Rational Choice Theory

Jenna Doucet (2010).

Abstract

The aim of this paper is to demonstrate how the six step process of the rational choice problem solving method can be applied to any organizational problem in a general way. The paper uses Service Canada as an example. This paper is not intended to stipulate the problems or shortcomings of rational theory or the process at large.

Rational Choice Theory

In light of new trends in their clients needs Service Canada has been in the process of implementing several new paradigms in their service delivery (Tan, 2007). The government’s application of new delivery methods could be facilitated through the rational choice process of problem solving. The rational choice theory facilitates problem solving by dividing the process into six steps: identifying the opportunity, choosing the best decision process, choosing the best alternative, implementing the selected alternative, and evaluating the decisions outcome.

The first step in the process is identifying the problem or opportunity. The focus should be on the extent of the problem and not on the causes. For Service Canada the problem was in the gap between the number of clients and request they were able to process in a day and the number of clients they wanted to service. With the growing number of clients needing its services, the organization faced both a problem and an opportunity to improve its delivery methods.

In the second phase, choosing the best decision process, Service Canada should look at whether the decision is a programmed decision and has been solved in the past or if it is a non-programmed decision and requires going through all of the steps in the decision process (McShane, 2006). In the case of Service Canada’s current problem it is a programmed decision.

The list of possible solutions that Service Canada could implement is large. Service Canada could implement solutions that have worked well in the past, or that have worked for other organizations in similar situations. For example, Service Canada could open more offices and hire more employees, train current employees to process request faster, upgrade their knowledge management software to enhance efficiency, make more services available online, and provide more self-serve units at their offices.

The fourth step would be to choose the best alternative. From a cost perspective, the most cost efficient solutions would be to train employees to process request faster by upgrading their technological systems and by providing more online services. The cost of the solution is an important factor to the government as Service Canada is a non-for profit organization aimed to support Canadian citizens. According McShane (2006) to the rational choice theory suggests that individuals make ‘rational’ decisions based on their own ideology. In this scenario the government as a decision-making would be interested in the option that would allow them cut costs in the long run. Technological advances could keep government costs down and allow for more citizens needs to be processed with less overhead cost of maintaining additional offices and employees.

The next step is to implement the selected alternative. This is probably one of the most difficult steps in the process. This involves moving the decision from idea into reality. This step is probably also one of the lengthiest processes. To accomplish this difficult process and its goals Service Canada resulted to private sector technology companies (Tan, 2007).

The last step of the process is evaluating the decision. The best way for Service Canada to monitor the success of its implementation would be to look at overall figures, the number of complaints totaling its offices and conduct service quality surveys. McShane (2006) says that ideally, this information should come from systematic benchmarks, so that relevant feedback is objective and easily observed” (p. 216).

The rational choice problem solving theory is a process that can be easily applied to solve any organizational problem. The example above illustrates how the process could be applied to Service Canada.


References
McShane, S. (2006). Canadian organizational behavior (6th ed.). Canada: McGraw-Hill
Ryerson.

Tan, K. (2007). Service Canada: a new paradigm in government service delivery.
Leadership in a Networked World: John F Kennedy school of government.