Decision making in the organization 2600-MSMz2PDO
The lecture informs the students about the process of decision-making at the individual, group, organizational, and societal level.
The methods and conditions of decision-making are described. Both the explanatory and the normative research traditions are covered.
Specific issues include:
1. The subject and method of decision-making theory and research, language of the discipline, explanatory and descriptive approaches; levels of analysis.
2. Anatomy of the decision-making process: the idea of rational choice, values, preferences, goals, multigoal choice, multiattribute choice, logic of consequences vs logic of appropriateness. Decision-making models.
3. Factors affecting the decision-making process: decision-maker attention as a resource; optimal decision, satisfactory decision. Dealing with cognitive barriers. Irreversibility of the decision vs the cognitive dissonance. Decision-making under certainty.
4. Individual decision-making under risk: expected value, subjective expected value, expected utility, perspective theory, risk management. Heurstics and biases in decision making.
5. Individual decision-making under uncertainity: maximin, Hurwicz criterion, Savage’s criterion.
6. Decision-making in groups: advantages and disadvantages in group decision-making. Groupthink syndrom, shifting of the accepted risk threshold.
7. Decision-making in groups: methods of making decision involving multiple actors.
8. Multiple decions-makers in organizations: conflicts and politics. Social bases of divergent interests. Building interests’ alignment.
9. Methods for multiattribute decision-making: Simple Multi-Attribute Rating Technique (SMART).
10. Methods for decision-making under risk: Monte Carlo simulation.
11. Artificial intelligence and decision-making.
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Term 2025Z:
The lecture aims to provide attendees with knowledge about decision-making by individuals, groups, and within groups, by organizations, and within organizations, as well as at the macro-social level. In addition to discussing the factors influencing the decision-making process, the lecture will highlight methods of decision-making. The descriptive-explanatory contributions of contemporary decision theory will be complemented by the principles of normative decision theory. List and thematic scope of topics covered during the lecture: 1. The subject and method of decision theory: the language of the discipline and basic conceptual categories; the descriptive-explanatory approach and the normative approach; levels of analysis in decision-making processes. 2. The anatomy of the decision-making process: the concept of rational choice—values, preferences, and goals of the decision-maker; decision-making in situations with multiple goals; multi-criteria problems; logic of consequences vs. logic of appropriateness. Decision models. 3. Determinants of individual decision-making: the decision-maker's attention as a resource—optimal decisions vs. satisfactory decisions; overcoming cognitive limitations; the irreversibility of decisions and the reduction of decision-related dissonance; heuristics and decision traps. Decision-making under certainty. 4. Individual decision-making under risk: expected value and subjective expected utility; prospect theory; risk management. 5. Individual decision-making under uncertainty: maximin, Hurwicz criterion, Savage criterion. 6. Multiple decision-makers: advantages and disadvantages of group decision-making; phenomena in group decision-making—risk shift, Groupthink Syndrome (GTS). 7. Decisions within a group: heuristics in group decision-making. 8. Multiple decision-makers: groups and partners—conflict and politics. Social foundations of partner disagreement within groups and organizations. Building alignment of interests. Decision-making and power struggles. 9. The SMART multi-criteria decision-making method. 10. Decision-making under risk: the Monte Carlo simulation method. 11. Artificial intelligence and decision-making. |
Term 2026Z:
The lecture aims to provide attendees with knowledge about decision-making by individuals, groups, and within groups, by organizations, and within organizations, as well as at the macro-social level. In addition to discussing the factors influencing the decision-making process, the lecture will highlight methods of decision-making. The descriptive-explanatory contributions of contemporary decision theory will be complemented by the principles of normative decision theory. List and thematic scope of topics covered during the lecture: 1. The subject and method of decision theory: the language of the discipline and basic conceptual categories; the descriptive-explanatory approach and the normative approach; levels of analysis in decision-making processes. 2. The anatomy of the decision-making process: the concept of rational choice—values, preferences, and goals of the decision-maker; decision-making in situations with multiple goals; multi-criteria problems; logic of consequences vs. logic of appropriateness. Decision models. 3. Determinants of individual decision-making: the decision-maker's attention as a resource—optimal decisions vs. satisfactory decisions; overcoming cognitive limitations; the irreversibility of decisions and the reduction of decision-related dissonance; heuristics and decision traps. Decision-making under certainty. 4. Individual decision-making under risk: expected value and subjective expected utility; prospect theory; risk management. 5. Individual decision-making under uncertainty: maximin, Hurwicz criterion, Savage criterion. 6. Multiple decision-makers: advantages and disadvantages of group decision-making; phenomena in group decision-making—risk shift, Groupthink Syndrome (GTS). 7. Decisions within a group: heuristics in group decision-making. 8. Multiple decision-makers: groups and partners—conflict and politics. Social foundations of partner disagreement within groups and organizations. Building alignment of interests. Decision-making and power struggles. 9. The SMART multi-criteria decision-making method. 10. Decision-making under risk: the Monte Carlo simulation method. 11. Artificial intelligence and decision-making. |
Type of course
Mode
Learning outcomes
In terms of knowledge, the graduate:
K_W01. Applies advanced research methodology and terminology in the field of management and quality sciences as well as in complementary disciplines (economics and finance, legal sciences).
K_W02. Analyzes complex processes and phenomena occurring in various types of organizations and their surrounding environment. Utilizes management theory and complementary disciplines (economics and finance, legal sciences) to identify, diagnose, and solve problems related to key organizational functions (operations, marketing, finance, human resource management) and their integration within the organization's strategy.
In terms of skills, the graduate:
K_U02 The student is able to interpret complex decision-making processes at the individual, group, and organizational levels, taking into account social, economic, technological, and political factors. They understand the impact of conditions such as risk, uncertainty, heuristics, and conflicts of interest on the functioning of organizations and the economy, and can analyze both descriptive and normative decision-making models.
K_U06 The student is able to independently and collaboratively prepare analyses and reports on decision-making problems (e.g., under conditions of risk and uncertainty, using methods such as SMART or Monte Carlo simulation), and clearly present and discuss them with diverse audiences, also in English, using advanced information and communication technologies.
Assessment criteria
Egzamin testowy z zadaniami (in-class or remote exam), ocena aktywności podczas zajęć
Bibliography
Basic literature
Goodwin, P. i G. Wright (2016) Analiza decyzji. Wydawnictwo Nieoczywiste
Additional literature
Tyszka, T. (2010) Decyzje. Perspektywa psychologiczna i ekonomiczna. Scholar: Warszawa
Klein, G. (2011) Sztuka podejmowania decyzji: dlaczego mądrzy ludzie dokonują złych wyborów. OnePress: Gliwice
Kahneman, D. (2012). Pułapki myślenia. O myśleniu szybkim i wolnym. Poznań: Media Rodzina.
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Term 2025Z:
Basic literature Extended literature |
Term 2026Z:
Basic literature Extended literature |