Managerial Decision Making: Concepts and Theories

Running Head: Managerial Decision Making
Managerial Decision Making
Name of the Student:
Name of the University:
Author’s Note

1MANAGERIAL DECISION MAKING
The concept and theory, which was significant and important to me, was the week 5
lecture. In the subject Critical thinking and Managerial decision-making the discussion is
comprised of important points about the course, concept of innovation and decision,
interpretation of DISC results and Introduction to Self Reflection. The concept and theory
teaches about the decision making which can be reflected as the course of action which has an
action purpose chosen from the set of alternatives in the organizational or managerial decision
making objectives or goals. The process can be illustrated as the process of continuous and
indispensable constituent of managing the organization or any activity related to the business.
With the reflection of the Game theory that defines the discussion from the week lectures
explains about the process of modeling which is strategic, interactive between more than two
people or players in a particular situation which contains a set of rules, regulation and outcomes
(Wang et al., 2015). The concept of game theory is used in a number of discipline and is notably
a tool of study that is comprised with the concepts of economics. With the common example of
the game theory it explores the possible outcomes of the particular situation in which more than
two competing groups look for the study of action which becomes the best benefits for them. The
variables does not change so each of the actions are the outcome that is derived from the
amalgamation of similar action by each parties. With the lesson learnt from the lecture the
working of the theory is base on the basic level. Game theory explains the study of how people,
organization or nation determines the strategies in different situation in the face of opposing
strategies acted by some other agent and player. The theory gives importance to the rational
decision each time (Fielder et al., 2014).

2MANAGERIAL DECISION MAKING
The concept, which I had identified, is the related to the concept of conclusion and
innovation from the week 5 lecture. The theory is based on the ideas that is segregated into 5
elements. The five elements are facts, observation, experience, assumption and beliefs. After the
functioning of all the five elements in the theory the conclusion is drawn from it. In the following
theory the conclusion is based on the decision making which is also not sufficient when
innovation comes in the limelight and it focuses on true creative outcome (Anderson, Potočnik &
Zhou, 2014). The concept of innovation and creativity can be explained as providing a new and
modified conclusion by obtaining a positive result such as customized process which is a fresh
product and has a different marketing approach and different ways of handling a customer call.
In this situation it requires more of paradigm changes that is needed to make. The part of
conclusion is dealt with the innovation that is something which in most of the people can identify
with the right effort and mindset (Somech & Drach 2013).
The second concept that is important and significant to me is the concept of Deductive. The
concept of deductive approach explores a theory that is related to the phenomenon and test if in
any case the theory is valid or not and in case the theory is valid or not. It has been noticed that
the theory is deductive in approach by following the path of the logic in a close manner. The
reasoning of the theory begins and leads to a new hypothesis. The theory begins from the
involvement of a theory that is collection from the theory, developing from the hypothesis that is
present in the theory and lastly by the collection and analysis of data testing. The approach of
the deductive research can be employed together by understanding the topic that the researchers
wants to study (Dawson & Andriopoulos, 2014).

3MANAGERIAL DECISION MAKING
There are some possible advantages that is attached to the theory of deductive that is the
possibility to explain the casual relationship between the variables and the concept. Secondly the
advantage that is clinged to the factor of the research is that the possibility to measure the
concept of the quantitatively. Lastly, the possibility to generate the research in findings that is
stuck to a certain extent. The theory explains the approach that is always stated with the fact of
reasoning and that further leads to a new hypothetical situation. From learning the concept of
deductive theory the hypothesis is the test that confronts with the observation which further leads
to confirmation or rejects the hypothesis (Kell et al., 2013). Therefore it can be said that the
concept explains about the reasoning from the point of general to a particular inductive
reasoning.