Both of the theories are concerned in identifying the best decision and can help the managers to assume exact, perfect accuracy and fully rational of decision. Normative theories are concerned with 'how we should or ought to reason, make judgments and take decision' (Over, 2004). Theories falling into this category include formal logic, probability theory, and decision theory. Descriptive theories set out to describe how people actually think when making decisions and have empirical evidence to support them. Based on the theories, in order to inform the aim of exploring the processes through which people make choices, there are many social scientists other than psychologists try to account for the behaviour of individuals.
The process is more flexible and direct that agreement among decision-makers but not scientific analysis determines the policies adoption (Anderson, 2010). Yet, there are no incentives for achieving long-term goals. The decision is made on each issue and the decision-makers need not to consider the consistency to the long-term goals. There is no guide to decision-makers to arrive at the adjustments (Jones, 2004) and the theory cannot be empirically proved. Garbage Can model is in ‘organizational anarchy’, which the decision-makers are disconnected with problems and solution.
Decision-Making is defined in Cambridge Dictionary as “The action or process of making important decisions” (Decision-making 2016) and a decision is often regarded as being based on a number of sub-decisions (Hoffman and Yates 2005). Decision skills are influ- enced by a number of cognitive processes, and when performed in complex environments human decisions are based on assumptions and intuition (Hoffman and Yates 2005; Klein, Ross, et al. 2003). Hoffman and Yates (2005) argue that the decision making process as defined in the common language is insufficient, as it often is simplified to a three step model of identi- fying, deciding, and executing on a certain thing. These decisions are rare and artificial, compared to the decisions encountered
Decision making is the process of examining possibilities options, comparing and choosing a course of action. Making effective decision, as well as recognizing when a bad decision has been made and quickly responding to mistake. Some experts believe that decision making is the most basic and fundamental of all managerial activities. Every organization will have a decision maker who is a manager in each management. A good manager will make decision making based on the data from the surrounding them.
Rational Choice Theory, in layman terms sees people as maximizers of self-interest who engage in a cost-benefit calculation to achieve a better outcome over a worse one (Lim, 78). The self-interest of an individual is subject to change, based on the surrounding conditions. This is further explained by the assumption that rationality can be institutionally, culturally or socially defined (Lim, 82). Hence, it can be said that rational choice theory takes into account the effect of the environment on the decision making capability of an individual. This is also referred to as the ‘’thick variant’’ of rationality and using this variant enables this theory to be applied on both micro and meso-levels.
In other words, decision-making means a choice or preference of something among other alternative (Bauer & Erdogan, 2009). In the knowledge of the above definition, it is essential to know that group makes better decisions if the group is diverse. This is because individuals in the group have different experiences and
Chance favours only the prepared mind. Decisions can be regarded as the processes of selecting one or more choices. The choices that we select often have monumental impacts on ourselves and the people around us. It is surprising yet that decision analysis as a subject is given such little attention by most education systems throughout the world. I did not study decision analysis directly until I chose it as an elective subject in my 3rd year of university.
THE PROCESS OF MAKING GOOD ETHICAL DECISIONS A. Decision Process In Individuals - Decision making can be regarded as a mental process or cognitive process resulting in the selection of an action from among different alternatives. Every decision making process gives out a final choice. The output of the decision making process can be an action or an option of choices. Decision making process involves the following steps: 1.
Simply put, game theory is considered to be a bag of analytical tools. These tools are used to help model, analyse, and understand the phenomena that is observed when decision-makers interact with each other . Game theory provides a framework based on models gamse of con ict and cooperation between rational decision makers .These situations consist of several decision makers with dierent objectives. In these situations, the decision of each decision-maker aects the outcome for all the decision makers involved thus distinguishing game theory from standard decision theory, which solely involves one decision maker and his or her goal. Game theory tries to determine the behaviour of the players and what their move will be .