Decision models can be rational or intuitive. Rational models involve a structured approach, such as the Vroom-Jago system, while intuitive models rely on subjective factors like values and past experience. Managers often use a combination of both models, and heuristic decision making offers shortcuts in time-sensitive situations. The recognition-based model involves recognizing patterns from past experiences to improve decision making.
Decision models fall into two general categories: rational and intuitive. These two broad categories provide variations for arriving at a decision in any situation. The rational decision model includes the Vroom-Jago system and a seven-step process. Recognition-based decision models are considered intuitive methods. Managers and executives often combine rational and intuitive models when faced with a problem or opportunity.
Rational decision models take an orderly and logical structured approach. A sequence of steps begins with identifying your current problem or situation, followed by compiling all the facts and information needed to create a solution. Next, the data is analyzed for various options to determine which action might achieve the desired result. The last step in rational decision making involves acting on the preferred option and setting aside adequate resources to make it work.
The Vroom-Jago system guides a manager in determining whether he should make the decision independently or include colleagues. For simple problems, a manager typically acts alone. In other situations, she may talk to colleagues separately to outline the situation but not seek feedback. For more complex issues, the manager might call a group meeting to solicit input before the group reaches consensus on a solution.
Intuitive decision models are a subjective way to find a solution. It employs sensitivity, knowledge and good judgement. The manager might use his or her values, ethics and emotions, along with past experience, to solve a problem. Leaders commonly use this technique when decisions need to be made quickly and there isn’t enough time to gather all the facts.
The heuristic decision making is based on the intuitive model, with three sub-categories defined as shortcuts when time is scarce. Representative heuristics means making a decision based on what looks familiar. The anchor heuristic uses a value system to quickly come up with a solution in an emergency situation. The availability heuristic relies on memory and past experiences, along with known facts, to make a decision.
The recognition-based model helps a manager learn to recognize patterns that can be mentally weighed. Recall past experiences where a particular solution worked and determine whether the same process could be effective in the current dilemma. As a person’s experience grows, their ability to recognize patterns improves to make decision making more effective.
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