Decision-Making Theory 2600-MSEM2TPD
1. Anatomy of decision making process, idea of rational choice: values, preferences and objectives of decision maker. Decision choice in multiobjectives situations. Multicriteria decision problems. Axiomatic decision theories. Consequential logic vs. logic of appropriatness
2. Individual decision making – basic models of decision processes: attention of decision-maker as a resource – optimal, satisficing, favorite
(a priori), recognized decision. Coping with informational constraints. Irreversibility of choice and dissonance reduction. Heuristics and decision traps
3. Decisions under risk: Expected Value (EV), Subjective Expected Utility (SEU), Prospect Theory. Managing risk.
4. Decisions under ignorance and Game Theory: Criteria of choice. Criterium of selecting appropriate criterium (metacriterium). Player’s orientations. Applications of model in management.
5. Many decision makers – limitations of rationality in group decision making: Risky shift. Groupthink Syndrom.
6. 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.
7. 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).
8. Decision making styles in organizations: analytical style and bargaining. Rationality of choice vs. rationality of action.
9. Determinants of political decision making - Public choice.
Type of course
Prerequisites (description)
Learning outcomes
Developing two basic competencies - analysing of real decision situations and making choices and implementing decisions - due to interdisciplinary analysis of determinants of effective decision making
Assessment criteria
written test
Bibliography
Before-class readings:
1. Klein Gary, 2011. Sztuka podejmowania decyzji, Warszawa: One Press
2. Kukułka K., 2000. Decyzje menedżerskie w teorii i praktyce zarządzania, Warszawa: Wydawnictwa Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
3. Ramus M. i Szczepankowski P. (w:) Kożmiński A.K, i Piotrowski W. (red.),2000, Zarządzanie, teoria i praktyka, wydanie V i późniejsze Warszawa: Wydawnictwo Naukowe PWN
4. Strategor., 1995. Strategie, struktury, decyzje, tożsamość, Warszawa: PWE
5. Straffin P.D., 2004. Teoria gier. Warszawa: Wydawnictwo Naukowe SCHOLAR
6. Tyszka T., Zaleśkiewicz T., 2001. Racjonalność decyzji. Pewność i ryzyko, Warszawa: PWE
Additional readings:
7. Bernstein P.L., 1997. Przeciw bogom. Niezwykłe dzieje ryzyka, Warszawa: WIG-Press
8. Buchanan J.M., Congleton R.D. 1998. Politics by Principle. Not Interest, Cambridge: Cambridge University Press
9. March, J.G., OlsenJ.P., 1976. Ambiguity and Choice in Organizations. Bergen-Oslo: Universitetsforlaget
10. Sosnowska S., (red.) 1999. Grupowe podejmowanie decyzji, Warszawa: Wydawnictwo Naukowe SCHOLAR
11. Szapiro T., 1993. Co decyduje o decyzji, Warszawa: PWN
Additional information
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