Tracy and Tonya's business has enjoyed enormous growth, and they are not sure how to handle the growing list of back orders, so they sit down together to figure out what they should do. First they list the important criteria involved, then they write down all possible solutions. Having done so, they evaluate these alternatives against the criteria they have established, and after a great deal of discussion, they choose an alternative that they believe will yield the best results. Lastly, having made a decision, they set out to implement it. This is an example of
A) knowledge transfer.
B) bounded rationality.
C) communities of practice.
D) performance-prove orientation.
E) the rational decision-making model.

Question

Quizplus · Accepted Answer

The rational decision-making model is a step-by-step approach to making decisions that is designed to maximize outcomes by examining all available alternatives. The first step in the rational decision-making model is to identify the criteria that are important in making the decision, taking into account all involved parties. The second step is to generate a list of all available alternatives that might be potential solutions to the problem. At this point, evaluating the alternatives is not necessary. The responsibility simply lies in coming up with as many potential solutions as possible. The third step in the model is the evaluation of those alternatives against the criteria laid out in step one. Does it matter how much the alternative costs? What exactly will happen as a result of various choices? What will the side effects of the alternative be? The fourth step is to select the alternative that results in the best outcome. That is, given the costs and benefits of each alternative, which alternative provides us with the most value? The fifth step is to implement the alternative.

Tracy and Tonya's Business Has Enjoyed Enormous Growth, and They