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Decision Making Model

By:   •  Research Paper  •  830 Words  •  March 29, 2010  •  630 Views

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Decision Making Model

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Abstract

In this paper I am going to explain a decision making model using a situation from my current workplace. This situation will be a manager having to make an executive decision on whether or not to pay an item that is being presented by a non customer.

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In a decision making model there are different phases to help guide a situation where it may be difficult to decide a result at the very moment. According to the text, a decision making model has four basic steps. The text book believes it is to gather information, analyze the options, evaluate the options, and implement a decision. This decision making model is going to be compared to a particular situation involving a manager at a bank having to decide whether or not to honor a check being presented by a non customer.

For instance, the first step to take would be to gather as much information as possible, and prepare you to make a purpose statement. It is important to understand the entire situation that needs to be solved. This means involving others where necessary and using all the resources available to understand the problem. An initial look into the financial part of the problem is also important. A lot of companies are focused on production, and anything that gets in the way of this would decide how quickly the problem needs to be solved. This is why a teller would bring a questionable item to their manager. They need a second opinion and the hierarchy structure shows the manager has experienced the situation before, and feels comfortable making a decision by gathering all the information.

The second step would be to analyze the options. It is essential to remember there are several ways to handle a problem. It may be easy to just assume one way out of an issue. This step helps evaluate what resources may need to be utilized to solve it. The manager typically starts analyzing the information they took in from step one. Whether

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this is looking at the signature card, calling the customer, or seeing the established relationship of the account holder.

The third step in the decision making model would be evaluating the options at hand. This means to gauge how the solution is going to come about. Obviously financials are important when a company is involved so taking a look to see exactly how much is affected and at what rate. Sometimes a model is used to help map out the cash flow and changes involved to it. The manager is going to see how much the check is, and can the branch afford the loss. If the check in question is twenty dollars, the manager might see it fit to pay it and move on with the other customers rather than spend

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