From time to time, individuals need to make decisions probably for themselves or for personal reasons; some decisions are meant for other people, some for business sake, and as a contribution towards something positive and beneficial. Because of the complexity of the concept of decision making, many scholars structured decision making models with a purpose of making the procedures easier and smoother when settling for a decision in various contexts.
What is a Decision Making Model?
A decision making model is a structured and systematic approach in taking decisions. It is a means of structuring data for ease of presentation to the decision maker instead of just sorting through a list of choices or alternatives, which may sometimes cause confusion and trigger indecisiveness on the person.
A model is developed from the decision making process and the use of the model is embedded in the process itself. Most of these models are used by many businesses and organizations as they are deemed useful and efficient in arriving at decisions.
Various Decision Making Models
Here are some of the decision making models which may be useful to you:
a. Kepner Tregoe Model
This matrix is a unique decision making method for solving problems in a systematic manner, making decisions and analyzing possible risks. Another term for this matrix is Root Cause Analysis. There are four basic steps to this type of model:
• Identifying and evaluating the situation
• Analyzing the problem
• Evaluating the Decision
• Analyzing Potential Problem
b. Decision Step Models
Sometimes this is called Rational Decision Model or Eight Step Decision Model, but it can have several variations. This is a step-by-step method done in sequence. There are 5, 6, 7, and 8 Decision Step Models in variation. The situation and the problem are important factors in determining the kind of Decision Model to be used.
c. Six Thinking Hats
This model was developed by Edward de Bono with a purpose of discovering various angles and points of view on a complex situation. The concept is about six hats of various colors (green, yellow, blue, white, red and black) which are represented by individual emotions as well.
d. Carnegie Decision Model
Developed by Richard Cyert, James March and Herbert Simon at Carnegie-Mellon University, this model is a strategy of satisficing, a combined term for “satisfy” and “suffice.” The alternatives are generated by research and the first satisfactory option is considered until a consensus is achieved.
e. Iterative Decision Model
This is commonly used in decisions involving technology, and the steps are performed in an increasing manner and tested from time to time.
f. Vroom-Yetton-Jago Decision Model
Originally a work of Victor Vroom and Philip Yetton, and then revised by Vroom and Arthur Jago after a few years, this decision making model is focused on getting the most efficient and best decision as well as the ways in arriving at the decision. It contains a series of seven Yes/No questions that draws out the decision criteria and chooses the most appropriate situation out of the five types of situations.
g. Contingency Decision Model
This framework is grounded on two dimensions: goal consensus and technical knowledge (understanding of cause-effect relationships necessary for goal achievement). The model is designed using a template or matrix. On a two by two matrix, one axis is for the goal consensus and the other is for the technical knowledge.
The Significance of Decision Making Models
Decision making frameworks and matrix are efficient tools especially in a business or management setting. Complex situations that require complex decision making are made easier by these approaches. They require a high level of analysis from the decision makers aside from simply enumerating the possible alternatives.
Although they are most applicable to complex business situations, some models may still serve to be useful for simple day-to-day situations both in personal and professional aspect.
The confusion that goes around the decision making models is probably in the technicalities such as its methodologies, techniques, and processes. It is different from the simple decision making process that does not require a lot of tools and data for analysis. If these models are a little too difficult to use for simple decision making, then you can opt for the simple techniques in making decisions.