About This Chapter
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
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.
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.
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.
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.
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.
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.
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Other chapters within the Business 316: Strategic Decision Making course
- Introduction to Strategic Decision Making
- Strategic Thinking in Making Business Decisions
- Statistical Tools for Decision Making
- Quantitative Tools for Decision Making
- Financial Data for Strategic Decision Making
- Technological Support for Strategic Decision Making
- Strategic Decision Making & Risk Management
- Group Dynamics in Strategic Decision Making
- Strategic Decision Making for Managers
- Decision Making in International Businesses
- Analyzing Business Decisions
- Communication in Strategic Decision Making