Advantages and Disadvantages of Rational Decision Making Approach - Coursework Example

Advantages and disadvantages of rational decision making approach xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Course xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Instructor xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Date Advantages and disadvantages of rational decision making approach With increased competition and technological advancement, organizational management is becoming too dynamic and complex. Organizations in the age of competitions require adopting rational thinking so as to have rational decision making (Dwyer and Minnegal 2006). Rational decision making model is defined as an approach designed to understand organizational decision making processes. Dwyer and Minnegal (2006) maintain that, this approach is more idealistic in the sense that the approach does not always capture the pattern in decision making of the practicing manager but what precisely need to be constituted in the decision making frontier. The approach largely presumes that managers who are key organizational decision makers are rational and hence they are expected that they should engage in steps that will ensure their organizational goals are met. According to Dwyer and Minnegal (2006), the rational decision making approach prescribes a more sequential decision making process with a flow that follows; problem or opportunity solution, problem or opportunity definition, establishment of alternatives, information gathering, evaluation of the obtained alternatives, selection of an alternative, implementation of the selected alternative and finally, feedback through evaluation of the effectiveness of the desired alternative. This paper aims at discussing the advantages and disadvantages of rational decision making approach. Hoenig (2006) asserts that, ccompanies’ gain a lot when they are engaged in implementing the rational decision making approaches. Based on the advantages of rational decision making approach, this approach is normally based on scientifically obtained data that highly allow informed decision to be made. According to Robbins and Timothy (2007), the scientific data reduces chances of assumption, errors, distortion, subjectivity, guesswork as well as all main causes for both inequitable and poor judgments. It is quite evident that knowledge and information from the rational decision making approach promotes consistency and high quality of decision which in turn reduces the uncertainty and risks that are associated with decisions (Hoenig 2006). The rational approach further infuses the process of decision making with logic, discipline and consistency. The fact that it is also known as the step by step approach, its systematic approach highly allows decision makers to come up with optimal decision that are important in meeting organizational objectives. According to Hoenig (2006), the approach addresses complex issues within an organization by way of breaking them down into simpler steps through examining all aspects of the problem and all the various solution before making the optimal decision (Vriend 1996). Vecchio (2006) asserts that, rational decision making approach is considered to be the best model in both identifying and verifying the problem. It is quite evident that many organizational decision making process fail due to the fact that the exact problem is not properly identified. The approach involved skilled professionals making it and therefore it is considered as the best model for organization to verify problem statement. After the verification of the problem statement, the approach assists managers to develop best solution to the identified problem. Here, the rational decision making approach analyze the different solution to the identified problem within the organization. Vecchio (2006) maintain that, the approach allows the analysis of both the advantages and disadvantages of the different alternative identified thus increasing the chance of obtaining the right solution. The rational decision making model largely involves people with good leadership and decision making skills and this therefore guarantees positive performance of the organization. Vecchio (2006) maintain that, the rational decision making approach is involved in reducing the complexity in the decision making processes. The model is considered to be streamlined allowing the users to track the decision making process (Monahan 2000). Like many other decision making approaches, there are various disadvantages associated with the rational decision making model. According to Secchi (2010), the rational decision making approach require more careful consideration as well as deliberation of data collected. This deliberation and consideration of data is time consuming making this approach unsuitable for making quick decisions. In the age of increased competition and fast paced changes within organizations, seizing opportunities and making quick decision play a very critical role in organizational success as well as customer satisfaction (Secchi 2010). Therefore, rational decision making model may not be appropriate in recent time that requires fast changes and quick decision to be made. In addition, delay in the making as well as implementation of decisions may result in dilution of the benefit connected to the named alternative. Therefore, the model is best suited in making long term decisions as opposed to short term level operational decisions within an organization. Rational decision making is considered to be a more conservative