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This process is known as decision making.
Importance in Business
The fate of any business venture is decided by the decision-making ability of the business leadership, at the helm.
In applying our knowledge of decision making andproblem solving to society-wide, or even organization-wide,phenomena, the problem of aggregation must be solved; that is,ways must be found to extrapolate from theories of individualdecision processes to the net effects on the whole economy,polity, and society. Because of the wide variety of ways in whichany given decision task can be approached, it is unrealistic topostulate a "representative firm" or an "economicman," and to simply lump together the behaviors of largenumbers of supposedly identical individuals. Solving theaggregation problem becomes more important as more of theempirical research effort is directed toward studying behavior ata detailed, microscopic level.
Making a wrong decision provokes the fear of falling.
In sum, the pattern of support for research in thisfield shows a healthy diversity but no agency with a clear leadresponsibility, unless it be the rather modestly funded programin decision and management sciences at NSF. Perhaps the largestscale of support has been provided by DARPA, where decisionmaking and problem solving are only components within the largerarea of artificial intelligence and certainly not highly visibleresearch targets.
Although a number of projects have been and arefunded by private foundations, there appears to be at present nofoundation for which decision making and problem solving are amajor focus of interest.
Don't avoid making decisions on your own.
With respect to decision-making, instead of saying that man is the creature of circumstance, it would be more accurate to say that man is the architect of circumstance.
This conditional knowledge is acquired from experience or learned and tie a flexible and highly interrelated network of links along which reasoning is possible and which can be applied to different decision making situations.
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Therefore worrying about making a decision is a waste of time.
Lastly, thinking about long term gains, instead of short term profit is what separates the visionaries from others, when it comes to decision making.
The criterion of in making good strategic decisions.
I’ll give advice about grad school if you ask me to, and I’m happy to share my experiences. But these bigger mysteries make the grad-school decision harder. They take a career conundrum and elevate it into an existential quandary. In the end, I feel just as ignorant as my curious, intelligent, inexperienced students. All I really want to say is, good luck.
Pass off responsibility of making the decision to someone else.
As recently as five years ago, the evidence wasthought to be unassailable that markets like the New York StockExchange work efficiently--that prices reflect all availableinformation at any given moment in time, so that stock pricemovements resemble a random walk and contain no systematicinformation that could be exploited for profit. Recently,however, substantial departures from the behavior predicted bythe efficient-market hypothesis have been detected. For example,small firms appear to earn inexplicably high returns on themarket prices of their stock, while firms that have very lowprice-earnings ratios and firms that have lost much of theirmarket value in the recent past also earn abnormally highreturns. All of these results are consistent with the empiricalfinding that decision makers often overreact to new information,in violation of Bayes's rule. In the same way, it has beenfound that stock prices are excessively volatile--that theyfluctuate up and down more rapidly and violently than they wouldif the market were efficient.
I see no good in having group decision makers.
This is accomplished through the phased processes of management science that dissects the components of the decision into workable elements and allows one to proceed to the decision-making stage with sound knowledge on which to base one's choice.
A business manager makes decisions.
In , written in 450 B.C., Herodotus makes the following statement:
"If an important decision is to be made [the Persians] discuss the question when they are drunk and the following day the master of the house...submits their decision for reconsideration when they are sober.
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