As a decision-making expert with a background in behavioral economics, I'm often asked about the rational model of decision making. This model is a structured approach that aims to make decisions based on rational thought and logical analysis rather than intuition or emotional responses. It is a systematic process that helps individuals and organizations to make decisions that are likely to achieve their objectives effectively and efficiently.

The rational model of decision making is particularly useful in complex situations where there are multiple alternatives and a variety of outcomes that can result from each alternative. It involves a series of steps that guide the decision maker through the process from problem identification to the selection of the best course of action.

Here are the key steps in the rational model:


1. Define the Problem: The first step is to clearly define the problem. This involves understanding the issue at hand and what needs to be resolved. It's important to be as specific as possible to ensure that the problem is well understood.


2. Identify Objectives: Once the problem is defined, the next step is to identify the objectives that need to be achieved. These objectives should be clear, measurable, and directly related to the problem.


3. Develop Alternatives: In this step, the decision maker generates a list of possible solutions or alternatives to address the problem. Creativity can be valuable here, as it helps to ensure a wide range of options are considered.


4. Evaluate Alternatives: Each alternative is then evaluated against the objectives identified earlier. This involves assessing the pros and cons of each option and determining how well each one meets the objectives.


5. Select the Best Alternative: After evaluating all the alternatives, the decision maker selects the one that best meets the objectives. This is often the option that offers the greatest benefits relative to the costs and risks.


6. Implement the Decision: The chosen alternative is then put into action. This involves developing a plan to implement the decision and ensuring that all necessary resources are available.

7.
Review the Decision: Finally, it's important to review the decision after it has been implemented to determine its effectiveness. This can provide valuable feedback for future decision making.

The rational model is based on the assumption that decision makers are logical, they have all the necessary information, and they can accurately predict the outcomes of their decisions. However, in reality, decision makers may not have all the information, and they may not be perfectly rational. Despite these limitations, the rational model provides a useful framework for making decisions in a structured and thoughtful manner.

It's also worth noting that the rational model is often contrasted with intuitive decision making, where decisions are made based on instinct, experience, and a more immediate response to the situation. While intuitive decision making can be effective in certain contexts, the rational model offers a more thorough and analytical approach.

In conclusion, the rational model of decision making is a systematic and analytical approach to making decisions. It involves defining the problem, identifying objectives, developing and evaluating alternatives, selecting the best alternative, implementing the decision, and reviewing its effectiveness. While it has its limitations, it provides a valuable framework for making decisions in a logical and structured way.

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The opposite of intuitive decision making is rational decision making, which is when individuals use analysis, facts and a step-by-step process to come to a decision. The decision maker needs to optimize, or determine the best solution for the problem, by using a six step model. The steps are: Define the problem.read more >>