12.4. Decision-Making Models

Try these first

1. 1.

   Define the Rational Decision-Making Model.

   Hint

   Think about how choices are made.

2. 2.

   What does 'bounded rationality' refer to?

   Hint

   Consider factors that might restrict your decisions.

3. 3.

   What is the primary goal of the Rational Decision-Making Model?

   • To make decisions based on intuition
   • To maximize utility
   • To facilitate random choices

   Hint

   Focus on what this model emphasizes.

4. 4.

   True or False: The Bounded Rationality Model focuses on finding the optimal solution.

   • True
   • False

   Hint

   Remember what 'satisficing' means.

5. 5.

   Design an organization’s decision-making process using aspects of the Rational, Bounded Rationality, and Incremental Models, providing justifications for each model's inclusion.

   Hint

   Think of different levels of decision-making in an organization.

6. 6.

   Evaluate a decision-making scenario in a company that uses the Garbage Can Model. Determine how innovative solutions arose despite the chaos.

   Hint

   Consider how spontaneity can lead to creativity.