Sep 22, 2021Decision making is the case ofa) Planning b)Organizing c) Staffing d) Directing AnswerAnswerNew questions in Business Studies.
Case-Based Decision Theory (CBDT) is a theory of decision making which postulates that people tend to choose acts which performed well in similar cases in
Decision-making is the case of ______. A. Planning. B. Organising. C. Staffing.
How do we make decisions?
When making a decision, we form opinions and choose actions via mental processes which are influenced by biases, reason, emotions, and memories.
The simple act of deciding supports the notion that we have free will.
We weigh the benefits and costs of our choice, and then we cope with the consequences.
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Overview
decision making, process and logic through which individuals arrive at a decision.
Different models of decision making lead to dramatically different analyses and predictions.
Decision-making theories range from objective rational decision making, which assumes that individuals will make the same decisions given the same information and preferences, to the more subjective logic of appropriateness, which assumes that specific institutional and organizational contexts matter in the decisions that individuals make.
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Rational decision making
In modern Western societies the most common understanding of decision making is that it is rational—self-interested, purposeful, and efficient.
During rational decision making, individuals will survey alternatives, evaluate consequences from each alternative, and finally do what they believe has the best consequences for themselves.
The keys to a decision are the quality of information about alternatives and individual preferences.
Modern economics is built on this understanding of how individuals make decisions.
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Satisficing and bounded rationality
In the 1940s, organization theorists began to challenge two assumptions necessary for rational decision making to occur, both of which were made obvious in cases where markets failed and hierarchies were necessary.
First, information is never perfect, and individuals always make decisions based on imperfect information.
Second, individuals do not evaluate all possible alternatives before making a choice.
This behaviour is directly related to the costs of gathering information, because information becomes progressively more difficult and costly to gather.
Instead of choosing the best alternative possible, individuals actually choose the first satisfactory alternative they find.
The American social scientist Herbert Simon labeled this process “satisficing” and concluded that human decision making could at best exhibit bounded rationality.
Although objective rationality leads to only one possible rational conclusion, satisficing can lead to many rational conclusions, depending upon the information available and the imagination of the decision maker.
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What are the different types of decision-making theories?
Decision-making theories range from objective rational decision making, which assumes that individuals will make the same decisions given the same information and preferences, to the more subjective logic of appropriateness, which assumes that specific institutional and organizational contexts matter in the decisions that individuals make.
