Abstract
Although there are different decision making processes, we will focus on the model of Bounded rationality. Making a decision implies going through the decision-making process which is divided into different steps. We have identified four steps which will be illustrated with concrete and clear examples.
The first step identified is the definition of the problem. When people are faced with a problem, they first have to analyze it clearly so as to find the appropriate solutions. This is no doubt the most important step, since a wrong perception at this stage will have repercussions on all the subsequent steps of the decision-making process. One example would be the heat wave in the summer of 2003 in France.
The French authorities had not properly identified the problem and had not realized the full extent of the problem; this considerably slowed down the decision-making process, i.e. measures to assist the most vulnerable people.
The second step concerns the collection of information. The aim is to make sure that people who make decisions have all the relevant data to guide them. In industry for instance, competitors may go beyond the legal threshold to get as much information as possible. One example would be Renault's alleged espionage case based on allegations that information had leaked and that an executive had been paid 250,000 € to spy; he was dismissed, but these allegations later proved to be wrong. This just shows that organizations need to get as much information as possible
