Ch 3: Decision Making Models for Business

About This Chapter

Review several business decision-making models with this convenient online study guide chapter. These lessons and quizzes can benefit business students who need to study for exams, catch up in class, bring up their grades or simply reinforce their understanding of common decision-making models.

Decision Making Models for Business - Chapter Summary

This chapter provides an overview of various decision-making models that are used in the business world. After examining types of decision-making models at a high level, you'll dive into the specific steps, phases and applications of different models, including the PACED, normative, administrated and garbage can models. To help you reinforce your understanding of the information, we've included short self-assessments throughout the chapter. You can access these resources at any time, and we have subject matter experts who are available to answer any questions you may have about these decision-making models. By the end of the chapter, you should be equipped to:

  • Compare types of decision-making models
  • Explain the development and uses of decision-making models in business
  • Outline the steps of the PACED decision-making model
  • Evaluate the normative, garbage can, incremental and administrative models of decision making

6 Lessons in Chapter 3: Decision Making Models for Business
Test your knowledge with a 30-question chapter practice test
Decision Making Models: Definition, Development & Types

1. Decision Making Models: Definition, Development & Types

In this lesson, you'll gain an understanding of when decisions need to be made and discover how to use different decision-making models and types. Both rational and intuitive decision-making models are discussed.

Paced Decision Making Model

2. Paced Decision Making Model

Would you like to start making more rational decisions? Discover the five steps behind the PACED decision-making model and learn to apply them in practice with the help of the PACED matrix.

The Normative Model of Decision Making

3. The Normative Model of Decision Making

How do you make a decision about how to make a decision? Explore five strategies offered by the normative model of decision making, and learn the factors to consider when choosing the best strategy for your situation.

The Garbage Can Model of Decision Making

4. The Garbage Can Model of Decision Making

Organizations can be messy! The garbage can model explains the decision-making process in organizations with changing preferences, poor processes and high staff turnover.

The Incremental Model of Decision Making

5. The Incremental Model of Decision Making

Sometimes, the decision cannot be reached in one go. Instead, you make a step-by-step progress towards a solution. Explore the incremental model and its three phases of decision-making.

Administrative Model of Decision Making

6. Administrative Model of Decision Making

Do you always consider all possible alternatives before making a decision? Learn more about the concept of limited rationality and its consequences with the help of the administrative model of decision making.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Support