Monday, October 20, 2014

The Conceptual Foundations of Decision Making

What is decision making?
A process of choosing among two or more alternative courses of action for the purpose of attaining a goal(s).

Decision making is one of the main DSS concept



Decision Making conceptual foundation: 
  1. Characteristics of Decision Making
    • Groupthink
    • Evaluating what-if scenarios
    • Experimentation with a real system!
    • Changes in the decision-making environment may occur continuously
    • Time pressure on the decision maker
    • Analyzing a problem takes time/money
    • Insufficient or too much information
    • Better decisions
    • Tradeoff: accuracy versus speed
    • Fast decision may be detrimental
  2. Decision-Making Disciplines
    • Behavioral: anthropology, law, philosophy, political science, psychology, social psychology, and sociology
    • Scientific: computer science, decision analysis, economics, engineering, the hard sciences (e.g., biology, chemistry, physics), management science/operations research, mathematics, and statistics
    • Each discipline has its own set of assumptions and each contributes a unique, valid view of how people make decisions
  3. Decision Style 
    • Decision-making styles
      • Heuristic versus Analytic
      • Autocratic versus Democratic
      • Consultative (with individuals or groups)
    • A successful computerized system should fit the decision style and the decision situation
      • Should be flexible and adaptable to different users (individuals vs. groups)

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