In our daily lives, we constantly make decisions, from choosing what to have for breakfast to defining strategies in large companies; but, ¿Have you ever stopped to think about how you make those decisions?
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There are different models of decision making that help us understand and improve this process, each model offers a unique perspective to analyze and address situations, considering different factors.
Understanding these models is not only vital for leaders and professionals, but for anyone seeking to make informed and effective decisions in their life.
Let's get to know 11 types of decision-making models, and how they influence when deciding.
In this article you will find:
What are decision-making models?
The decision making models They are a conceptual framework or a series of steps that provide a systematic structure for approaching and solving problems or making decisions.
These are designed for help people think more clearly and structured about the decisions they must make, allowing them to consider all the options and their possible consequences.
Enrique Yacuzz (2007), states that “Like good theories, good modelsThey explain, predict and delight.” A model explains why and how a decision is made, roughly predicts the outcome of the decision, and eventually delights those who know and use it. The decision models, in addition, are a map to guide individual and group work;” (p.5).
Basically, these models represent different approaches, and depending on the situation and context, people and organizations may use a combination of several models.
11 Types of decision-making models
There are different decision-making models that have been developed over time to help people and organizations make more effective decisions, some of these models are:
1. Rational model
He rational model decision making is based on a logical process and structured, starts from the principle that the decision-maker has all the necessary information and seeks the best possible solution, begins by identifying the problem, collecting data, generating alternatives, evaluating these options, and finally selecting the most optimal one.
Although this model represents the ideal decision, in practice, factors such as time and information limitations can make its strict application difficult; However, it provides a solid and systematic foundation for addressing complex decisions.
2. Bounded Rationality Model
He Limited Rationality model, proposed by Herbert Simon, maintains that decision making is sometimes limited by available information, cognitive ability and time available; That is, people cannot always consider and evaluate all possible alternatives to reach an optimal decision, due to these restrictions.
Therefore, mental shortcuts are used to simplify the decision process. Although it can lead to quick decisions, it is also susceptible to biases and errors. This model offers a more realistic and human perspective on how we really make decisions in complex scenarios.
3. Intuitive model
He intuitive model decision making emphasizes the role of intuition, previous experiences and subjective perceptions, Instead of relying on detailed analysis, decisions are based on hunches or feelings.
This approach is particularly useful in situations of high uncertainty or when information is ambiguous; Although it may be seen as less structured, intuition is a product of accumulated experiences and unconsciously recognized patterns. However, this model can also be vulnerable to personal biases and cognitive errors, so its use must be balanced with more analytical approaches.
4. Incremental model
He incremental model decision making maintains that decisions are made in small successive stepsRather than through large leaps or transformations, contrary to the search for optimal solutions, this model focuses on modest adjustments to existing policies or actions.
It is particularly relevant in political or bureaucratic contexts where radical changes are difficult to implement. In essence, the incremental approach accepts that in many situations it is more feasible and pragmatic to make incremental improvements, given the complexity and uncertainty of certain decisional environments.
5. Acceptance zone model
He “Acceptance zone” model focuses on a predefined range of solutions that are considered acceptable to the decision maker or decision group.; Instead of searching for the optimal option, one evaluates whether a decision falls within this predetermined zone; If so, it is accepted; If not, it is rejected.
This approach recognizes that in many contexts, especially organizational ones, not all decisions need to be optimal, but simply acceptable to move forward. The key is to previously define what is “acceptable”, facilitating a more agile and pragmatic decision-making process.
6. Prospective analysis model
He prospective analysis model, derived from Kahneman and Tversky's Perspective Theory, examines how people evaluate potential gains and losses when making decisions; since, people do not always act rationally; Their perception of risk varies depending on whether they face potential gain or loss.
This model suggests that we are more averse to losses than attracted to equivalent gains. Additionally, decisions are influenced by how options are presented, which can lead to inconsistent and sometimes irrational preferences.
7. Retrospective analysis model
He retrospective analysis model decision making focuses on evaluating past decisions to inform current ones. Instead of anticipating future consequences, we look back to understand the causes and effects of previous decisions.
This subsequent reflection allows us to identify lessons learned and patterns of success or failure. Although valuable for understanding the impact of past actions, this model can be susceptible to confirmation bias, where data is sought to justify the decision made. It is essential to balance this retrospection with prospective approaches for more holistic decisions.
8. Garbage Can Model
He “Garbage Can” model decision-making, proposed by Cohen, March and Olsen, describes decision making in organizations as a chaotic and ambiguous process, instead of a linear and logical process, decisions, problems, solutions and participants interacting randomly; In this “pot,” different elements are mixed and sometimes coincide to produce decisions.
It is especially applicable in organizations with ambiguous objectives or in high-risk situations. uncertainty, as it captures the unstructured and opportunistic nature of many decisions organizational.
9. Political model
He political model decision making perceives the decision as a result of influences, power and negotiations between different actors or groups; Instead of a purely rational or systematic process, decisions are formed through the interaction of different interests and agendas. Coalitions, influence and negotiation play a central role.
It is especially relevant in environments where multiple stakeholders with different objectives and power resources coexist, this model highlights that, in many organizations and governments, decision making is inherently political and conflictive.
10. Model based on Heuristics
He heuristic-based model It refers to using mental shortcuts or simple rules to make decisions quickly in complex environments, originating from the studies of Kahneman and Tversky, suggests that, faced with information overload and cognitive limitations, people frequently resort to heuristics.
Although these facilitate quick decisions, they can also introduce biases and systematic errors. For example, the “availability heuristic” drives decisions based on recently remembered information, while the “representativeness heuristic” focuses on apparent similarities; These heuristics illustrate how our minds simplify complexities, sometimes at the expense of precision.
11. Creative process model
He creative process model in making decisions highlights the importance of innovation and the generation of novel ideas, Unlike more linear models, this one focuses on stages such as preparation, incubation, illumination and verification.
The process begins with the accumulation of information, followed by a period of subconscious reflection, then a revelation or innovative idea emerges, which is finally evaluated and refined. This approach recognizes that optimal solutions sometimes require thinking “outside the box” and values intuition and inspiration in decision making.
Bibliographic references:
Enrique Yacuzz. AN OVERVIEW OF DECISION MODELS. CEMA University. Av. Córdoba 374, C1054AAP Buenos Aires, Argentina, ISSN 1668-4575 (print), ISSN 1668-4583 (online) Editor: Jorge M. Streb; editorial assistant: Valeria Dowding [email protected].
