Decision-making is a trait that entails a leader's effectiveness, be it a minute decision concerning the roster or the major business operation-oriented decisions. The decision-making process of every individual varies depending on their knowledge and skill levels or the gravity of the circumstances.

An impromptu decision at perfect timing is
superior to an ideal choice taken at some
unacceptable time. Quote by Pearl Zhu

Regardless of the nature of the professional field, every leader or manager is tasked with monitoring the various operations and making sound decisions for maintaining a smooth operation. Individuals with experience in the field can easily make the required decisions, yet there's a standard procedure for making business-oriented decisions.

Decision modelling comprises different types of standard procedures that help managers plan and execute the basic requirements in operation. It results in enhancing the team performance and overcoming the various shortcoming. The nature and objective of different businesses vary from one organisation to the other, yet a certain decision model might be applicable for many.

types of decision models

Why is it Important?

There are various types of decision models based on the objective of the business and the various other aspects, available information, potential solution, and the urgency of the decision. Leaders have to evaluate the various aspects and analyse the outcomes of their decisions to lower the potential risks and drawbacks.

Decision models come in handy when there's a lack of available information, as managers can still lay the groundwork for their decisions and intuitively change it accordingly. For example, when companies plan to develop a new product, it doesn't mean that the company's sales team waits for it to take shape completely.

The four fundamental elements of decision-making
models are formulation, evaluation, appraisal, and

Rather, they design various strategies for sales based on the currently available information and develop them further when the product is finalised. Another reason for the need for a standard decision model is lower risk management. The risks involved in a business process can be lowered through effective planning.

Decision modelling helps in providing a basic layout for the decision-making process concerning a business. The basic steps in a decision-making model, setting goals, analysing information, and seeking the best solution, are the most crucial steps to finalise it. Having a basic model helps provide a blueprint for the process that can be revised in the future.

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Types of Decision-Making Models

The different decision models are like effective tools that ease the decision-making process and maintain its effectiveness with less planning and more implementation. Various decision models are based on different aspects of decision making and strategies. Here are the four types of decision modelling:

Rational Decision

Such a model focuses on the rational procedure to reach a solution. The basic steps of this model include Defining goals, Analysing available resources, Aligning viable solutions., Analysing the various alternatives and finalising the decision. A rational model provides a logical framework to the decision and logically analyses the alternatives.


As the name suggests, this decision model uses feeling and intuition in the decision-making process. The process includes defining goals, finding possible obstacles through similar models, calculating the risks, finalising the decision and taking necessary actions. Such a model is less technical and more in line with the previous finding of similar models.

Did you know that RPA or Robotic Process Automation is an upcoming automation technology that is yet another form of AI useful for low-level automated decision making?

Recognition Primed

It is a model used by experienced managers who possess sound knowledge of the field. Such models are often used in fast-paced decision making and require quick thinking. It includes defining goals, analysing relevant information, creating potential solutions, making changes to the solution, finalising and executing the decision.


Creative decision modelling is entirely based on new and original ideas and is suitable for production and sales decision making. The process of creative decision making is based on defining goals, heeding relevant information over time, designing various solutions, choosing the most appropriate solution. The aftermath of a creative decision often requires more input for shaping the solution to its prime, and it is a slow-paced process.

What are the Characteristics of a Suitable Decision Making Model?

A prime solution or a suitable decision often has a few basic values and inputs that makes it ideal. Often such conclusions are attained after some time and analysing all the alternatives; on the other hand, experienced managers are apt to achieve it through their skills. The fundamental attributes that make a decision suitable and ideal for a given circumstance are:

  • A suitable decision possesses clear and defined values; such solutions are used repeatedly in an organisation and are finalised after a complex analysis process.
  • After analysing all the alternatives, the process includes testing all the similar and alternative decisions to prove why a decision is ideal or seeking insights from them.
  • The decision best defines the goals that were set initially. A final decision that accurately meets the aims of the process and is useful for enhancing the process.
  • Lowering the risk management is also one of the crucial aspects of finalising a decision. The level of risk must be minimised to increase the effectiveness of a process and meet the goals.

Decision making is a part of our everyday life, and it often requires contemplating various options and the ideals of the final goal. Decision models examples include the various processes in a business, production, sales, marketing, ect. The decision-making process, from minor budgeting through your grocery shopping or as large scales as decision making for scientific research, depends on the goals.

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About the Author

Charles Hill

Charles Hill

Charles writes blogs and articles for students who are facing problems with their management assignments. His articles have been featured on several websites. He has contributed to the academic enhancement of students from the University of New South Wales, Central Queensland University, Edith Cowan University, etc. He joined the team of My Assignment Services as a consulting expert and now is a full-time academic help provider. His expertise in the field of management covers topics like leadership management, human resource management, business management and several others. His blogs focus on solving the most complex of the queries and simplifying the processes.


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