6 Decision Making Models With Benefits And Drawbacks

6 Decision Making Models


Effective decision-making is essential for people, organisations, and communities in our complicated and fast-paced environment. Making wise selections necessitates a methodical, careful process that takes into account numerous variables and possible outcomes. The frameworks provided by decision-making models enable people and groups to traverse the complexity of options and improve their decision-making. The most popular decision-making models and their applications are examined in this article, together with their advantages and disadvantages, to show how they can be employed.

The 6 Decision-Making Models

1. Rational Decision-Making Model

A rational decision-making model is a traditional strategy that makes the assumption that decision-makers are rational individuals that gather and assess all pertinent data before choosing the best choice. This methodology entails a number of sequential phases, such as recognising the issue, developing solutions, assessing solutions based on specified standards, choosing the best choice, and putting the solution into practise and evaluating it. This paradigm emphasises systematic analysis and logical thinking, but it also makes the assumption that all information is available at all times, which may not always be possible in real-world situations.

2. Bounded Rationality Model

The bounded rationality model, in contrast to the rational decision-making paradigm, admits that decision-makers are subject to cognitive limitations and information processing constraints. This paradigm, put forth by Herbert Simon, contends that people tend to make "good enough" decisions rather than the best ones. To deal with time limits and information overload, decision-makers adopt cognitive shortcuts, heuristics, and simplified decision rules. While using this model carelessly can result in biases and errors, it can also produce results that are adequate.

The Bounded Rationality Model's benefits

  • Compared to the rational decision-making paradigm, it is more realistic.
  • Making better selections can be aided by it.
  • Making more effective decisions is possible with its assistance.

The Bounded Rationality Model's drawbacks

  • It may result in less-than-ideal choices.
  • It could be challenging to utilize.
  • Bias may result from it.


3. Intuitive Decision-Making Model

Making decisions requires a lot of intuition, especially when there is little time or information available. The intuitive decision-making approach places a strong emphasis on using intuition, instinct, and unconscious patterns to guide judgements. It entails spotting patterns, using prior knowledge, and following one's gut. However, biases can affect intuition and it might not always produce the best results. It is crucial to strike a balance between intuition and analysis, take the situation into account, and weigh the risks.

The Intuitive Decision-Making Model's Benefits

  • It might be swift and effective.
  • It might be determined by intuition and experience.
  • It may be original and creative.

The Intuitive Decision-Making Model's Drawbacks

  • It might be slanted.
  • It can be challenging to defend.
  • Errors may result from it. 

4. Decision Tree Model

Decision-makers can assess prospective outcomes and evaluate alternatives using decision trees, which are visual representations. This model employs a tree-like structure with nodes for decisions, branches for various options, and leaves for possible outcomes. Decision trees offer a methodical technique to weigh several possibilities, give outcomes probabilities, and determine expected values. When making difficult judgements including numerous interconnected factors and uncertainties, this model is especially helpful.

The Decision Tree Model benefits

  • They are rather simple to interpret and comprehend.
  • They can be applied to both categorical and continuous data to produce predictions.
  • They can withstand noise and outliers with considerable ease.

The Decision Tree Model Drawbacks

  • They could be delicate to the selection of features.
  • They might be too tight.
  • The cost of training them computationally can be high.

5. The Vroom-Yetton decision-making model

A popular approach, created by Victor Vroom and Philip Yetton, aids managers and leaders in deciding how much employee input into decision-making is suitable. The importance of the decision, the amount of information at hand, and the degree of subordinate commitment to the decision's outcome are all taken into account by this model. The Vroom-Yetton model offers a framework for choosing the best autocratic, consultative, or group-based decision-making style by taking these aspects into account.

6. The Recognition Primed Decision (RPD)

Gary Klein created the model, which is a cognitive decision-making paradigm. It is frequently used to describe how professionals act quickly and wisely in difficult circumstances. The RPD model emphasises intuitive and experiential decision-making processes instead of traditional decision-making models that place an emphasis on analysis and evaluation of alternatives.

The Recognition Primed Decision's (RPD) Benefits

  • It can be applied in circumstances where there is a shortage of both time and knowledge.
  • Even those with little training or expertise can utilise it.
  • It can be applied in several contexts.

The Recognition Primed Decision's (RPD) drawbacks

  • It might not be accurate in every circumstance.
  • In circumstances where there are several viable options, it might not be effective.
  • It might not always be morally right.


Making good decisions is a crucial skill for both individuals and organisations. Models for decision-making offer systematic ways to handle difficult options and enhance results. Understanding these models enables decision-makers to make more informed and deliberate decisions, whether they use the intuitive decision-making model to draw on expertise, the decision tree model to evaluate probabilities, or the rational decision-making model for logical analysis. It's critical to be aware of the limits and biases inherent in each model and to modify them in light of the unique circumstances and complexity of the current decision. Individuals and organisations can improve their capacity for making wise judgements, which will result in better outcomes and greater success, by utilising proper decision-making models.