Decision Making Condition & Example

1.1 Introduction

Decision Making is very important thing that we do in everyday lives. According to Harris, R (2010), decision making is the study of identifying and choosing alternatives based on the values and preferences of the decision maker and making a decision implies that there are alternative choices to be considered. In addition, we are not on to identify as many of those alternatives as possible but to choose the one that has the highest probability of effectiveness. Just as there are different types of decision, there are also different approaches to decision making that are appropriate in different situation. Some decisions are made logical and rational thinking, while others are made using experience and sometimes based on the performance of a practiced skill. Decision making also can be described as the act of choosing one alternative from among a set of alternatives available. The decision making process includes recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative, and putting it into practice.

In the decision making environment, there are three categories that is decision in certain condition, in uncertain condition and also in risky condition. The certain condition in making decision is where we have confidence and belief to get the best outcome in a single answer. The decisions maker also have to gain the comprehensive information regarding the situation occur in order to assist in his/her decision making. Meanwhile, uncertain condition in making decision is when the decision maker does not have knowledge of information where it is impossible to accurately describe for future outcome, more than one possible outcome. The decision maker also needs to have a high tendency towards risks to make the decision. Risky condition in making condition is where the decision maker has very limited of information and as a result, it is hard for them to predict the outcome. This risky

References: Geoffrey Churchill, Thomas Whalen. (1999). Robinson College of Business Georgia State University: Decisions under Uncertainty. Retrieve at http://www2.gsu.edu/~dscthw/8350/decis-w.pdf [16 November 2012] Harris, R Harold Kerzner. (2009). Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Tenth Edition. John Wiley & Sons Publisher. [5 November 2012] Hossein Arsham John F. Bukawski. (2012). Quantitative Reasoning, by Alicia Sevilla and Kay Somers, ISBN 1-931914-90-7 . Retrieved at http://jcsites.juniata.edu/faculty/bukowski/ma103/topic11.htm [4 November 2012] Keltie, Denise Kiker G.A. et al. (2005). Application of Multicriteria Decision Analysis in Environmental Decision Making. Integrated Environmental Assessment and Management, 1(2), pp. 95–108.[4 November 201] Martin T Rowe, W. (1988). An Anatomy of Risk. R.E. Krieger Publishing Company [10 November 2012] Shahrul Aman Ahmad Sharaf N. Rehman.(2012). Decision-making Under Conditions of Uncertainty: The American Association of Behavioral and Social Sciences Journal.(The AABSS Journal, 2012, Volume 16).[5 November 2012]