National Institute of Technology 2009 M.B.A Finance Organizational Behavior - Question Paper

Managers need to coach their subordinates to understand the impact their moods and emotions have on their behavior, relationships and performances. They need to give them with techniques to better manage them and create productive emotional spaces.
A gifted manager needs a high rate of ‘emotional intelligence’ too. He should be more capable or understanding themselves and their colleagues’ emotions.
Q.3: B) What is the rational decision-making model? Under what conditions is it applicable?
ANS:
The optimizing decision maker is rational. This basically means that the decision maker makes consistent, value maximizing options within the specified constraints. All decisions made using this model follow the 6 steps in rational decision making model.
1. These model beings by defining the issue. A issue is identified when there is a discrepancy ranging from the existing and the desired state of affairs. Thus importance is placed on identifying the accurate issue so as to address the problems.
2. Once the issue is identified, the decision maker has to identify the decision criteria’s which would be helpful in solving the issue. This is very important so as to have standardization in the process.
3. Once all the specification / criteria are identified then the decision maker has to prioritize the identical so as to reach the accurate decision.
4. Then the decision maker has to list all possible options to solve the issue. At this stage only the listing is done and no analysis is done on the effectiveness of the solution suggested.
5. Once all the options are listed then the decision maker has to weigh every of these choices against the laid down criteria’s. The strength and weakness of the solution suggested.
6. Final step in this process is to identify the best possible choice for the issue by computing the optimal decision, based on the scores provided for the choices listed.
Rational decision making model is applicable only if the subsequent assumptions are taken:
1. Problem clarity: it is presumed that the decision maker has all the info and that the issue is clearly understood.
2. It is presumed that the decision maker can identify all the relevant criteria and that he is aware of all the consequences of every option.
3. Clear preferences: Rationality assumes that the criteria and options can be ranked weighted to reflect their importance.
4. It is presumed that the specific decision criteria are constant and that the weights assigned to them would remain stable over time.

Earning:   Approval pending.