Normative theories are concerned with how we should or ought to reason, make judgements and take decision over, 2004. This text attempts to reflect some of the diversity of the subject. Section 2 theories of judgement, decisionmaking and choice. Pdf this paper compares a number of theoretical models of decisionmaking with the way in which senior managers make decisions in practice. Rational decision making descriptive and normative decision making theories possess distinct characteristics and follow speci. However, some central themes emerged, such as the importance of sensitivity to the decisionmaking context, attention to the presentation of information, and the use of intuition. If these established principles can be accepted, then it is possible to derive. Nevertheless, in spite of suchargumentsagainstfollowing a classical factorialdesignstrategyinitially in doingresearchonhumanproblem. The theories and models underpinning strategic decisionmaking sdm are somewhat eclectic that demand multidisciplinary approach and appears nondifferential from decisionmaking dm theories. Theories of judgement, decisionmaking and choice theories regarding judgement, decision making and choice generally fall into two categories. Decisionmaking theories and models ejbo electronic journal of.
An interdisciplinary approach to determine how decisions are made given unknown variables and an uncertain decision environment framework. If organisations are viewed as a hierarchy of decision making and decision makers, it implies that, at different levels of the organisation, management will be concerned with different types of decision. Normative, or rational, theories of decision making are based on fundamental axioms. Decision making theory is a theory of how rational individuals should behave under risk and uncertainty. The theories and techniques for studying decisionmaking that have been developed in psychology have typically focused on welldefined decisions, and i will. The beginning of any major theory of bureaucratic behavior was instituted by max weber, the german sociologist. Prospect theory, which is concerned with making decisions involving risk or. This paper compares a number of theoretical models of decisionmaking with the way in which senior managers make decisions in practice. To the contrary, there are many different ways to theorize about decisions, and therefore also many different research traditions. Decision making is one of the major attribute of a. In terms of the use of decision support technology, the use of selfhelp tools, such as office software, was clearly favoured. Understanding the dynamics of decisionmaking and choice. Ejbo decisionmaking theories and models a discussion of.