Human Decision Making Processes What Is a Decision

Human Decision. Making Processes

What Is a Decision o A reasoned choice among alternatives o Part of the broader subject…problem solving o How do we solve a problem? o Problem solving – the overall process of closing the gap between reality and a more desirable situation. o Each decision is characterized by a decision statement

Decision Statement o States what we are trying to decide n A clear decision statement is important to intelligent decision making n If we don’t have a clear decision statement, you cannot develop the best system to support people making that decision n Begin every DSS development project by getting – or at least trying to get – a clear understanding of the decision to be made with the help of the proposed system

The Decision Process

The Decision Process o The Intelligence Phase n Finding, identifying, and formulating the problem or situation that calls for a decision. (Deciding what to decide) n The Design Phase p Where we develop alternatives p May involve a great deal of research into the available options n The Choice Phase p Evaluate the alternatives and choose one of them

Types of Decisions o Structured n One for which a well-defined decision-making procedure exists p Can be left to a clerk with written instructions or to a computer o Unstructured n One for which all three decision phases are unstructured p p We don’t know how to specify at least one aspect of each phase: its inputs, its outputs, or its internal procedures Computers can help, but these leave more of the process to the worker o Semi structured n Has some structured aspects but can’t be completely structured p p Computers can provide a great deal of help Most decision are of this type

How Business People Make Decisions o Can be categorized along three dimensions n Rationality p Collect n and analyze information objectively Politically p The extent to which a decision involves competition among decision makers n Flexibility p The extent to which decision makers free themselves from traditional structure

The Impact of Psychological Type on Decision Making n Myers-Brigg Type Inventory p Introversion/Extroversion p Sensing/Intuition p Thinking/Feeling p Judgment/Perception

The Impact of Culture on Decision Making o Organizational Culture o National Culture