This article will help you to differentiate between rational and non-rational models of decision-making.
Difference # Rational Models of Decision-Making:
1. Rational models are normative.
2. They are theoretical or unrealistic in nature.
3. Rational models follow deterministic approach to problem-solving.
4. They believe there exists the optimum situation for decision-making. Such a situation is hypothetical in nature.
5. Rational models presume managers can make optimum decisions.
6. They are based on complete information of environment (internal and external) and knowledge of various alternatives that help in arriving at the best alternative.
7. Rational models believe that outcome of each alternative is known with certainty and perfection.
8. Rational models have no scope for managerial judgment, intuition and personal biases.
9. They advocate perfect rationality in decision-making.
Difference # Non-Rational Models of Decision-Making:
1. Non-Rational models are descriptive.
2. They are practical or realistic in nature.
3. Non-Rational models follow probabilistic approach to problem solving.
4. Non-Rational models believe there exists a real situation for decision-making. Such a situation is realistic in nature.
5. They presume managers can make satisfying decisions.
6. They are based on incomplete information of environmental factors and limited knowledge of alternatives that help in arriving at the best alternative.
7. Non-Rational models believe in incomplete knowledge about outcomes of various alternatives.
8. Non-Rational models are based on managerial judgment, intuition and personal biases.
9. They advocate bounded rationality in decision-making.