DecisionMaking & ProblemSolving

Define the Problem

Identify the Decision Criteria

Allocate Weights to the Criteria

Develop the Alternatives

Evaluate the Alternatives

Select the Best Alternative

　Name the Mess

　Draw the Map

　Define the Problem

　Gather Information

　Create Alternatives

　Decide on a Solution (weigh Alternatives)

　Develop Approval Strategy

　Evaluate

Problem Clarity

The problem is clear and unambiguous

Known Options

The decision-maker can identify all relevant criteria and viable alternatives

Clear Preferences

Rationality assumes that the criteria and alternatives can be ranked and weighted

Constant Preferences

Specific decision criteria are constant and the weights assigned to them are stable over time

No Time or Cost Constraints

Full information is available because there are no time or cost constraints

Maximum Payoff

The choice alternative will yield the highest perceived value

1.Bounded Rationality

individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity

2.“Satisficing”

identifying a solution that is “good enough”