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When there are hard and fast "criteria" (as opposed to "objectives"), it is useful to screen out alternatives that do not satisfy the criteria. For example, alternatives for a decision may be required to be "technically feasible." Alternatives tha...
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Qualitative judgments are subjective judgments based on factors or information that can't be easily or accurately quantified. The importance of objectives, which is by definition subjective, is a qualitative judgment. The anticipated performance...
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Engaging stakeholders and subject matter experts increases participation . As people feel more engaged with decision-making and planning, they will also feel more motivated . Both increased participation and motivation can further lead to ...
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Iteration is the act of repeating a process to generate a sequence of outcomes, with the aim of approaching a desired goal, target, or result. Each repetition of the process is also called an iteration . The results of one iteration are used as...
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Overconfidence is the tendency to overestimate our ability to make good decisions. Research 1 indicates that the more experience a manager has, the more likely it is that he or she will be overconfident in making decisions. Therefore, awareness o...
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Satisficing is a decision-making strategy that aims for a satisfactory or adequate result rather than the optimal result, because aiming for the optimal solution may necessitate needless expenditure of time, energy and resources. 1 A combinatio...
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Compensatory decisions are rational decisions. In compensatory decisions, poor performance of alternatives with respect to some objectives can be overcome with excellent performance with respect to other objectives. For instance, a plane ticket th...
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Perhaps the most common "formal" approach to making a choice among alternatives is to list the pros and cons of each alternative. Certainly it would be wrong to calculate the net number of pros over cons for each alternative and then select the alt...
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A major challenge of almost all organizations today is finding a way to integrate the knowledge and expertise of their personnel in decision making and forecasting. In The Wisdom of Crowds, 1 James Surowiecki shows that under certain conditions ...
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Intuition alone is not sufficient for making complex, crucial decisions. The human brain is limited, in both short-term memory capacity and discrimination ability, to about seven things - plus or minus two. Decision-making for every complex, cruci...