undertakings, the implementation of the organizational strategies is characterized by decision-making at each step. Some of the managerial functions that are carried through with the help of the decisions are planning, staffing, organizing, directing, controlling and coordinating. Thus, decision-making forms the base of the managerial activities within an organization. This report is aimed at establishing the importance of decision-making within an organization while providing an overview of the management decision-making. The report offers an evaluation and analysis of the current and potential impact of the strategic decision-making on the functionality of the company. The method involved in the analysis of the information involves literature review of the existing literature and research on the subject. The report aims to offer an effective model for employing precise and accurate decision-making within an organization. The report identifies rational decision-making model as the most appropriate model for making decisions within an organization. This is because the rational model is based on the series of clearly defined and sequential activities. These activities identify the issues in an effective manner and come up with several courses of action. The model helps in recognizing the most appropriate course of action for the issue at hand and helps in its implementation. The report establishes that decision-making is not only important for the planning processes of the organization but also for upholding the nature of working and values of an organization.

Introduction

Management dates back to the 20th century and gas existed for hundreds of years. In its years of existence, management has been successful in transforming the social and economic content. The contribution of the management in the humanity development is evident from its omnipresence in everyone’s day-to-day activities. There is no organization that works in the absence of management and whether an organization would succeed or fail depends heavily on its managerial capability and quality. Management is the method of making the plan, organize, lead and control the work of the organization and organization members. Management is the fundamental factor which helps the organization to achieve its objectives and goals. According to various professional economists, management is the fundamental factor or key of production. Management has defined as the efforts of getting work done. In management, managers use the physical and human assets of the organization to attain the target. In the organization, management strives for achieving the goals and makes sure that organizational resources are being used effectively and within best interests of a society. Management is a nonstop process which aims to accomplish the given task. In the organization, managers perform various interrelated activities by using resource available in the organization in order to achieve organizational goals. Decision making is the primary function of management. In business, management decision making refers to selecting the best way and planning to make business successful . Various professionals categorize the management functions in four components. These components are planning, organization, planning, influence and control. Every individual in the organization collect the information and gather in order to make various decisions. The changes and lives of others in the organization are affected by these decisions. An ethical part or component is involved in every decision so it becomes very important to know whether the decision made by the manager or employee is ethical or not. The report would review the literature available on the subject of management decision-making in the coming sections. All the different aspect of the decision-making would be discussed in detail. The importance of the decision-making for the top management would be evaluated through the research. The literature review would offer an in-depth assessment of the rational decision-making model. The rational model is an iterative behavioral process which is required to be recycled again for each decision-making process. The recycling is necessary as each decision leads to actions. The most important aspect of the decision-making process is that it allows executives to address each issue or opportunity with a fresh outlook. Therefore, the executives do not have to approach the issues with a prejudiced attitude. All the decisions are based on the deep evaluation of the conditions and situation which makes it highly effective.Based on the research work, a conclusion is formed which sums up the entire business report and magnifies the highlights of the report.

Analysis

DECISION MAKING PROCESS IN MANAGEMENT

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach increases the chances that you will choose the most satisfying alternative possible.

Decision-making is an integral part of modern management. Essentially, Rational or sound decision making is taken as primary function of management. Every manager takes hundreds and hundreds of decisions subconsciously or consciously making it as the key component in the role of a manager. Decisions play important roles as they determine both organizational and managerial activities. A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals. Decision making process is continuous and indispensable component of managing any organization or business activities. Decisions are made to sustain the activities of all business activities and organizational functioning.

Decisions are made at every level of management to ensure organizational or business goals are achieved. Further, the decisions make up one of core functional values that every organization adopts and implements to ensure optimum growth and drivability in terms of services and or products offered.

As such, decision making process can be further exemplified in the backdrop of the following definitions.

Definition of Decision Making

According to the Oxford Advanced Learner’s Dictionary the term decision making means - the process of deciding about something important, especially in a group of people or in an organization.

Trewatha & Newport defines decision making process as follows:, “Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem”.

Examples of Decision-Making Processes Successes

In a sense, a company’s entire history is a reflection of making decisions. Some of the top companies in the world have turned a failure into a success by focusing on the last crucial step in all decision-making processes: evaluating the decision after the fact.

One example of this is Coca-Cola in 1985. Business and leadership expert John Addison writes that the company decided to address the changing soda marketplace by launching “new Coke.” Unfortunately, the rebrand failed miserably within three months, which forced the company to reintroduce the original Coca-Cola. The big takeaway: Reversing direction isn’t a sign of failure; rather, it’s evidence of a leader’s commitment to keeping the company’s health a top priority. What’s more, it shows how important it is to revisit and evaluate decisions.

Companies often use data to try a pilot or program, and if it doesn’t work, they might revisit the decision and change course. In other cases, large companies are constantly assessing data to find actionable paths. These three companies found success by making decisions based on data and stakeholder reviews:

According to Harvard Business Review, Google created a people analytics department to help the company make HR decisions using data, including deciding if managers make a difference in their teams’ performance. The department used performance reviews and employee surveys to answer this question. The company learned that a laser focus on performance did not indicate the best or happiest teams; instead, managers with strong people skills had the best-performing groups — as well as employees who were happier and stayed longer at the company.

When Amazon was still a startup, its data gatherers noticed that customers who bought a certain book or CD or DVD also were more inclined to buy another product. Perhaps these related products were by the same author or artist, or maybe the movies starred the same actors or had similar subject matter. Or, maybe they were just hot titles the customer wanted. Editors at this time had been taking on the role of “trusted adviser,” making recommendations based on purchases through emails and other human-created collateral, but the company thought that an automated tool could augment what the human editors could suggest. Ultimately, Amazon decided to use that data to create its first, rudimentary personalization tool. By presenting customers with products that other customers also bought, the company realized a significant spike in sales.

