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Utilizing Rational and Perception Decision-Making

In: Business and Management

Submitted By JUN146
Words 1142
Pages 5
Utilizing Rational and Perception Decision-Making

A decision could lead us to satisfactory outcomes or, unfortunately a disastrous situation. Especially in the world of business, the complexity and uncertainty of the environment make the process of decision-making very significant in the execution of management. Top managers may differ in style in having decision-making. Some tend to rely on a rational decision making approach while some tend to rely on perceptual decision-making. Some may argue that decision-making is about perception rather than rational, therefore, managers should concentrate on perception decision-making. Instead, these two methods have a completely different process and doctrine. Therefore, due to distinct circumstances, managers should decide which one is more appropriate or even combining the two kind of style to make a wise decision. The following essay will first demonstrate the advantages and disadvantages of both rational and perception decision-making style, then try to examine how they can be combined to optimize the outcome.

According to Mintzberg and Wesley (2001), the process of rational decision-making begins with defining the environment, followed by diagnosing the situation, then designing possible alternatives for settlement and finally selecting the optimal solution to undertake. This process emphasizes on planning and analyzing based on known facts. In other words, to begin, managers should first undertake market research in order to gather sufficient amount of information that could represent a genuine situation that the firm is encountering. The relationship between rational decision-making and the performance of a firm has bees discussed by many studies. According to Eisenhardt K. M. (1992), the degree of rationality in decision-making can be measured by the comprehensiveness of information that is gathered and advise...

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