List and discuss the eight steps in the decision-making process.
Decision making entails the selection of a course of action among various alternatives. The choice made could either be rational or irrational and is based on the assumptions made, available information, and past experiences.
Answer and Explanation:
The decision-making process has eight steps: definition of the problem, gathering information, evaluating alternatives, analysis of different choices, selection of criteria, selecting the best alternative, execution, and evaluation.
Problem identification aims to identify the problem that needs to be solved, the current condition, and the desired conditions. The second step entails gathering information regarding the stakeholders and factors involved in the problem. Thirdly, the decision-maker should identify different alternatives to solving the problem. Fourthly, an analysis of the choices is performed to determine the various alternatives' benefits and disadvantages. Fifth, the criteria for determining if an alternative achieves the goals or solves the problem is chosen. Sixth, the best approach and option are selected. The seventh step entails the execution of the decision where actions are undertaken. Lastly, evaluating the success of the decision chosen is performed and communicated to the relevant stakeholders.
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fromChapter 9 / Lesson 1
Understand the rational decision making model. Explore the steps in the rational decision making process with examples, and discover its purpose in an organization.