Topics: Decision making, Risk Pages: 13 (4944 words) Published: June 9, 2014
Decision making can be define as the cognitive process “ resulting in the selection of a belief or a course of a action among several alternative possibillities. Every Decision Making process produces a final choice [James Reason (1990)] that may or may not promp action. Effective Decision Making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker. Decision – making, is one of the central activities of management and is a huge part of any implemantation. For effective decision making, a person must be able to forecast the outcome of each option as well, and based on all these items, determine which option is the best for that particular situation.Human performance in decision making terms has been the subject of active reserach from several perspectives. Form a psychological perspective, it is necessary to examine individual decision in the context of a set of needs, preferences an individual has and values they seek. Form cognitive perspective, the decision making process must be regarded as a continous process integrated in the interaction with the environment. From a normative perspective, the analysis of individual decisions is concerned with logic of decision making and rationality and the invariant chioce it leads to.[Daniel Kahneman, Amos Tversky 2000] The ability to make wise, educated decisions is essential to living a succesful and fulfilled life. Individuals, groups or teams make decisions every day. Some decisions are very important and affect lot of people whereas other decisions are small and affect only one or two people. A decision-making process based on data leads to good decisions. A major concern in management has been to understand and improve decision making. [Isabel Briggs Myers|Myers, I.1962]. There have been two approaches to management decision making [Huber, 1980]. The first is concerned with development and application of normative decision rules based on formal logic derived from economics or ststistics. The second involves descriptive accounts of how people actually go about making judgements, decisions and choices. [Isable B. Myers|Myers,I. (1962)]. Decision making can usually be improved by breaking a problem into parts, working on the parts separately, and then combining themm to make final decision. It has been shown in a variety of works that business decision making environment is a unity of decision makers experience, belief and perceptions on one side, and decision support tools and techniques – on the other side. In making important decisions, any info rmation sources that contain relevant important are going to be accessed and used. In this presentation we are going to show decision making process, models, and types. And explain how we can make strategic decisions in different situations. In fact in making decision in management has a significant role as Peter Drucker says 90 percent of activities in management is decision making, so we are going to discuss this important subject to show different aspect of it and find new ideas in this area research. 1

2.0 Decision Making Process and Steps;
Decision making can be categorised as a process evaluating a problem to find solution. It is always best to strive for the best decisions? There may not be the Probably not shooting for perfect solutions cann freeze decision makers into inaction. They also might be fear of making wrong decision.When gathering data and information...

References: 1. James Reason (1990). Human Error.Ashgate. ISBN 1840141042.
3. Isabel Briggs Myers|Myers, l (1962) Introduction to type: A description of the theory and applications of the Myers-Briggs type indicator, Consulting Psychologist Press, Palo Alto Ca., (1962)
5. Blackhart, G. C.., & Kline, J.P. (2005). Individual differences in anterior EEG asymmetry between high and low defensive individuals during a rumination/distraction task. Personality and Individual Differences, 39, 427-437.
9. Richard L. Daft. New Era Of Management 10th edition, Thomson, (2005), pp 237-258.
10. Heinz Weirich and Harold Koontz. Management: A Global Perpective. 11th edition. McGrow Hill, (2005): pp144
12. Robert N. Lussier, Management Fundamentals: Concepts, Applications, Skills development, Thomson, (2005): pp 115-118,123-126,134,168.
14. Herbert. A Simon, The new science of management decision, harper and bow, (1960):pp5-6
16. Herbert A. Simon, Making management decisions: the role of intuition and emotion academy of management executive, (1987):pp57-64
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