Describe the rational model of decision making.

Answers will vary. The rational model of decision making comes from classic economic theory and assumes the following:
(i)The outcome will be completely rational.
(ii)The decision maker has a consistent system of preferences, which is used to choose the best alternative.
(iii)The decision maker is aware of all the possible alternatives.
(iv)The decision maker can calculate the probability of success for each alternative.
In the rational model, the decision maker strives to optimize, that is, to select the best possible alternative.
Given the assumptions of the rational model, it is unrealistic. There are time constraints and limits to human knowledge and information-processing capabilities. In addition, a manager's preferences and needs change often. The rational model is thus an ideal that managers strive for in making decisions, and it captures the way a decision should be made, but it does not reflect the reality of managerial decision making. Please see the section "Models and Limits of Decision Making" for more information.