Decision-making process

The title of this article is ambiguous. Further meanings are listed under Decision-making procedure (definition of terms ) .

A decision-making process can be described as a process of information acquisition and processing ; The terms decision-making process , decision-making approach or decision theory are often used synonymously . A fundamental distinction is made between

1. quantitative (mathematical) ( see below ) and empirical methods ( see below ) as well as
2. unipersonal and multi-person decisions ( see below ).

In economics in particular , two concepts of decision theory can be distinguished according to origin, objective, form and suitability, namely again the quantitative ( mathematical ) and the empirical decision-making process.

Quantitative (mathematical) method

The core of the quantitative (mathematical) procedure is to systematize organizational design decisions and to lead to a correct or incorrect solution using mathematical models.

The quantitative decision theory starts from "well-structured" decision problems and the axiom of rationality and develops solution methods for typical problem situations. It is therefore important to filter out from a set of possible actions that which is best suited for the given goal. However, it is not questioned whether the people involved actually act rationally or not.

The following aspects dominate in quantitative decision theory:

• Calculus (stands for model and logic )

Questions relating to the mapping and transferability of real facts in a formalized language and their conclusiveness should be clarified.

• Optimization (stands for relative maximization)

Here it is necessary to answer questions about the type, the design and the relationship between target parameters and limited secondary conditions, including their functional linkage and representation.

• Probability (stands for stochastics )

Questions regarding the assessability and quantitative representation of opportunities or risks of planned actions need to be clarified. Aspects such as problem, person and process, which are central in empirical decision theory, are not taken into account. In reality, the models, processes and solutions offered by quantitative decision theory are often too unrealistic (too easy) or too complicated.

Examples:

• Analytic hierarchy process

Empirical decision-making process

The empirical decision-making process is based on the view of human behavior and draws on the content and methodological knowledge of psychology . The focus is on aspects such as problems, people and processes, as well as their interrelationships (e.g. interests or commitment).

It wants to describe and explain how decisions are made in reality, but also takes into account how goals are formed and changed during the decision-making process. Empirical decision theory, too, seeks to limit itself to the most essential and meaningful features, which is why a type of modeling is also given here.

"The empirical decision theory sees its task in finding empirically substantive hypotheses about human decision-making and problem-solving behavior."

Above all, it deals with research and justification interests such as objects of investigation, questions and efficiency conditions. Research methods such as observations, surveys and experiments are used to obtain the necessary knowledge of the actual decision-making behavior.

Personal decisions

Personal decisions are divided into:

• Decisions made by university staff in which one person carries out the decision-making activities in isolation - even if the actions of other people are involved.

• multi- person decisions in which more than one person is involved in a single decision-making process. They are also called group decisions and are presented in social choice theory .

University and multi-person decision-making situations do not always have to remain constant. If individual decision-makers in unipersonal decision-making processes decide to solve a problem together (multi-personal), the process becomes multi-personal. Groups of people who are involved in a multi-person decision-making process are also called groups , teams or collective .

See also

• Decision maker
• Personnel selection

literature

• Georg Schreyögg: Organization. 4th edition. Gabler, Wiesbaden 2003, ISBN 3-409-47729-2 .
• Günter Sieben, Thomas Schildbach: Business decision theory. 3. Edition. Werner, Düsseldorf 1990, ISBN 3-8041-3151-4 .
• Rolf Bronner: Planning and decision. 3. Edition. Oldenbourg, Munich / Vienna 1999, ISBN 3-486-24628-3 .
• Egbert Kahle: Operational decisions. 4th edition. Oldenbourg, Munich / Vienna 1997, ISBN 3-486-23493-5 .
• Rudolf Grünig, Richard Kühn: Decision-making procedures for complex problems. 2nd Edition. Springer, Berlin a. a. 2006, ISBN 3-540-29582-8 .
• Günther Bamberg, Adolf Gerhard. Coenenberg, Michael Krapp: Business management decision making. 15th edition. Franz Vahlen, Munich, ISBN 978-3-8006-4519-0 .

swell

1. ↑ Seven, p. 3.