Research Report #9
Decision Making Theories

There are Millions of Them

Because decision making is involved constantly in most of our activities, there are literally millions of decision making theories. So the problem is to isolate the most important ones that involve our basic activities and are based on good analysis.

I have abstracted from the literature and present on this site many basic decision making theories. Those which follow are presented elsewhere on the site and are summarized here.

Decision Making Theories - Most Important Ones to Remember

Decision Making Theory #1 - Decision making is the process of making choices among competing courses of action as described on the first page of the Research Report section titled Introduction to Decision Making.

Decision Making Theory #2 - The most reliable process of making choices has been found to be the scientific method, as it is also the complete method of creative problem solving and decision making.

Decision Making Theory #3 - The best researched model formula for decision making is the scientific method (SM-14) consisting of eleven mental activity steps or stages (usually accompanied by physical activities) and three supporting ingredients.

Decision Making Theory #4 - A well-trained decision maker uses the following in the process of complex decision making:

Other Decision Making Theories Expounded on this Website

Throughout this website, you will find different decision making theories including theories about each stage or step of decision making and the three supporting ingredients are explained in detail.

A Few Decision Making Theories Often Mentioned in the Literature about Decision Making:

Rational Decision Making

"Rational" people make decisions in this theory based on the optimal choice of greatest benefit to them.

Tradeoffs

Tradeoffs are often involved in decision making. To obtain one thing we want, we may have to sacrifice one or more things we want.

Biases

Managers are often overoptimistic about the outcome of projects. We choose people and actions that please us.

Behavior Decision Making Psychology

We all have different personal attributes, characteristics, and ways of thinking that affect our decision making. Be sure to read the page with the above title in my booklet.

Resistance to Change

People in most cases resist radical change.

Normative and Descriptive Questions

Normative decision making analysis involves the nature of rationality and logic of decision making. The descriptive analysis, unlike the normative, covers peoples' beliefs and preferences as they are rather than as they should be.

Conclusion

Many decision making theories are simple and easy to understand. However, our academic community has developed a "science" of decision making in which they discuss some very complex decision making theories. Textbooks on the subject and internet articles under "decision making theories" cover them for those interested.