The classical model also called the rational model, represents the earliest attempt to model decision-making processes. This model involves seven basic stages.
The classical model also called the rational model, represents the earliest attempt to model decision-making processes. This model involves seven basic stages.
Stage 1: Identifying Decision Situations
In the classic model, the decision-maker begins by recognizing that a decision-making situation exists along with problems or opportunities.
Stage 2: Developing Objectives and Criteria
Once decision-makers have identified a problem or opportunity, then they determine the criteria for selecting among the alternatives to deal with it. For example, before you can decide which job applicant to hire, you need to determine the outcome you’re trying to achieve. If you need the new hire to be effective at sales, then good interpersonal skills might be a criterion.
Stage 3: Generating Alternatives
Once your objectives and criteria have been established, you should consider alternatives successfully reported by you in the past. If the current situation is similar, past solutions can be used effectively. But if the situation isn’t similar, we should generate new alternatives. Even when a situation is similar, it’s often worthwhile to pursue new, creative alternatives because no two situations are identical and subtle differences may make a past solution less effective in the present situation.
Stage 4: Analyzing Alternatives
The fourth step in the process involves analyzing the alternatives generated. To begin, you need to determine which alternatives would produce minimally acceptable results. You can eliminate alternatives that are unlikely to at least achieve the minimally acceptable outcome. Also, you need to examine the feasibility of the remaining alternatives.
Stage 5: Selecting Alternatives
Selecting an alternative flows naturally out of your analysis. The classical model argues that managers will choose the alternative that maximizes the desired outcome. The subjectively expected utility (SEU) model exemplifies this idea.
Stage 6: Implementing the Decision
In the classical model of decision making, effective decision implementation has various components. You need to assess sources and reasons for potential resistance to the decision and then only you can implement your alternative solutions to the current situation.
Stage 7: Monitoring and Evaluating Results
The final step in the classical model involves monitoring and evaluating the results of your decision. To do this, you must gather information and compare it to the objectives and standards you established. This is trickier than it seems. First, you must gather the right information, or you will distort the evaluation, or worse, make it meaningless.
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