The fourth step requires the decision maker to develop alternativesthat could succeed
in resolving the problem. No attempt is made in this step to appraise these alterna-
tives, only to list them.
Once the alternatives are listed, the decision maker must evaluate the alternatives. The
strengths and weaknesses of each alternative become evident as they are compared with
the criteria and weights established in the second and third steps.
The final step in this model requires the decision maker to select the best alternative.
This is done by evaluating each alternative against the weighted criteria and selecting the
alternative with the highest total score.
Assumptions of the Model
The rational decision-making model we just described contains a number of assump-
tions.^7 Let’s briefly outline those assumptions.
- Problem clarity.The problem is clear and unambiguous. The decision maker is
assumed to have complete information regarding the decision situation. - Known options.It is assumed the decision maker can identify all the relevant
criteria and list all the workable alternatives. The decision maker is also aware
of all possible implications of each alternative. - Clear preferences.Rationality assumes that the criteria and alternatives can be
ranked and weighted to reflect their importance. - Constant preferences.It is assumed that the specific decision criteria are con-
stant and that the weights assigned to them are stable over time. - No time or cost constraints.The decision maker can obtain full information
about criteria and alternatives because it is assumed that there are no time or
cost constraints. - Maximum payoff.The decision maker will choose the alternative that yields the
highest perceived value.
HOW DOINDIVIDUALSACTUALLY
MAKEDECISIONS?
Chaichana Homsombat, a 21-year-old employee at Pan Asia Footwear Public Company in
Thailand, the world’s third-largest Nike subcontractor factory, explains his job: “Each of us has
to work constantly. The faster we meet the assigned quota, the earlier we can go home.”^8
Homsombat’s quota is to pack 1296 pairs of runners into boxes each workday.
The deputy managing director of the plant, Boonrawd Indamanee, says the quotas improve
productivity. A human rights inspector at the plant wonders whether employees are really get-
ting a fair day’s pay under the quota system. The management does not want trade unions in
the plant, but the inspector fears that “Workers don’t know their rights. They simply accept
whatever is given to them.” Thus when asked if the company gives benefits to employees,
one responded: “The uniform. We get three of them when we join the company and two
more each year.” If employees are not aware of their rights, or do not have full information about
them, or have few alternatives, are they really able to make an informed decision about how
to behave?The situation at the Nike plant in Thailand raises some questions: Do decision makers
actually follow the rational model? Do they carefully assess problems, identify all rele-
vant criteria, use their creativity to identify all workable alternatives, and painstakingly
evaluate every alternative to find an optimizing choice?
Chapter 9Decision Making, Creativity, and Ethics 2952 How do people
actually make
decisions?