MGT 411 Remarkable Education.

Six step Rational(Classical) Model 1. Define the problem 2. Identify decision criteria 3. Weight the criteria 4. Generate alternatives 5. Rate each alternative on criteria 6. Compute the optimal decision Assumptions of the model 1. Problem clarity 2. Known options 3. *Clear preferences 4. *Constant preferences 5. *No time or cost constraints 6. Maximum payoff Issues with Rational Model -perceptions: impact our decisions (awareness, analysis, interpretation, judgements) -Bounded rationality: simplified models to extract the essential features from complex problems Uses of bounded rationality -limited list of criteria based on most conspicuous choices -final solution represents a satisficing (first acceptable choice) choice Judgmental heuristics -simplifying strategies of rules of thumb used to make decisions -makes it easier to deal with uncertainty and limited info -can lead to systematic errors that affect the quality and ethics of decisions Types of heuristics -availability -representativeness -anchoring and adjustment Availability heuristic