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


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