6 Steps Decision Making Model

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The Six-Step Rational Decision-Making Model 1. Define the problem. 2. Identify decision criteria 3. Weight the criteria 4. Generate alternatives 5. Rate each alternative on each criterion 6. Compute the optimal decision Part 1 - Introduction Identify decision criteria Once a decision maker has defined the problem, he or she needs to identify the decision criteria that will be important in solving the problem. In this step, the decision maker is determining what’s relevant in making the decision. This step brings the decision maker’s interests, values, and personal preferences into the process. Identifying criteria is important because what one person thinks is relevant, another may not. Also keep in mind that any factors not identified in this step are considered as irrelevant to the decision maker. Weight the criteria The decision-maker weights the previously identified criteria in order to give them correct priority in the decision. Generate alternatives The decision maker generates possible alternatives that could succeed in resolving the problem. No attempt is made in this step to appraise these alternatives, only to list them. Rate each alternative on each criterion The decision maker must critically analyze and evaluate each one. The strengths and weakness of each alternative become evident as they compared with the criteria and weights established in second and third steps. Compute the optimal decision Evaluating each alternative against the weighted criteria and selecting the alternative with the highest total score. Assumptions of Model 1. Problem clarity. (The decision maker is assumed to have complete information regarding the decision situation.) 2. Known options (Identify all the relevant criteria and can list all the viable alternatives. The decision maker is aware of all the possible consequences of each alternative.) 3. Clear preference (The

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