Decision Making


Definition: Decision Making is the mental process resulting in the selection of a course of action among alternative options (scenarios).
DM can be logical (rational), but is often unconscious or emotional. 2 major problem with DM exist in the form of cognitive biases and bounded rationality.
Rational DM should normally be preceded by a problem analysis stage and be followed by some form of monitoring / inforcement. DM can be an individual or a group process and is crucial for any organization.
People have DM preferences. These can be analyzed via tools like Myers-Briggs Type Indicator or Herrmann Brain Dominance Instrument.



More on decision making. More on individual decision making: Anchoring Bias, Bayesian Theory, Black Swan Theory, Bounded Rationality, Cognitive Bias, more...


© 2020 MBA Brief - Last updated: 30-3-2020  -  Privacy   |   Terms