Decision Making Annotated Bibliography

The decision making process includes cognitive processes that eventually lead to a choice in action while taking into consideration the alternative possibilities (Allen, Dorozenko, & Roberts, 2016). Not all choices have to lead to an action. The values and preferences of the person making the choice also comes into play when making the final decision. Problem-solving to obtain a certain goal or satisfactory by a solution is the main reason people go through the decision making process (Stefaniak, & Tracey, 2014). This process has many factors that end with one final result or solution. The decisions made can be rational or irrational and can be determined by explicit or tacit knowledge (Qingyao, Dongyu, & Weihua, 2016). Since the decision making process can be very difficult at time, psychologists have viewed the process in different perspectives to get a better understanding (Rossi, Picchi, Di Stefano, Marongiu, & Scarsini, 2015). The different perspectives include; psychological, cognitive, and normative or communicative rationality.

People should make decisions every day, some of those decisions are easy to make, while others are quite difficult to implement. An appropriately combined and organized decision-making process will help to control this issue and bring a positive outcome for those involved. The decision-making process may become challenging for people due to “the lack of structure and entail risk, uncertainly and conflict” (Bateman and Snell, 2012, p. 86). That is why people trying to make important personal or professional decisions should have an appropriate model to follow in order to avoid these challenges. Bateman and Snell identified six steps or stages of decision-making process

For the most part, our decision-making processes are either sub-conscious or made fairly quickly due to the nature of the decision before us. Most of us don't spend much time deciding what to have for lunch, what to wear, or what to watch on television. For other, more complex decisions, we need to spend more time and analyze the elements of the decision and potential consequences. To assist with this, many people employ the use of a decision-making model. Utilizing a

What information from this source seems the most important? Note key points mentioned in the source.

What information from this source seems the most important? Note key points mentioned in the source.

Choosing a strategy allowed myself to identify those flaws that may make me unsuccessful as mentioned by Pink in his book Drive. According to Pink, motivation involves internal and external factors that we shelter within our lives that drive our path for success and motivate us to do all we know and want to do. I allowed myself to enter this challenge and was precisely aware of the road that I selected to fulfill my destiny, for it is after all that no road bears difficulties. It’s those obstacles of which I have succeeded to overcome that will permit me to be a winner of which we all are. I allowed myself to face such destiny head on and evade the irrational thoughts from others who seems to think that what I am doing may prove too challenging and deter my path for success. I remind them of a famous quote that I read, by the great Malcolm X of which I bear within my heart that states, “There are no better than adversity. Every defeat, every heartbreak, every loss, contains its own seed, its own lesson on how to improve your performance the next time”. After all, who says a defeat without challenges will not pose problems. J, Hammond, R. Keeney, H. Raiff in their article titled, “ The Hidden Traps of Decision Making”, states that researchers have attempted to discover how the mind function in decision making for nearly a century. Also according to Hammond, Keeney, and Raiff we have a tendency to use our unconscious routine to cope with the complexity that are

* Sample: The sample is limited to a small proportion of working professionals in Western Sydney and may not accurately reflect the population of working professionals.

In today’s economy, decision-making skills vary for each household; however, the bottom-line goal for every individual is to get the most for their money. In order to do this, there are 4 principles of individual decision-making: facing trade-offs, evaluating what one is giving up to obtain their goal, thinking at the margin, and responding to incentives.

Besedes, Tibor, Cary Deck, Sudipta Sarangi, and Mikhael Shor. "Decision-Making Strategies and Performance among seniors." Journal of Economic Behavior & Organization 81 (2012): 524– 533.

Almost everyone uses decision-making on a daily basis. The ability to make decisions is significant because possible outcomes can outweigh losses depending on the decision you choose to make. Decision-making helps to solve everyday problems, but has also been beneficial to solving several scientific issues like Bechera, Damasio, Damasio, and Anderson (1994) did in their study of the Iowa Gambling Task. There were a total of 50 participants in their study, where 44 men and women were from a normal control group and 6 men and women were E.V.R subjects. The subjects are told to select a card from four decks until they are told to stop. The subjects receive money depending on the deck they choose from. After so many turns and receiving money, they

The rational decision-making model describes a series of steps that decision makers should consider if their goal is to maximize the quality of their outcome. In other words, if you want to make sure that you make the best choice, going through the formal steps of the rational decision-making model may make sense. The following are the steps taken to come to a rational decision: 1. Identify the problem, 2. Establish decision criteria, 3. Weigh decision criteria, 4. Generate alternatives, 5. Evaluate the alternative, 6. Choose the best alternative, 7. Implement the decision, 8. Evaluate the decision.

Prospect theory is an important alternative descriptive theory for decision-making under unreliable situation (Kahneman and Tversky 1979), which includes real life selection and psychological analysis between choices that involve risk. Prospect theory, which efforts to explain individual make decisions between risky replacements based on the value of potential gains and losses (Wakker 2010), advanced from expected utility theory, which explains that investors want to maximize expected utility of wealth when unclearly situations (Blavatskyy 2007). According to Kahneman and Tversky (1992), more recent researches perceived nonlinear preferences in choices that do not involve definite events in prospective theory. The concept of framing effect refers description invariances (Kahneman and Tversky 1992). To be specific, individual always makes the same decision in identical choice conditions. Also, decision makers have tendency to

This distinctive book called, “Thinking, Fast and Slow” by Daniel Kahneman, is one of very few exquisite readings I’ve completed so far. Daniel Kahneman is a psychologist in Princeton University, and due to his research, he won a Nobel Prize in 2002 in economics. In the beginning of his book, he speaks of our cognitive System 1 and System 2 ways of thinking. System 1 generates feelings, impressions, and memory. It is very instinctive, automatic, and is considered quick thinking. System 2 on the other hand, is alert during complex problem solving, while dealing with facts and knowledge, and is attentive while working with difficult calculations. For example, a problem such as 24 x 13, this takes more time and knowledge to figure out (System 2), rather then recognizing an emotion from face expressions (System 1). When System 1 is strained, your System 2 steps in to help you process through that specific instant. Now aside from the psychological portion of this book, Mr. Kahneman divulges about a consolidated economic analysis with elemental intuitions from the psychological perspective; such as, luck and skill, overconfidence, risks in the stock market, factors of success and the decision making process. This book is overall concluded with the understanding of behavioral economics, which is the social and cognitive components on economic decisions that are defined by individuals and have consequences that reflect from making those decisions and taking those risks.

Life is full of all sorts of different decisions to choose from, which is working the memory of the brain. This decision making skill is believed to grow during in the beginning ages of adulthood; however, not many researchers have fully tested and understood the development and improvement of the decision making skill. Some scientists have said that the developmental changes in decision making are significantly reliant on the storage of the long-term memory. Therefore, Van Duijvenvoorde, Jansen, Bredman, and Huizanga had all conducted this research study to further explore the possible influences that can cause the developmental variations in uncertain decision making, as well as, analyze how well the decision making skill improves during the Iowa Gambling Test.

The importance of decision making in individual daily life and in organization level was demonstrated by two scientists, Arkes and Hammond (1992), in ‘Judgment and Decision making’ indentified the four types of information which decision maker requires constructing a decision tree.