Southwest Airlines famously studied its customer data to determine the perks and upgrades that would appeal to its regular flyers. Offering those perks and upgrades resulted in a boost in ridership and fierce loyalty among its customers.These are examples of successes that relied on strong decision making, but of course, not all decisions succeed.

It means that decision making process seeks a goal. The goals are pre-set business objectives, company missions and its vision. To achieve these goals, company may face lot of obstacles in administrative, operational, marketing wings and operational domains. Such problems are sorted out through comprehensive decision making process. No decision comes as end in itself, since in may evolve new problems to solve. When one problem is solved another arises and so on, such that decision making process, as said earlier, is a continuous and dynamic. A lot of time is consumed while decisions are taken. In a management setting, decision cannot be taken abruptly. It should follow the steps such as:

Step 1: Identify the decision

You realize that you need to make a decision. Try to clearly define the nature of the decision you must make. This first step is very important.The initial or first step is about the about determining the issue and identifying the opportunity ,which clearly or simply can be approached and defined at the predicted best possible angle. The opportunity and problem are the two angles that are defined separately. A problem is defined as the difference between the actual outcome and expected or desired outcome. When there is the huge gap between actual outcome and predicted outcome then the problem is big and vice versa.

Step 2: Gather relevant information

Collect some pertinent information before you make your decision: what information is needed, the best sources of information, and how to get it. This step involves both internal and external “work.” Sometimes decision requires collecting relevant or appropriate information. This step is all about the importance of collecting relevant or appropriate information in order to make the accurate or right decision which can ensure benefits of the each and every individual in the organization. It is essential to identify what kind of information is required in the decision-making process. At the internal level, within management, some of the information is extracted through the selfassessment process and selecting the way making the decisions. In the case when the decision is intuitive and rational then rest of the information is taken from the external source or from outside links. The most appropriate information often displays to be closest coemployees, as well as the When seeking rational information from the outside, the most relevant information often appears to be the closest co-workers, economical background and other sources . For last several years, managers have been depending on the empirically based data and their own perceptions and intuitions regarding the behavior of the organization. This has helped them to get guidance for making predictions and this process is becoming increasingly complex with the ever-changing business environment.

Step 3: Identify the alternatives

As you collect information, you will probably identify several possible paths of action, or alternatives. You can also use your imagination and additional information to construct new alternatives. In this step, you will list all possible and desirable alternatives.The process of gathering of the information often provides various possible alternatives or paths. This step is all about how managers make use of information and their imagination to make new path or alternatives. This step is all about all desirable alternatives that a decision-making process can have. By evaluating the issue, situation and another aspect of conditions, supervisors or managers may have various options while making decisions, they can make decisions themselves, they can delegate this responsibility to other or they can form a team to make decisions. Determining the appropriate way to make decisions is based on the researches which are conducted previously and these researchers help in identifying the nature of decisions which was made under distinct condition.

Step 4: Weigh the evidence

Draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through the use of each alternative. As you go through this difficult internal process, you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching your goal. Finally, place the alternatives in a priority order, based upon your own value system.It is necessary to evaluate whether the requirement or need in the initial (First) step is solved by using each alternative which was discussed earlier. Assessing the alternative paths which were used to achieve goals is the very complex process. But it is very important and helps managers in identifying best approach in making decisions . This process enables managers to list the alternatives in the priority order and they can have an important list of solutions of all possible problems that can occur while making the decision. This step helps management team make a team of well qualified and skilled managers who can make decisions for the organization in order to achieve ts goal.

Step 5: Choose among alternatives

Once you have weighed all the evidence, you are ready to select the alternative that seems to be best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may very likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4.

Step 6: Take action

You’re now ready to take some positive action by beginning to implement the alternative you chose in Step 5.

Step 7: Review your decision & its consequences

In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision. For example, you might want to gather more detailed or somewhat different information or explore additional alternatives.

                                         Since decision making process follows the above sequential steps, a lot of time is spent in this process. This is the case with every decision taken to solve management and administrative problems in a business setting. Though the whole process is time consuming, the result of such process in a professional organization is magnanimous.

Conclusion

Decision-making an integral part of a manager’s work profile which is required to be done as a part of their regular work. Each day, management faces new and diverse challenges that entail thinking in a strategic manner. This makes the decision-making one of the most important company activities for the management. The decision-making is a process that is described by a series of repetitive behavioral stages taking place over a period. The management is responsible for determining the appropriate direction and actions for the organization and hence required maximum attention by the managers and executives. Strategic decisions usually fall inside the operational range of the top management. The decision-making is important because of it of the scope of its impact on the productivity of the organization and its long-term consequences. The decisions taken are connected to the overall strategy of the company. Therefore, the decisions that are taken must form a constant pattern for directing and unifying the company in an effective manner. This pattern is generally known as the strategy which is a continuous flow of decisions that are aimed at aligning or matching the organizational resources with the environmental constraints and opportunities. The rational decision making process is an effective model for making strategic decisions within an organization. Most of the managers use rationality to take decisions. In the organizations, use of rationality, the management use ell-structured and planned groups with the particular knowledge, external proficient input and information of the market, information about customers and objectives or target before making a decision. Rationality is the selection of the most sensible and appropriate alternative on the basis of the obtained knowledge for achieving the organizational goals. This type of rationality is usually interlinked with the technical rationality which makes it a structured and an analytical approach and the most used strategy in the management circle.