StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Models of Decision Making - Assignment Example

Cite this document
Summary
The research paper “Models of Decision Making” seeks to evaluate decision-making, which has become one of the most difficult tasks before organizations in today's corporate world. In many decision-making, situations compromise solutions are unavoidable…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.5% of users find it useful
Models of Decision Making
Read Text Preview

Extract of sample "Models of Decision Making"

Running Head: Models of Decision Making Models of Decision Making appears here] of appears here] Models of Decision Making Decision-making has become one of the most difficult tasks before organizations in today's corporate world. In many decision-making situations compromise solutions are unavoidable (Plous, 1993). It was evident at the outset that this is one of those situations where a compromise solution will have to be adopted. However, compromises play vital roles for bringing different parties to consensus for decision-making.

But, it is not as easy as it is said. Think about apportioning a finite set of resources among a number of concerned parties. There may be a number of ways to complete this. The difficulty is to find a way, the "best procedure," which every one would consider it fair and thus find it good enough and acceptable. In most real situations, there exists more than one way, or procedure, to apportion shared resources. Each valid course of action has a rational justification on its own right. This is obvious that any one of the procedures is more beneficial to one of the parties than to the others.

It can also be said that any "convex" combination of these procedures itself has a rational justification. In the corporate culture team decision-making is considered a difficult task. In team decision making, even though all members of a team may not be in total consensus with the final result, all concerned parties must be satisfied with it. The problem is how to put into operation the concept of consensus decision-making. Even though agreement is becoming popular as a democratic form of decision-making.

There are, however, few organizations, which use a model of consensus, which is specific, consistent, and efficient. Often, the consensus process is informal, unclear, and very inconsistent. This happens when the consensus process is not based upon a solid foundation and the structure is unknown or non-existent. In critical circumstances of decision-making, it would definitely be an ideal situation for any organization or team if each involved party could be flexible and willing to give up something to reach an agreement.

But this is a big question how to make this situation. One method is to quantify compromise. When a party makes a compromise, it is accepting a compromise procedure in lieu of the procedure that is providing it the maximum payoff. The difference in payoffs between what a party's maximum payoff and the payoff resulting from the compromise procedure is the opportunity loss, which we refer to as that party's regret. With a same reasoning as in minimizing the sums of squared residuals, for example, in least squared estimates of coefficients in regression analysis, our goal is to find a way of apportioning the finite set of resources among involved parties such that the sum of squared regrets of each party is minimized.

In other words, we are looking for a procedure that minimizes the variance of "regret" of the parties. In addition, it turns out that, when the trouble is posed in a game theoretic framework, the best procedure, as defined above, can be interpreted as the Nash equilibrium. Reference Plous, S. (1993). The psychology of judgment and decision making. McGraw-Hill, Inc.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Models of Decision Making Assignment Example | Topics and Well Written Essays - 500 words”, n.d.)
Models of Decision Making Assignment Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/psychology/1526880-models-of-decision-making-bachelor-essay
(Models of Decision Making Assignment Example | Topics and Well Written Essays - 500 Words)
Models of Decision Making Assignment Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/psychology/1526880-models-of-decision-making-bachelor-essay.
“Models of Decision Making Assignment Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/psychology/1526880-models-of-decision-making-bachelor-essay.
  • Cited: 0 times

CHECK THESE SAMPLES OF Models of Decision Making

Approaches to Decision-Making and Problem-Solving

In the process of decision-making, one needs to make the decision as fast as possible, while ensuring the effectiveness of the decision made (Baker, 2006).... Decision-making 24th , November 2012 Introduction Decision-making and problem solving are important aspects of life.... Good decision-making and problem-solving skills are advantageous for every person, especially those who are in leadership positions.... Therefore, decision-making skills put a demarcation between leaders and non-leaders....
6 Pages (1500 words) Essay

The Role of Emotion in Decision Making

This essay studies the role of emotions in the process of decision making.... It is assumed that the breakthrough of decision research is largely associated with the traditional or behavior decision theory which at the time it was introduced rejected the role played by human emotions in decision making.... While this model throws light on the role of expected emotions in decision making, research also identifies the significance of immediate emotions which play a huge role in altering the decision making process for better or worse....
11 Pages (2750 words) Essay

Schedule and Cost Control Techniques

It is very important to mention here the fact that besides having different Models of Decision Making, there are also different approaches to problem solving as well as decision making.... However, decision making falls within two broader areas of decision making.... n its essence, decision analysis is a technique based on the set of statistical techniques however latest trends in the decision making process involve a broader view of the decision analysis while recognizing the contribution being made to the different phases of decision making process....
2 Pages (500 words) Essay

Decision Making

In relation, there are various Models of Decision Making illustrating how decisions are made.... ocid=89731&tag=content;col1Foundations of decision making.... Concept analysis of decision making.... Types of decision making.... decision making: A Crucial Part of Life al Affiliation decision making is a crucial stage in human interaction.... Comprehensively stated, decision making is “an essential process of human nature” wherein alternative courses of action are considered and scrutinized so that a rational choice can be made (Noone, 2002; “decision making,” n....
2 Pages (500 words) Admission/Application Essay

Management Decision Making

How can managers blend the guidelines for making effective decisions in todays world with the rationality and bounded rationality Models of Decision Making-or can they?... Because decision making is involved in all four managerial functions.... Whether it is identifying a problem, analysing the alternatives or making final choices, managers' decision making skills determine the success of an organisation. A.... All of us bring biases to the decisions we Running Head: MANAGEMENT decision making Management decision making Questions & AnswersMANAGEMENT decision making 2 Management Decision MakingQuestions & AnswersQ1....
2 Pages (500 words) Coursework

Models of Decision-Making

Examples of decision making models include the classical model, administrative Models of decision-making Decision making is a critical process in any organization.... Examples of decision making models include the classical model, administrative model and political model.... Models of decision-makingQuestion one The Classical model of decision making can be utilized in the organization to make various business decisions (Li 1).... This is a prescriptive method of decision making and assumes that managers are rational and logical in their decision making process and their decision will be governed by the best interests of the organization....
1 Pages (250 words) Research Paper

Decision Making Assessment (Synthesis)

The various Models of Decision Making are discussed and it is clear that U.... ny type of decision making is backed by reasoning.... ormative theory of decision making is based on various facets that include “idealizing, rational, super intelligent people” (Bell, Raiffa & Tversky, 1988, p.... ny type of decision making has four common biases: “availability, representativeness, anchor and adjustment and overconfidence” (Cook, Noyes & Masakowski, 2007, p....
2 Pages (500 words) Essay

Management Decision Making

The paper “Management decision making” seeks to evaluate analogical reasoning, which involves establishing a common relation between two or more situation and generating a suitable conclusion.... Wishful thinking and beliefs of individuals may act as suitable motivations for biased decision making.... Heuristics is the process of making decisions quickly without analyzing the same in-depth or logically....
4 Pages (1000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us