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What is a decision model or decision-making model?
Decisions. Decisions. Decisions.
Our lives are all about making decisions. Big and small.
Some decisions are personal. Like what clothes to wear. Or what to have for lunch.
But some decisions affect other people. A manager’s decision, for instance, can have an impact on other employees and their lives.
It can also change the course of a company.
Decision-making models or decision models are structures created to guide people to make ethical and rational decisions. When faced with tough choices, individuals can use these tools to make the best decisions.
Decision-making models work efficiently and can help save individuals and organizations a lot of time. Let’s look at some useful decision-making models.
Ethical Decision-Making Model
The most important decision-making model is based on ethics and mutual respect. The ethical decision-making model advocates a process of evaluating and choosing among the best possible options in an ethical manner.
Decisions taken through the ethical decision-making model should be consistent with an organization’s or individual’s core ethical principles. The goal is to eliminate unethical or unjust options and select the best ethical alternatives.
The first step is to define the ethical issues. Next in this decision-making model is identifying the stakeholders. They will help in understanding the consequences of the decision you are about to make. At its very core, this decision-making model is about doing the right thing.
Consumer Decision-Making Model
Another important tool is the consumer decision-making model. This decision model is used to make decisions based on various market, economic, social, political, cultural, and psychological factors.
The consumer decision-making model is important to make informed decisions about purchases. It involves finer problem-solving and decision-making skills such as comparing, quantifying, judging, testing, finding supporting evidence, and reviewing.
Classical Model Of Decision-Making
The classical model of decision-making, also known as the ‘rational model’, is the first step an individual takes towards making a decision to solve a problem. It is the first response of the brain to check the rationale behind the decision. The classical model of decision-making involves the following steps that ensure the decisions are not hasty or half baked.
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Start with defining the problem to achieve clarity
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Secondly, identify the criteria you will use to rate all the possible outcomes
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Decide the significance of each factor in the process of making a decision
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Generate a list of the best possible alternatives to make smart decisions
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After evaluating all options, move towards determining the best possible decision
Harappa Education’s Making Decisions course helps you learn the fine art of decision-making. Use decision-making models such as the ethical decision-making model, the consumer decision-making model, and the classical model of decision-making to help you make smart choices for success.
A decision process looks at a problem from all perspectives and weighs the pros and cons before making a choice. Using the perfect decision-making model is the first step to meeting your goals. Sign up for the Making Decisions course and start your learning journey.
Explore topics such as Decision Making, Decision Making Examples, Decision Making Process, Types of Decision Making & Strategic Decision Making from our Harappa Diaries section and make smart decisions.
