Describe the steps in rational decision making
1.Identify the problem: The first step in rational decision making is identifying the problem for which the decision is to be made.
2.Clarity of the problem: After identification of problem, there must be exact clarity of the problem so that solution can be found out accordingly.
3. Generation of various alternatives: After that, various alternatives need to be generated which would be helpful in sorting out the problem.
4. Evaluation of alternatives: The next step is to evaluate the alternatives and find out the one which seems to be the best for sorting out the problem and the other alternatives need to be eliminated.
5. Applying the selected alternative: The last step is to apply the selected alternative into the action.
Thus these are the steps which are included in a rational decision making process.
Define System 1 and System 2 thinking. Explain how they are relevant to decision-making. Describe the three forms of overconfidence, and give examples of how overconfidence has caused some bad historic decisions. Explain rational decision-making, and briefly discuss the six steps needed to achieve rational decision-making
In Week 6, discuss how the differences in rational decision-making. Is it truly possible to be rational during the decision-making process? How do you improve your personal decision-making abilities? Use research to support your analysis. Initial Post Length: minimum of 350 words
Are rational choice theory and decision theory good normative theories of decision making? That is are they useful tools for making better decisions? What kinds of problems can we solve with decision theory? What kinds of problems can it not help us solve? Give examples and explain your reasoning
Discuss the economic concept of opportunity cost in the context of rational decision making. Provide a separate discussion of rational decision making among consumers and then a second separate discussion for producers. Use graphs and/or charts to illustrate your answer.
Discussion #1 Describe how decision biases may impede effective decision making. What steps would you take to avoid them? Discussion #2 What is the difference between strategic management and operations management? What steps whould you take to ensure their alignment?
Explain rational and non-rational decision-making concepts and provide a business example where you would justify using a rational and non-rational concept.
Psychological theories argue that mental pathologies inhibit decision-makers from making rational decisions. That is, the means by which individuals filter information will havea direct impact on the decision-making process. Therefore, according to psychological theories, actors are not rational decision-makers. After reading the module notes and the chapter, decide whether you agree or disagree with the psychological theories or the rational actor model.
In the classic or rational model of decision making, which assumption(s) is/are made: That there are several equally good options That there is clarity on the nature of the decision That there are time limitations That full information on all options can be obtained
Both neoclassical and behavioral economics believe that people are mostly rational in both their decision making and their actions. True or False
“Because managers have so many powerful decision-making tools, they should be able to make more rational decisions.” Do you agree or disagree with this statement? Why? What are some of the decision-making tools that managers have?