University of Phoenix Online
Lee Phares, Facilitator
Decision Making Model Analysis Paper
There are several different decision making models that one can choose from when deciding on a model to use for their business.
Multivariable decision-making model. Decision-making is supported by many things, including models, analysis, and computer tools. The use of technology can help in making good decisions that are goal oriented and analytical. Decision-making is based on many factors including internal and external aspects. There are many choices to be made and these must be fit together to make good decisions. Long-term decisions impact process change, functional process and maintenance, safely, performance, costs, organizations and the human factors. Short-term decisions impact the daily actions and the risks involved. Decision analysis gives facts and alternatives and the information can then be evaluated by other approximation methods and their safety is calculated according to the Probability Safety Assessment (PSA).
1- Structure problem and identify decision alternatives.
2- Define objectives
3- Define performance or variables
4- Identify variables
5- Probability assessment.
6- Specify value judgment, preference, and trade-off.
7- Evaluate alternatives action or policy
8- Conduct sensitivity and value analysis.
Tree-shaped, multivariable decision-making model. This model is used for solving difficult problems with minimized costs and risks with maximized benefits. The tree illustrates change and decisions and has a limited amount of variables. The decision making process has many phases. Start out with a current situation (unexpected or expected behavior), which is impacted, by the situation at hand and the changing world around us and then we through in the external noise and the internal noise. Now we have a multitude of information, social, cultural, economical and
References: http://herkules.oulu.fi/isbn9514257855/html/chapter4_2.html, 4.2 Decision-making models, 2000, Oulu University Library retrieved from Internet 11/18/2006 http://www.instituteforstrategicclarity.org.dmp.htm, The Decision Making Process Map, 2001-2004, retrieved from the Internet 11/18/2006