Decision-Making Theory 2600-DSMw2TPD

1. Subject and methodology of decision making theories: Language and basic concepts; descriptive and prescriptive approaches; levels of analysis of decision processes.
2. Anatomy of decision making process, idea of rational choice: values, preferences and objectives of decision maker; decision choice in multiobjectives situations; multicriteria decision problems; consequential logic vs. logic of appropriatness
3. Determinants of individual decision making – basic models of decision processes: attention of decision-maker as a resource – optimal, satisficing, favorite
(a priori), recognized decision; coping with constraints; irreversibility of choice and dissonance reduction; heuristics and decision traps
4. Decisions under risk: Expected Value (EV) and Subjective Expected Utility (SEU); prospect theory; managing risk.
5. Decisions under ignorance and Game Theory: Criteria of choice. Criterion of selecting appropriate criterion (metacriterion); player’s orientations; applications of model in management.
6. Many decision makers – group decision making - pro and contra limitations of rationality in group decision making: risky shift. Groupthink Syndrom.
7. Many decision makers: groups and teams – conflikt and politics. Social bases of inconsistencies in group and in organization; creating consistency of interests. Decision and power struggle.
7. Many decision makers – analytic methods achieving consistent preferences: Nominal group technique, Majority rule, Minimising deviations, Modified Delphi technique; Criteria of selecting appropriate method - accurate vs. effective choice.
8. Decision making in organizations: Typology of decisions in organization; Organization as monolith. Organization as “organized coalition” (behavioral theory of the firm). Organization as "organized anarchy" („garbage can” model of organizational choice).
9. Managing conflict situation in organization: analytical style and bargaining; symbolic conversion of styles; rationality of choice vs. rationality of action.
10. Societal determinants of individual, group and organizational decision making: Patterns of culture. Public choice. Logic of appropriatness – explanation of political decision making.