Decision Making Method - Essay Example

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Decision Making Method

An advantage of the benefit-cost framework is that it leads to a positive or negative (or zero) number for each program or practice evaluated and, therefore, does not require knowledge of a cost-effectiveness cutoff level to decide whether a particular practice should be undertaken. Finally, a limitation of both approaches is that the benefits and costs to individual members of society need to be aggregated. If the equitable distribution benefits and costs across individuals or groups are of concern, a single cost-effectiveness measure will not do. However, as economists are wont to argue, over large numbers of programs and practices the inequities are likely to even themselves out and, with some exceptions, may reasonably be ignored.
The main steps in this model include (1) identification of main problems and possible solutions to these problems, (2) analysis of financial costs and financial benefits of proposed programs, (3) selection of the best decision.
The first step is a search for alternative solution. The first solution is to buy computers for the training classroom. The second solution is to use company's computers located in different department. The third alternative is to rent a training classroom (in college or university) for the training program.
When generating alternative methods for solving the problem, decision makers must determine wheth ...Show more

Summary

Various decision strategies can be used by decision makers to choose which training solution they wish to implement. Decision makers may choose an optimizing strategy in which they determine the expected cost (not necessarily just the financial cost) and benefit of the outcome associated with all solutions…
Author : modestoklein
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