A manager who really wants to approach a decision rationally and logically should try to follow the steps in rational decision making. Discuss these steps with examples.


CSS Solved Business Administration Past Papers | A manager who really wants to approach a decision rationally and logically should try to follow the steps in rational decision making. Discuss these steps with examples.

The following question is attempted by Miss Nimra Masood, the top scorer in CSS Business Administration papers. Moreover, the answer is written on the same pattern, taught by Sir to his students, scoring the highest marks in compulsory subjects for years. This solved past paper question is uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.

Topic Breakdown:
Decision-making is integral to success of a business. It helps in formulating an effective financial and marketing strategy, along with optimally utilizing the human resource. Hence, understanding the decision making process is the foundation to CSS business administration.
Subject: Principles of Management
Chapter: Decision Making


Decision-making is integral to success of a business. From top to lower management every staff member is bound to make decisions. Decisions made rationally deliver the effective and efficient results. There are five steps in rational decision-making. All steps must be closely scrutinized and evaluated to achieve at a decision. Any error or discrepancy can mislead the management towards a wrong decision.

Assumptions of Rationality:

  • The decision maker must be fully objective and logical.
  • The decision maker has clearly defined the problem and goals are clearly defined.
  • Rational decision would lead towards an alternative that maximizes the likelihood of achieving the goal.
  • Rational decision-making assumes that decisions are made in the best economic interest of the organization.

Steps in Rational Decision Making:

  1. Identifying Problem:

It is the discrepancy between desired and actual state of effect. It is the state where authorities realize that decision needs to be made. Structured problems are familiar and easily defined; therefore, their goals are clear. While unstructured problems are novice in nature; hence, their information is either ambiguous or incomplete. Thus, it requires innovative custom made decisions.

For example a company realizes its laptops are outdated and its employees need a new one.

  • Characteristics of Problems:
    • A problem becomes a problem when a manager becomes aware of it.
    • There is pressure to solve the problem.
    • The manager must have the authority, information and resources needed to solve the problem
  1. Decision Criteria and Weightage:

Once the problem is defined the next step is defining the decision criteria and assigning weightage to each characteristics. Decision criteria are factors critical to solving the problem. Issues such as cost of leaving the issue unaddressed, risks involved and achievability of desired outcomes, are all catered in this phase. Once the decision criteria are defined, weightage must be assigned to each factor determining its relative importance. For example when the company has decided to purchase laptops the next thing is to decide on the features of laptop. Features such as memory, battery life, display quality and cost can influence the buying decision.

Decision CriteriaWeightage
Battery Life6
Display Quality4

Company is focused on memory and cost as its priority.

  1. Identifying Alternative:

The third step in rational decision-making is to identify available alternatives that could help solve the problem. A thorough market research or brainstorming with others can help generate a number of ideas. For example a market research provides alternatives such as HP, Sony and MacBook for buying a laptop.

  1. Evaluation of Alternatives:

The fourth and most technical step is evaluation of available alternatives to find the best option that could solve the problem. There are several ways to evaluate alternatives:

  • Quantitative Factors:
    These factors are measured in numerical terms such as time, cost and resources required to solve a problem. For example quantitative analysis reveals that MacBook is too costly for the company.
  • Qualitative Factors:
    These factors are difficult to measure such as political climate, labor relationships etc.
  • Marginal Analysis:
    This method is mainly used to compare the additional revenues arising from the additional cost.
  • Cost Effectiveness Analysis:
    It is also known as the cost benefit analysis. It measures the potential benefit of each alternative against its cost.
  1. Selecting an Alternative:

Next step is to select the best alternative that could solve the problem effectively. Although evaluation of alternatives can aid in selecting the alternatives, the manager may also rely on certain other factors to reach a final decision.

  • Experience:
    Previous purchase experience certainly has an impact on the decision maker. However, the conditions and type of problem may have a varying outcome to the alternative.
  • Experimentation:
    Relying solely on the evaluation phase to make a decision
  • Research Analysis:
    A detailed research to examine the features is another method to achieve a decision.

For example the company decides to purchase dell laptops due to its previous experience with the brand.

  1. Evaluating the Decisions Effectiveness:

The last step in rational decision-making is to evaluate the effectiveness of the decision made. In other words it is the degree to which the problem is solved and desired state is achieved. For example the purchase of Dell laptops has proved highly effective, as both the employees are satisfied and results have also improved.


For effective and efficient decision making manager must be rational and logical. There are six steps in decision-making that result in achievement of a desired state, at least to a degree. Without rational decision making the manager may get astray and result in an error prone decision. Therefore, only rational decisions can ideally perform under varying conditions.

CSS Solved Past Papers’ Essays

Looking for the last ten years of CSS and PMS Solved Essays and want to know how Sir Kazim’s students write and score the highest marks in the essays’ papers? Then, click on the CSS Solved Essays to start reading them.

CSS Solved Essays

CSS Solved General Science & Ability Past Papers

Want to read the last ten years’ General Science & Ability Solved Past Papers to learn how to attempt them and to score high? Let’s click on the link below to read them all freely. All past papers have been solved by Miss Iqra Ali & Dr Nishat Baloch, Pakistan’s top CSS GSA coach having the highest score of their students. 

General Science & Ability Solved Past Papers

CSS Solved Pakistan Affairs Past Papers

Want to read CSS Pakistan Affairs Solved Past Papers and learn how to attempt them to score high? Let’s click on the link below to read them all freely. All past papers’ questions have been attempted by Sir Kazim’s students, who scored the highest in the subject.

CSS Solved Pakistan Affairs

CSS Solved International Relations’ Past Papers

Have you opted for International Relations in the CSS examination and want to score above 150? Then, click on the CSS Solved International Relations’ Past Papers by Miss Abeera Fatima, the top IR scorer and the best IR coach in Pakistan. 

CSS Solved International Relations Past Papers

Articles Might Interest You!

The following are some of the most important articles for CSS and PMS aspirants. Click on any to start reading.

List of Important Idioms for PMS Punjab
List of Important Antonyms for PMS Punjab
How To Write an Evidence in the CSS and PMS Essay Body
How Did I Prepare and Qualify for the PMS Essay and Precis Paper?
100 Must-Read Essays and Solved Past Papers Questions for CSS, PMS Aspirants
Why Do Most CSS, PMS Aspirants Fail Exams?
How Much Is English Important for CSS, PMS Aspirants?
Best CSS and PMS English Essay and Precis Teacher in Pakistan
High-Frequency Words for CSS, PMS Aspirants
CSS Solved Pakistan Affairs Past Papers 
CSS Solved General Science and Ability Past Papers 
CSS Solved Sentence Corrections with Explanations by Sir Kazim
Who Is The Best CSS English Essay and Precis Teacher in Pakistan?
Share Via
Recent Posts


Education Company


Welcome to Cssprepforum, Pakistan’s largest learning management system (LMS) with millions of questions along with their logical explanations educating millions of learners, students, aspirants, teachers, professors, and parents preparing for a successful future. 

Founder: Syed Kazim Ali
Founded: 2020
Phone: +92-332-6105-842
Students Served: 10 Million
Daily Learners: 50,000
Offered Courses: Visit Courses  

More Courses

RS 7000
3 Weeks


RS 15000
Extensive English Essay & Precis Course for CSS
4 Weeks


RS 15000
2 Weeks


error: Content is protected !!