Convenience

Identifying Alternatives
Once the decision situation has been recognized
and defined, the second step is to identify alternative courses of effective action.
Developing both obvious, standard alternatives and creative, innovative alternatives
is generally useful.
16
In general, the more important the decision, the more attention
is directed to developing alternatives.
17
If the decision involves a multimillion-dollar
relocation, a great deal of time and expertise will be devoted to identifying the best
When faced with a
decision situation,
managers 
should . . .
. . . and end up with
a decision that best
serves the interests
of the organization.
•
obtain complete
and perfect information
•
eliminate uncertainty
•
evaluate everything
rationally and logically
©
C
en
ga
ge
Lea
rn
ing
F I G U R E 4 . 2
The Classical Model of Decision Making
steps in rational
decision making
Recognize and define
the decision
situation; identify
appropriate
alternatives; evaluate
each alternative in
terms of its
feasibility,
satisfactoriness, and
consequences; select
the best alternative;
implement the
chosen alternative;
and follow up and
evaluate the results
of the chosen
alternative
Chapter 4:
Managing Decision Making
1 0 5
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locations. AT&T spent over a year searching before selecting the Dallas–Fort Worth
area for its new corporate headquarters. If the problem is to choose a color
for the company softball team’s uniforms, less time and expertise will be brought to
bear.
Although managers should seek creative solutions, they must also recognize that vari-
ous constraints often limit their alternatives. Common constraints include legal restric-
tions, moral and ethical norms, authority constraints, available technology, economic
considerations, and unofficial social norms. Boeing and Airbus identified three different
alternatives to address the decision situation of increasing international airline travel
capacity: They could independently develop new large planes, they could collaborate in