Thinking Skills and decision making

Faculty of Management
Sciences
Thinking Skills and Decision
Making

THINKING SKILLS AND DECISION MAKING

QUIZ

SUBMITTED TO

MISS MEHWISH ALI

SUBMITTED BY

SADIA IMAM

38553

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Thinking Skills and decision making

Quiz

 Framework model use for decision making

Question 1
Why the framework model use for decision making and what is are its implications in
practical life explain each point with example?

Answer
Frame work model use for decision making:

This model is based on the assumption that individuals make decisions by systematically
analyzing all available information, evaluating alternatives, and selecting the option that
maximizes utility or satisfaction. Here are the key steps of the Rational Decision-Making
Model, along with their implications in practical life, explained with examples:

 Identifying the Problem or Opportunity:

Implication:

Recognizing the need for a decision and defining the problem or opportunity clearly is crucial
for effective decision-making.

Example:

A business owner identifies declining sales figures and customer complaints about product
quality as a problem that needs addressing.

 Gathering Relevant Information:

Implication:

Collecting comprehensive and accurate information allows decision-makers to make

informed choices.

Example:

The business owner conducts market research, customer surveys, and competitor analysis to
gather data on market trends and customer preferences.

 Identifying Alternatives:

Implication:

Generating a range of potential solutions or courses of action increases the likelihood of

finding the best option.

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Thinking Skills and decision making

Example:

The business owner considers various strategies, such as improving product quality,
launching a new marketing campaign, or introducing new product features, as potential
alternatives.

 Evaluating Alternatives:

Implication:

Assessing the pros and cons of each alternative helps decision-makers weigh their options
objectively.

Example:

The business owner conducts a cost-benefit analysis for each alternative, considering factors
such as cost, potential impact on sales, and feasibility.

 Selecting the Best Alternative:

Implication:

Choosing the alternative that offers the greatest benefits relative to its costs is the ultimate
goal of decision-making.

Example:

After careful evaluation, the business owner decides to invest in improving product quality,
as it aligns with customer preferences and has the potential to increase customer satisfaction
and loyalty.

 Implementing the Decision:

Implication:

Putting the chosen alternative into action requires effective planning, resource allocation, and
execution.

Example:

The business owner develops a detailed action plan, allocates resources for product
improvements, and implements quality control measures in the production process.

 Evaluating the Decision:

Implication:

Assessing the outcomes of the decision allows for learning and adjustment based on
feedback.

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Thinking Skills and decision making

Example:

The business owner monitors sales performance, customer feedback, and product reviews to
evaluate the impact of the quality improvements and make any necessary adjustments to
future decisions.

In practical life, applying the Rational Decision-Making Model helps individuals and
organizations make well-informed choices, minimize risks, and achieve their goals
effectively. However, it's important to acknowledge that real-world decision-making often
involves limitations such as time constraints, imperfect information, and cognitive biases,
which may deviate from the idealized rationality of this model.