approach (Patokorpi 2008). It is evident that most times, organizations are successful when its managers follow their intuition in seizing opportunities. Similarly, success may further depend on being the pioneer in the field of decision making which may result to acceptance of new products. Nevertheless, analysis of data available may hinder the success of the organization as it creates unavailability of past information of new products causing the rational decision makers to seek for more convectional and secure options (Patokorpi 2008). Champoux (2001) maintain that, the rational decision making approach is more informed and structured. Due to this, managers using this approach are normally considered to be insensitive autocratic leaders. Clearly, the key reason for rationality is to ensure profit maximization and therefore, interpersonal relation in this approach has no definition in what constitutes rationality. Champoux (2001) maintain that, managers under this approach are forced to treat human relationships as secondary importance. It is quite evident that over reliance on the profit maximization with limited regard to human values erodes a company of its logical resilience and capital which can be harmful to its performance as well as its success. Vecchio (2006) asserts that, the outcome of the decision made under the rational decision making model became more apparent in the long run and therefore there are no tangible and immediate returns of the decision made. Insensitivity to human relationships causes negative perceptions especially on the managerial sector. It is further evident that, the rational decision making process is considered to be a very costly process (Connors 2001). There are numerous alternatives used in pinpointing the optimal solution and therefore the cost involved is very high. Each verification process normally involve using expansive resources, business methodologies and skills therefore making the rational decision making approach more expensive as compared to other know traditional decision making processes (Robbins and Timothy 2007). Champoux (2001) maintain that, while the rational decision making approach strives to do away with uncertainty, assumptions and subjectivity in the decision making process, the approach its self has numerous assumption in it. The model assumes that the manager who is here the decision maker has more accurate knowledge and information (Connors 2001). This is not always the case as accuracy, integrity, quantity and quality become not up to standard. The over reliance of scientific data in generating most optimal choice work perfectly in theory, but in practicality humans have limits in gathering, understanding and processing all the data needed so that to achieve an optimum decision. It is evident that such notable defects in information significantly translate to major defect in the decision. The model further assumes that conditions obtained are stable. However, in the real business environment conditions need to remain in a constant state of flux and therefore information required to make the optimal decision either to remain incomplete or with time keep on changing forcing managers to improvise new mechanisms (Robbins and Timothy 2007). In conclusion, decision making is considered to be one of the important activities in which managers engaged in on daily basis. The success of any organization highly depends on the various decisions undertaken. From the above cons and pros of rational decision making approach, the approach characterizes managers as completely rational involving the search of information so as to make optimal decision. Further, the intrinsic imperfections of managers as well as the organizational and social systems in which they are imbedded, impose various limitations on managers’ ability to process the information needed to make organizational complex decisions. Finally, how organization make their decisions highly depend on their culture, education and experience. the advantages and disadvantaged of the rational decision making approach define the approach as a facilitating tool that assists in decision making as well as supplementing the accessible system in certain situations. References Champoux, J. E., 2001, Management context of nonprofit organizations in the new millennium: Diversity, quality, technology, global, environment, and ethics. In T. D. Connors (ed.), The nonprofit handbook: Management (pp. 46-64). New York: John Wiley & Sons, Inc. Connors, T., 2001, The nonprofit handbook: Management. New York: John Wiley & Sons, Inc. Dwyer, P. & Minnegal, M, 2006, ‘The Good, the Bad and the Ugly: Risk, Uncertainty and Decision-Making by Victorian Fishers’, Journal of Political Ecology, vol. 13. Hoenig, C, 2006 "Developing Exceptional Problem-solving Skills". In Business The Ultimate Resource, 2nd Ed, Basic Books (A Member of Perseus Books Group). Monahan, G., 2000, Management Decision Making. Cambridge: Cambridge University Press. pp. 33–40 Patokorpi, E., 2008. Simon's paradox: Bounded rationality and the computer metaphor of the mind. Human Systems Management, 27 (285-294). Robbins, P. &Timothy A., 2007. Organizational Behavior (12th Ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall. Secchi, D. 2010. Extendable Rationality. Understanding Decision Making in Organizations. New York: Springer. Vecchio, R. 2006. Organizational Behavior: Core Concepts. 6th Ed, Thomson South- Western Vriend, J., 1996, “Rational Behavior and Economic Theory.” Journal of Economic Behavior & Organization, 29(March): 263 - 285. Read More