Decision Making in choice phase
When choosing, someone needs to make a phase so there will be a better choice that they get :
• Principle of choice
Based on acceptance of someone that have the power to choose and it based on their solution approach
• Normative Models
– Optimization
Based on the after effect of each alternative
– Rationalization(Reason making system)
• More of good things, less of bad things
• Courses of action are known quantity
• Options ranked from best to worse
– Sub optimization
Decisions made in separate parts of organization without consideration of whole
Problem
• Satisficing is the willingness to settle for less than ideal.
– Form of sub optimization
• Bounded rationality
– Humans have a limited capacity for rational thinking
– They generally construct and analyze a simplified model
– Their behavior with respect to the simplified model may be rational
– But, the rational solution for the simplified model may NOT BE rational in the real-world situation
– Rationality is bounded not only by limitations on human processing capacities, but also by individual differences
– Bounded rationality is why many models are descriptive, not normative
• Too many choices
In Decision Support System (DSS) we can make a choice based on our logical (instinct), Ratio (quantity), and based on our reasoning too. That why it have a rationalization and because of it too rationalization is not quite good enough to real world or real time situation so people make a bounded Rationality so people can see how much they depend on rationalization and cut it off to make the ratio is not always correct
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