Application of decision making Paper 2022

Running head: APPLICATION OF DECISION MAKING
Application of decision making
Name of the Student
Name of the University
Author note

APPLICATION OF DEC ISION MAKING1
Introduction
The cognitive process that results in selection of series of action or beliefs amongst the
other available possibilities is known as decision making. It is done based on preferences, beliefs
and values of an individual that vary accordingly from person to person. There is a final choice
always associated with every decision making. It can again change accordingly if needed
depending on the person (Gigerenzer, 2015.) Generally, there are seven steps associated with
decision making, which is first identifying the topic where decision is to be made, gather the
relevant information associated with it, identify all the available alternatives, weighing all the
evidences, choosing any a suitable option among the alternatives, taking the required action and
last but not the least reviewing the decision and all the consequences (Friedrich, 2017.) This
paper aims to study the application of decision making and the rational behavior of an individual
associated with taking up a decision.
Discussion
Furthermore, as per (Beach & Liphitz) there is a theory associated with decision making.
The study of choices made by an agent or individual is termed as Decision Theory. Technically,
the theory of decisions can be divided into other two branches. One is the normative decision
theory while the other is descriptive decision theory. On one hand, the normative decision theory
deals with analyzing the outcomes of already taken decisions or determining optimal decisions
that give assumptions or constraint. The practical aspect and application of such perspective
approach aims towards finding methodologies, software for supporting system of decisions and
tools for helping out people in making better decisions. Whereas on the other hand, the
descriptive decision theory deals with analyzing how an agent or individual actually makes

APPLICATION OF DEC ISION MAKING2
decisions that they take. It is a very positive approach that more concerns about describing the
observed behaviors that is often taken under assumption that individuals are behaving in a way
for making decisions under any consistent rules (Birkland, 2015.)
According to (Zsolnai, 2017) over past decades, the scholars in field of interdisciplinary
course of decision making and judgment have gathered trove of theories, prescriptions and
findings regarding all the processes enacted by ordinary people when they make choices or
decisions. The quote of Simon says, “The capacity of the human mind for formulating and
solving complex problems is very small compared with the size of the problems whose solution
is required for objectively rational behavior in the real world or even for a reasonable
approximation to such objective rationality.” A statement with such a tone is beyond any doubt
speaks about a concept that rationality is firmly bounded associated with the concept of Simon
whenever decision making is a concern. Without a ration choice, an administrative theory or
organization cannot exist. The behavior of human beings is any organization is described best as
“intendedly rational”. This merits the description of human behavior more vividly than any other
section. Theory of rational choice can be concluded that it hardly will exist without any theory of
organization. A man and his characteristic environment is not only constituted with nature but
also with his fellows (Frantz & Marsh, 2016.)
It can be said that when decision making is concerned, the person must act as an
executive staff of any concerned business. Incorporating considerations that are organizational
into any theory of a rational choice is a task that needs to get completed. There are three discrete
concepts of decision making that helps to understand the theories associated with it and how that
helps an individual in decision making. The principle of bounded rationality includes all the
required concepts needed while making optimized decisions. Although this is not practically