Introduction Decision making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. Making a decision implies that there are alternative choices to be considered, and in such a case we want not only to identify as many of these alternatives as possible, but to choose the one that best fits with our goals, objectives, desires, values, and so on. (Harris 1980). There are two types of decision making, individual and organizational. This article will give a thorough explanation on theories, models and processes of decision making, examine decision making Apple vs Google, and present groupthink phenomenon. Decision Making Theories Classical decision making theory based on the orientation of the decision makers, such as, economics or market conditions values. A “rational choice” is one which is based on relatively fixed preferences and follows a logic of consequence, by which current actions are dictated by anticipation of the value associated with future outcomes (March, 1994). After finding and gathering info and fact, decision makers are assumed to choose among alternatives by some values (minimizing bad consequence and regret, maximazing profits). However, …show more content…
Apple or Google decision making depends on individual who has limited capability and grounded rationality. Although they have different approach. Apple using top-down approach. The decision making process is depend on exclusive group of people in gathering information and ideas, but the final critical decision decided by its C.E.O. Low level employees are excluded, even though they are directly affected by the outcomes. While different approach applied in Google company, they are using bottom-up approach. Google allows employee who has great idea to decide, whether they want to develope or not and formed small group project. There is no executive spreads their decision that made on board
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.
Decision-making in the workforce is a process of responsibilities used by upper management to implement, enforce rules, regulations, and maintain a successful environment. Decision-making implemented more effectively by making a plan, thinking it through, accepting more than one opinion and determining what is best. However, decision-making often utilized more effectively by opening doors of opportunities for a suggestion, question, discussion, and feedback. Although, more involvement helps improve understanding, utilize behavior skills and present opportunities for better communication. Everyday life consists of decision-making, the right decision may not always be applied, but ensure room for improvement and opportunity. Individuals approached decision-making in many different ways. As stated by (Jones, Graham, & Bateman, 2006) decision making is a procedure used to recognize a problem, weigh the alternatives and evaluate a solution in which, certain situations will require different approaches to become effective.
To close the gap between actual and desired performance, decisions need to be made. Decision making involves making a selection from among alternative courses of action. Implementation and evaluation of the implementation provide feedback into the next cycle of group decision making.
Decision making is affected by the Group Think because of the lack of openness that should be displayed and offered by everyone involved. The development of the organization is dependent on the ability of the group to make decisions that are thought through and not made solely on pressures and accepted or narrow minded ways that are not thought out.
Decision making is one of the most important aspects in life and work because of its strong link to success and effectiveness. Actually, successful people achieve their goals in life and work through effective and efficient decision making. The decision making process is usually guided by an individual’s beliefs, values, and attitudes as well concepts. While a person can use various concepts in making decisions, they should be very careful to select a concept that is effective and contributes to huge success. Nonetheless, these concepts exist to help an individual become a better decision maker in the world around him/her.
Bounded rationality is defined as a major revision to the theory of rational decision making. It incorporated assumptions that accounted for imperfect information, decisions under uncertainty and perceived probability. It offered two new ways to attack decision problems using science and mathematics.
9, in “What is Groupthink,” n.d.). while the concept and theory of Group think was developed by Janis in relation to foreign policy decision making and in the context of communication, it can be expanded to, although it does not apply directly, other situations such as my experience with Student Film Union. Not all the antecedents applied to my experience and the decision made about what kind of short film we are to make as club will most likely not be unethical due to my lack of input. However, Groupthink also appears frequently in the business world (Sims, 1992). A desire for cohesion and quick decision making, neglects the effective and unheard ideas which are silenced in result. To avoid Groupthink, the ideas of all group members must be considered, leaders should be impartial, the isolation of the group should be avoided, and decisions should not be made
The rational choice theory states that people make decisions in a rational but also in a self- interested manner (Class Notes 4/4/2017). Bounded rationality is the theory that when individuals make decisions, their rationality is limited by the information they have as well as the time available to make the decision. The time constraints and lack of full information are what differentiates bounded rationality and the rational choice theory. However, the garbage can model is said to represent most real life organizational decisions as they are random and unsystematic (Class Notes 4/4/2017). This model of organizational decision making is a collection of problems and solutions. The problems look
Decision -making is a critical detail and necessary task in all aspects of life, but when groups of people are tasked with this process there must be steps covered to insure success. When examining decision-making within distributed groups, topics such as diversity, performance, communication, preference, and structure need to be investigated. Upon critiquing and examining multiple sources, one will have a deeper and more critical outlook on this complicated yet important topic. The topic under review will uncover the best practices in understanding decision making
The concept of ‘rationality’ has been talked through the centuries. According to Grey (2013), rationality is a big question because of this proposition which has the meaning and difficulties seem to be defining of a whole set of issues which have resonated through both organisation theory and practice ever since. And rationality is the basis of a decision, rational decision makers are objective and logical, they reach the goal that maximises the value. Not only rationality is important to organisations, and also it can be identified in various kinds of management theories. This essay will introduce the different aspects of the concept of ‘rationality’ and make explanations that how these are recognised in different management theories.
As stated by Prasad (2008), the managers should identify the different choices available in order to get most acceptable outcome of a decision. From searching different alternatives the managers can evade blocks in operations as choices are suitable if a particular idea goes wrong. Khanka (2000) expresses the view that selections can developed from in many ways such as can get from sources like experience, do training other organizations, and take others ideas and suggestions related in problems. Furthermore to improve alternatives solution the managers may investigation the signs of a problem for clues or fall back on intuition or result that stated by Griffin and Moorhead (2010). For an example in marketing department a non-programmed decision is compulsory the manager have to produce alternatives for raise market share. As McShane and Von Glinow (2000) pointed out that in a programmed decision is a standard operations is not to generate choice but can take out from the documented that already saved. Next an organizer should search the mission of a decision. In other words they need to define what is to be accomplished by it (Quick & Nelson, 2013). The decision criteria are important as mentioned by Dubrin (2002). The several criteria are consumers must aware of varies in quality of products, there not happen inflation, workers must consider the quality of improvements and lastly job satisfaction should not be reduce.
Thinking critically and making decisions are important parts of today’s business environment. It is important to understand how the decision making process works and the steps involved. The nine steps of the decision making process are: identifying the problem, defining criteria, setting goals and objectives, evaluating the effect of the problem, identifying the causes of the problem, framing alternatives, evaluating impacts of the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it
Many methods have been developed to simplify the decision making process. In this paper, the rational model of decision making will be discussed first. Then, some of the factors that cause deviation in the rational
Effective decision-making is very important on how probability can be applied therefore effective decision-making must be rational. As mentioned before, people who are deciding rationally are attempting to reach goals in a systematic way. They make sure
This report will discuss about the approach to rational decision making process. It discusses how an everyday problem faced by management can be tackled by using