Decision Making & Problem Solving in Business
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Decision Making and Problem Solving
Defining the Process
Problem Solving: Identifying the difference between the actual and desired state of affairs, and taking action to resolve the difference.
Decision Making: Defining the problem, identifying alternatives, determining criteria, evaluating alternatives, and choosing an alternative.
Types of Decision Problems
Single-Criterion Decision Problem: Finding the best solution based on one criterion.
Multicriteria Decision Problem: Finding the best solution considering multiple criteria.
Key Concepts in Decision Making
Decision: The selected alternative.
Model: A representation of a real object or situation.
- Iconic Model: A physical replica of a real object.
- Analog Model: A physical representation, but doesn'