Monday, April 26, 2010
In this chapter the author discusses "Individual and Group Decision Making." We all make decisions on a daily basis. From what we are going to eat to what clothes to wear, our decisions impact our lives in many ways. In the business world everything is about making good decisions by identifying a problem and then finding the right solution that leads to a desired result. The book introduced the rational model approach which is used by most managers. "The rational model approach proposes that managers use a four step sequence when making decisions: 1) identifying the problem, 2) generating alternative solutions, 3) selecting a solution, 4) implementing and evaluating the solution." This approach is used by most companies in order to find good solutions to a problem. In the retail industry they use this approach when the stores are not reaching the sales goals of the month. In this case, the managers will meet with the employees to figure out why they are not selling more, then they will find a solution, and finally they will carry out the solution plan and see if it works.