Decision making theory
Introduction:
Why do we do what we do? Almost everything that a human being does part-take making decisions this is why making decisions is one of the most important activities of human beings. Individuals have to face variety of options and alternatives and they have to make decisions without knowing the results. Decision making process is made up of step by step. The assurance of this process is on setting a criteria, then weighing the results and the alternatives before reaching a final decision. The process of decision making requires creativity in analyzing every elements and options based on how every person thinks considering the consequences of each and every final decision.
Definition: Decision making tries
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Many studies and researchers show that decision makers can’t always make up their minds in the right way while making decisions. The personality of each individual is determined by the way he makes decisions
Types of decisions:
1) Normative decision: “ is a model about how decisions should be made in order to be rational.” This type is consist of principles that introduce how decision makers should decide.
2) Descriptive decision: shows what people with different personalities actually do. It uses cognition to describe the decision changeability at different attitudes rather than giving a solution.
3) Perspective decision: “is a model about what people should and can do.”
Models of decision making:
There are many theories and views may be found in the literature, which are:
1) The rational model: the process of rational decision making contains a number of steps such as:
Intelligence: “finding occasions for making decisions.”
Design: “inventing, developing and analyzing possible courses of action or alternatives.”
Choice: “selecting a particular course of action from those available.”
Review: “assessing past
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Frequently Many small decisions must be made before Complex decision could end up in the best conclusion. Moreover, each decision directly or indirectly, may have an impact on other decisions in subsequent models. Which makes it complex to make a decision?
Paradox of choice:
People assume that the more choices available means the better options and the more satisfaction. But beware of excessive choice: the excess of choices and options can make you doubt every decisions you make before you even make it, you can set up high expectations unrealistically's, and it can make you accuse yourself for all disappointments and failure. In the long run, this could lead to an incapacity of decision-making. Furthermore a society that tells us that there is no reason or excuse for missing perfection when your options are boundless, and a lot of options can lead to serious depression.
Statistical decision theory:
Many statistical methods are available to arrange evidence, risk assessment, and help in the decision-making. The risks are classified to type I and type II errors can be measured (cost, estimated probability, expected value…) and reasonable decision making is
Often many choices can be communicated and order to make a decision and avoid judgment (Weber & Johnson,
In the article, “Past Experience is Invaluable For Complex Decision Making,:” it
In “The Choice Explosion” by David Brooks, the author describes the state of decision-making skills and how they have affected life in recent years, specifically in America. Brooks begins with a description of a social psychology experiment on Japanese and American college students and the decisions they wanted to make for themselves. The results showed that the American students wanted to decide in four times more areas than the Japanese students. Brooks then makes the conclusion that this is the result of American individualism; this individualism has provided more choice and control over everyday life. However, the author also points out that arriving at good outcomes is no easy task, even for qualified decision makers.
Since the dawn of humanity, people have acted with various intentions and various degrees of judgement. For centuries, people have considered the necessity of considering the outcomes before action. In “The Rime of the Ancient Mariner”, Samuel Taylor Coleridge argues that one should avoid impulsive action. Similarly, Frankenstein by Mary Shelley concerns the importance of contemplating the outcomes before action. One should never act without consideration, instead avoiding impulsive behavior.
In “Tyranny of Choice,” Barry Schwartz brings to the table the topic of choice. The common believe is more choices, equals more freedom. Under that assumption we are living in the best times then. Everything in the world has multiple options to choose from. The choices range from what type of gum you want, to the best life insurance policy for your family.
Once this has taken place, Mr. Miller will need to select a decision-making model such as the Administrative Model, Incremental Model, or Mixed Scanning Model to follow. 2. What decision-making approaches could Principal Miller use to ensure the quality
One of the most common action that businesses as well as individuals needs to face on a daily basis is a decision making process. Some of the choices can be difficult, other very simple , yet no matter on the situation these choices can have a large impact on our future life. As we are all aware, conflict can occur very fast and easily, so for the same reason it is important to learn how to effectively deal with these kind of problems. There are many different techniques which we can use while reducing the tension , yet the six step model process is known as the most effective.
Gregory Mankiw mentions “making decisions requires comparing the costs and benefits of alternative courses of actions.
It is a systematic method that utilizes knowledge, measures, and environmental analysis to produce the most ideal solution. Each decision is analyzed based on its possible consequences with an emphasis on short and long-term solutions. These processes require ample amounts of information, time, and people. While quality solutions are produced, the willful choice model does not allow for flexibility regarding environmental changes such as technology and healthcare policy. Internal changes including turnover also negatively impact the rational decision process.
Choice theory also recognizes that there are multiple influences
A decision is the thought process of choosing between two or more outcomes that may or may not have a great impact. When thoroughly pondered, living life is fundamentally based on making the best decisions. Whether or not they are great or small decision making is critical. Often times, it is the smallest decisions one can make that impact the even bigger decisions later to come. Starting from the time people wake up in the morning, the will be surrounded by the most basic decisions until they go to sleep that night.
If I say that we all are irrational, some of you might defend me say that not all are irrational. But I can prove that all of us have unintentionally been an part of irrational decision making, like not wearing vehicle seat belt because you thought it might spoil your amazing outfit, smoking and drinking alcohol, poor financial decision (buying unnecessary items), not attending a lecture or class, and many more. In a survey conducted in Manhattan 50% of the people had purchased an umbrella for a very high price on rainy day from street vendor. Moreover, 77% of the people said they would purchase an umbrella for a high price on a rainy day if it were necessary. However, 90% of the people will not buy the same umbrella for even half the price if it was a sunny day (Summer, 2012).
International Journal of Psychology and Psychological Therapy, 7(3), 381-391. Retrieved from http://www.ijpsy.com/volumen7/num3/176/factors-that-affect-decision-making-gender-EN.pdf Neith, K. (2012). Role of the Frontal Lobes in Reasoning and Decision Making. Retrieved from http://scitechdaily.com/role-of-the-frontal-lobes-in-reasoning-and-decision-making/ Routio, P. (2007). Planning an Empirical Study.
For example, Managerial, Marketing, and Production, financial. It follows systematic and traditional based decision-making concept such as game
When making a decision I prefer to analyse my surroundings, check the facts and concluded to practical solutions instead of making assumptions. When the decision is made I will gather the necessary information needed to achieve my goals and if working with others I expect them to grasp the situation immediately and take action. I have little to no tolerance for indecisiveness and assumptions in situations where there is a deadline because it is expected that persons hold their own. My obligations are my main priority even if personal matters have to suffer. I tend to lead or prefer to work alone in order to produce high quality results.