An Overview of the Four Different Decision-making Models.
Four Different Decision-making Models: In this article, we’ll explore some of the most prevalent decision-making models, including their pros and cons to see which could be the correct approach for your management style.
However, undoubtedly useful in certain circumstances, the application of such research highly depends on the kind of decisions being made, especially in the business world.
There are clear limits and, to date, most decision making research applies to one type of a decision, and it’s not the type that’s most challenging for managers.
This decision-making model focuses on how decision-makers attempt to rationalize their choices after they have been made and try to justify their decisions.
This model has been developed by Per Soelberg. He made an observation regarding the job choice processes of graduating business students and noted that, in many cases, the students identified implicit favorites very early in the recruiting and choice process.
However, students continued their search for additional alternatives and quickly selected the best alternative. The process is designed to justify, through the guise of scientific rigor, a decision that has already been made intuitively.
By this means, the individual becomes convinced that he or she is acting rationally and taking a logical, reasoned decision on an important topic.
This article will break down four styles of decision-making, when to apply them, and when it’s time to try a new approach.
Analytic Decision-making Model
Analytic decision-makers examine much information before taking action. For example, analytic leaders rely on direct observation, data, and facts to support their decisions.
However, unlike directive decision-makers, an analytic decision-maker will seek information and advice from others to confirm or deny their own knowledge.
These decision-makers have a high tolerance for ambiguity and are very adaptable, but they like to control most aspects of the decision process.
This style is a well-rounded approach to decision-making but can be time-consuming.
Analytic decisions are helpful in situations where there may be more than one right answer. Use this style of decision-making to solve problems where the cause-and-effect relationship is discoverable but not immediately apparent.
Paired Comparison Decision-making Model
Understanding priority is an important part of making good decisions. Even if you don’t think about it consciously at the time, it makes sense
You are making your choices in most cases based on the underlying priorities that you have in mind.
Of course, the priority in business is often to make money, but that isn’t always the case. Or, at least, that isn’t always the guiding light for the decisions you need to make.
The process of using this model involves first creating a table that is going to lay out all of your various options.
Every option you have at hand with regard to the decision that needs to be made should be listed in the chart, both across the top and down the side. This is where the ‘paired analysis’ comes into the picture.
You are going to compare one option against another and determine a winner. Repeat this process until all options have been compared against all other options.
Behavioral Decision-making Model
Behavioral decision-makers try to make sure everyone works well together. Like the conceptual style, behavioral decision-making is group-oriented
However, rather than brainstorming potential solutions, the group is given the options available to them. From there, the group discusses the pros and cons of each choice.
This style of decision-making considers many different outlooks and opinions in the process.