A. Setting Objectives Setting objectives is the first step in the rational decision making process. The objectives not only determine the target one is aiming for but provide standards with which the objective situation is compared. Decisions can be reassessed and adjustments made when the situation appears to deviate from the present standards. B. Monitoring the Environment Monitoring the environment is the second step in the process. This is necessary to see how well the individual or group is progressing toward the goal.
Several outcomes are possible.
Threat or problem may arise in the environment, making the goal impossible to reach. Some different course of action must be decided upon. Opportunities that would enhance goal attainment may arise. Must decide how to make best use of this opportunity. Research indicates managers are more sensitive to perceived threats than to perceived opportunities.