Decision making model description

Decision making model description 1

Decisionmaking model description

Part1: Select a decision making model of your choice (1 page) Describehow the model works. List any pros or cons of using this model, lista decision making scenario that might benefit from this model.Example: Brainstorming with Post It Notes. Situation: Think of newways to reward employees.

Answer

Choiceof model – DecisionMatrix Analysis

Thismodel uses a table with rows and columns. The rows will contain allthe available options. The columns will contain all the availablefactors that will lead into those decisions. The way to use thismodel is to assign a value to each option/factor combination. Postthis assign a weightage to each score based on how important (orless important) each factor is.

Whenall of these values are added, the final score is arrived at. Thisparticular model is useful when there are so many outcomes, and thereare so many factors that are influencing each outcome. An example forthis would be the scenario where a company is looking to make anacquisition. In front of them are so many companies (one of whichthey want to acquire) and so many factors (the asking price to buythe company, the current state of the economy, access to funds and soon) to choose from.

Prosof using this model:

  • Perhaps the most useful model when there are too many outcomes and too many factors.

  • The eventual decision is made based on numerical values. There is nothing simpler than numbers to make a decision.

  • Numbers are also easy to explain to other decision makers.

  • Numbers also lend themselves to graphical representations.

Consof using this model:

  • The model depends on assigning numerical values to the factors. Sometimes it is not easy as it sounds. For instance, how can one measure the total intelligence value of a person, if that is a factor?

  • Assigning weightages is another area of complication. Any mistakes and the end result would not look good. In reality though, that could be the wrong result. A lot depends on the person building the table and assigning values to make this method work.

PartII – Take the Decision making test

Scorefrom the test – 69 (Total)

SubsectionScores

  • Establishing a Positive Decision-Making Environment – 16 out of 20.

  • Generating Potential Solutions – 9 out of 15.

  • Evaluating Alternatives – 12 out of 15.

  • Deciding – 15 out of 15.

  • Checking the Decision – 6 out of 10.

  • Communicating and Implementing – 11 out of 15.

Interpretationof Scores:

Thetotal score (69) puts me in the highest bracket of decision makers,this assessment concludes that I have a very good approach when itcomes to decision making. As per the score, I am good at setting upthe decision making process. Then, I proceed to evaluate theavailable outcomes in a methodical way, and take the right decision.It also says that with experience, I will be able to make betterdecisions, reworking it as time goes.

Areasof Improvement:

Thereare two areas where I am particularly poor in.

  • Generating Potential Solutions – 9 out of 15.

  • Checking the Decision – 6 out of 10.

Ishould focus on coming up with multiple solutions for the challengesthat lie ahead of me. That is the only way to solve this problem.Perhaps I am becoming overconfident of the limited solutions I havein front of me. In fact, it makes sense that the “Checking theDecision” has a low score. It is obvious that I am not checking myexisting decisions to see if they are wrong.

Thatwould explain the overconfidence. If I can overcome that, I can comeup with more solutions. That would involve doing extra checking. Ifthat is done, it will be fine. I will become a better decision maker.

References

Young,J. (Ed.). (2012, February 10). DecisionMatrix Analysis:Making a Decision by Weighing Up Different Factors. Retrieved March19, 2015, from http://www.mindtools.com/pages/article/newTED_03.htm

Howgood is Your Decision-Making?Retrieved from

http://www.mindtools.com/pages/article/newTED_79.htm.