Rational model in decision making makes use of data that is scientifically obtained and allows the decision maker to end up with an informed decision. Informed decision making is critical in an organization to avoid assumptions, errors, distortion, guesswork, and any other element that can lead to inequitable and poor judgment. The main aim is to ensure that structured and measured idea is introduced in decision making. In this paper, the main elements that have been analyzed include decision making, attribution theory, personal experience of inaccurate judgment and creative decision making.
When an individual chooses among alternative courses of action, they are said to have made a decision. In most cases, it has been argued that management is all about making the decision even though most decisions made by the managers end up failing (Ireland & Miller, 2004). Rational decision making is an important part of increasing effectiveness in the process of making a decision.
The rational decision-making model provides a range of steps that are considered by decision makers whenever they intend to increase the quality of outcome. The best choice is assured when the decision maker follows the steps that have been highlighted in rational decision making. The steps involve identification of the problem, identification of the criteria for decision, weighing the decision criteria, determining the alternatives, evaluation of the options, selection of the course of action, implementation and finally monitoring the outcome (Conlin, 2007).
The use of rational decision making model is important to an organization in the sense that it allows the decision maker to find all the alternatives to the problem. The existence of all the other options limits the chances that the decision maker may fail regarding the results of the decision. Rational decision making is well thought, and all the elements that related to the problem are analyzed before the final decision is arrived at (Ireland & Miller, 2004).
The theory was developed by Simon (1947), and it states that people are limited to the information that is available personal cognitive limitations, and the finite amount of time that exists for one to make a decision. The three categories of limitation make it difficult for a decision maker. The decision that is made in the organization may fail to meet the desired outcome due to the limited information that the decision maker has based on the limited form of rationality in humans (Gigerenzer & Selten, 2002).
In an organization, instances exist when the decision maker may fail to act rationally. When an individual decides a way that is illogical, it means that they operate under a cognitive bias. The organization is set up in such a way that the decision maker may end up feeling pressured to make use of a particular data that is in line with their desires or that of their superiors. Such action may end up being wrong for the organization. Such an act is the opposite of a measured and clear judgment (Gigerenzer & Selten, 2002).
The conjunction fallacy is a belief that specific conditions are likely to occur than general conditions. It occurs when the decision maker tends to think that an alternative is independent yet in reality, it is a member of a certain set. In an organization the decision maker may be given the information that one feels are most probable hence leading to a wrong decision (Kahneman, 2013).
In normal life, individual find means of explaining certain events. It is concerned with how perceivers use information available to arrive at an explanation for the occurrence of a given event. The consensus behind the theory is that people tend to see cause and effect relationship even when in reality such a relationship does not exist (Kahneman, 2013).
Effects of Perception
The mental organization of the world around an individual is what they perceive. The perception leads an individual to attach an event to certain information that they have about the environment. When a child makes noise, the perception of the teacher over the child’s parent will lead the teacher into attributing the child’s noise to the parent.
An individual will attribute the cause and effect based on what they can remember (memory is an element of perception). When an individual recalls the end of items in a list, they are said to have recency effect and when the first items are recalled than middle items it is known as primacy effect. When an individual tends not to notice or to forget stimulus that leads to the discomfort they are said to have selective perception. A child will forget things taught in a subject when they dislike the subject. When an individual is concerned with stimuli of lesser or greater value under similar conditions its said that contrast effect influences them. The stereotype is when an individual attaches certain behavior to a certain general group without facts to mean the existence of such a relationship.
Consistency, Consensus, Distinctiveness
According to Kelley (1978), people may behave in the same way under a similar condition or situation. When Garry goes out with Ken and drinks every time, they are together if Ken drinks it will be said that his behavior is high in consensus. On the other hand, distinctiveness is concerned with the extent to which an individual behaves the same way when faced with similar situation. When Garry drinks only when out with Ken, his action is full of distinctiveness. Consistency refers to a condition in which people behave in a given way when a situation of the same kind arises (Kelley, 1978).
Fundamental Attribution Error
When an individual is faced with a negative situation, they tend to attach the situation to external conditions. When they are faced with a position situation, they tend to attach the situation to an internal condition. It means that positivity is seen as a personal initiative and negative element as influenced by external factors (Keith & Frese, 2008).
Personal Experience: Inaccurate Judgement
In normal life, there are instances where I have made a decision which has been taken the wrong way by my family members. The fact that decision that I made ended up being misinterpreted based on the perception of my family members has made me believe in the fact that attribution theory and bias affect human behaviors.
The consensus is concerned with similar behavior within a group. The first time that I ever took alcohol, my family believed that my action was because I was hanging around friends who always took alcohol when they went out. The fact is that on that day I was not hanging out with that group.
Distinctiveness is concerned with the individual behavior that is consistent with a given situation. When my family had shown their displeasure about the fact that I was hanging out with the wrong group, I was angry. They expected that I would lock myself in the room, which I did not. It failed to go in line with their belief that I would always stay aloof when angry.
The fact that I did not lock myself in the house meant that I had acted contrary to the consistency aspect. Every time I was angry I stayed aloof, it was consistent. On that particular day, I did not act in that way, so it was not consistent with the general expectations.
Creative Decision Making
Creative decision making is an important part of effective decision making. The level of competition in the society is high, and creative decision making is the only way that one can save time and cost. Creativity is important in decision making because it allows an individual to have a range of ideas from which to select the most suitable one for the situation being handled.
Decision making is very critical in the society from a business and personal point of view. Effective decision making relies upon other theories such as rational decision making and creative decision-making models. The paper has identified that perception and attribution are two important factors that play a role in decision-making process. At the same time, the paper has covered a personal situation which illustrates the fact that attribution affects conclusions that people made about acts initiated by others.