TABLE OF CONTENTS
I. INTRODUCTION
II. DECISION MAKING
III. RATIONALITY AND BOUNDED RATIONLITY
IV. INTUITION AND EMOTION
V. CONCLUSION
VI. REFERENCES
VII. BIBLIOGRAPHY
I. INTRODUCTION
Today's organizational life is typified by chaos, uncertainty, and ambiguity. Managers and employees encounter constant change in their jobs, for example, an organization or department restructure, or perhaps a merger or de-merger, a leadership change, a business improvement change initiative, a conflict between employees, or even several of these all at once. Then there are the external factors that affect your company and your job such as the Asia financial crisis in 1997 and the effect from international events like the September 11.
Successful managers recognize that organizational life is ambiguous and uncertain and that this undercuts rational analysis, problem solving and decision making. Therefore, they make decision by working from the assumption that what is most important about any event is not what happened but what it means.
Example of Markov Decision Process (MDP) transitio...
Decision Making Chart
Simplyfied example: Decision Trees can improve inv...II. DECISION MAKING
Individuals at all levels and in all levels of organizations make decisions or choices from two or more alternatives. Decision making is not just for managers. Decision making is undoubtedly the most difficult and most important task a manager performs. Executives rate decision making ability as the most important business skill, but few people have the training they need to make good decisions consistently. (Selly and Forman 2002, p 3)
Few people today would doubt the importance of relevant information when making important decisions. Yet, many people are not aware of the need for a logical approach to the decision itself. They consider it sufficient to collect data, analyze the data, and then simply think hard in order to arrive at a good decision. They use strategies for analyzing their decisions.
A poor quality decision making process is more likely than a high...