Rational Decision Making Model: Steps and Application

Introduction to Decision Making

Napoleon once noted that "Nothing is more difficult, and therefore more precious, than to be able to decide." This observation points to the fact that in our daily operations — at home, at school, or in the office — we are constantly faced with situations that require decisions, and at times crucial ones. It is an everyday experience that several judgments are emotional and are made without deep thought. They come at the spur of the moment and may be dictated by the conditions present at that time — conditions that may not last as long as the judgment that has already been made (Business Analysis Made Easy, 2010). It is in such cases that decision making models come into play. These models assist in ensuring that sound judgments are reached regardless of the situation.

Every person would like to make the right decision, since the outcome will affect them or their business directly. From statistics, it is apparent that the majority of businesses that open do fail, and the reasons behind such failure are most often related to poor or wrong decision making. Decision making is therefore a process that involves selecting one alternative from among several feasible ones, committing to it, and implementing it. The decision maker or makers must have sufficient reasons for rejecting all other alternatives and settling on the one they choose.

Overview of Decision Making Models

There are various decision making models that have been researched and advanced in academic literature. These include, but are not restricted to, the decision matrix, multivariable decision making model, Myers-Briggs Type Indicator (MBTI) model, Vroom-Jago decision model, seven-step decision making model, intuitive decision making model, recognition-primed decision making model, the ultimate decision making model, and the Kepner-Tregoe decision making model (Decision-making-confidence.com, 2010), among many others.

For the purpose and focus of this paper, the rational decision making model will form the basis of discussion. It is important to note, however, that these models do not operate in mutual exclusivity. They instead interlace and augment one another depending on the peculiarities of the situation that an individual or organization faces. The model selected here — the rational decision making model — is applied in the context of a brands manager at a pharmaceutical firm aiming to improve the company's drug packaging. The discussion draws substantially from The Happy Manager (2010).

The Rational Decision Making Model

The rational decision making model involves a series of logical, sequential steps that guide the decision maker toward a well-reasoned choice. Each step builds on the last, ensuring that the final decision is grounded in evidence, analysis, and deliberate evaluation of available alternatives.

Applying the Model: A Pharmaceutical Case

Step A: Identifying a Problem or Opportunity

This is the most significant part of the decision making process. A clear comprehension of the problem or opportunity enables the decision maker to move toward a sound conclusion; without it, any decision made will inevitably be flawed. For instance, consider a scenario in which a company's packaging for pain relievers has been imitated by a competitor attempting to sell counterfeit drugs in the same market without customers' knowledge. This is a real problem that demands a critical decision making process in order to determine how to act and how to retain market share.

Step B: Gathering Information

This step involves identifying what information is significant to the decision and what is not — determining what one must know before making a particular choice. As a brands manager, it is necessary to understand what the counterfeiters are exploiting, what elements of the packaging they are copying, and how they are able to imitate the products. It is also important to determine when the imitation began and the extent to which the counterfeit products have penetrated the market. At this stage, formal research may need to be conducted.

Step C: Analyzing the Situation

Here, the various courses of action identified in the previous step are examined in detail. This is where analysis of the alternatives begins, using a logical approach to evaluate each one. SWOT analysis is particularly useful at this stage. Well-structured questionnaires may also be employed to achieve a broader and deeper scrutiny of the problem or situation.

Step D: Developing Options

At this stage, several probable solutions to the problem are generated. Creativity is essential here, as it helps narrow the field to the most viable decision options. As the brands manager, potential options might include repackaging, re-branding, re-labeling, shifting market focus, or changing the product itself, among others. Creativity at this stage helps eliminate options that are far from an effective solution and focuses attention on those most likely to address the problem.

Step E: Evaluating Alternatives

Once the alternatives have been narrowed down, the most probable options are evaluated further to test their acceptability in the given situation, their likelihood of producing the desired results, and their feasibility under the specific circumstances. In essence, this involves selecting the option that will most efficiently help achieve the stated objectives. In the counterfeit packaging case, options such as repackaging, re-branding, re-labeling, shifting market focus, and product changes are all examined. For example, changing the product itself would not be the best option, given that the company deals in several products beyond the one targeted by the counterfeit scheme.

Step F: Selecting a Preferred Alternative

At this stage, the evaluation process should lead to the identification of the two or three highest-ranking options from the previous step. When settling on an alternative to implement, it is advisable to consider potential future undesirable outcomes or consequences and to explore the risks associated with each option. This step demands the most critical thinking and the most time, as the decision reached will be final. Once all risks have been weighed across the top alternatives, a final choice can be made. In the pharmaceutical case presented here, repackaging emerges as the most feasible option, as it can be made highly effective when paired with an appropriate advertising and awareness campaign.

Step G: Acting on the Decision

With a decision in hand, it is now essential to chart out an implementation plan. Resources are allocated at this stage and commitment to making the selected alternative succeed is paramount. In a re-branding campaign, investment in advertising through television, print media, the internet, and radio would be of critical importance. This is the stage that gives the decision tangible value. A follow-up plan is an essential component of implementation, ensuring that the chosen alternative remains on course over time.

Conclusion

Decision making is an unavoidable part of personal and organizational life. The rational decision making model offers a disciplined, step-by-step framework that helps ensure decisions are well-founded, comprehensively analyzed, and carefully implemented. Applied to the pharmaceutical brand manager scenario — where counterfeit packaging threatens market integrity — the model demonstrates how structured thinking can translate a complex problem into a clear, actionable course of action. While no single model is sufficient on its own, and while stakeholder participation and adequate deliberation time remain essential, the rational model provides a strong foundation for sound organizational decision making.

References

Business Analysis Made Easy. (2010). Decision making models. Retrieved May 14, 2010, from http://www.business-analysis-made-easy.com/Decision-Making-Models.html

Decision-making-confidence.com. (2010). Rational decision making models. Retrieved May 15, 2010, from http://www.decision-making-confidence.com/rational-decision-making-models.html

The Happy Manager. (2010). Rational decision making model. Retrieved May 15, 2010, from www.the-happy-manager.com/rational-decision-making-model.html