ADMS 3930 Lecture Notes - Lecture 6: Multivariate Statistics, Decision Rule, Delphi Method

• School: York University
• Department: Administrative Studies
• Course: ADMS 3930
• Professor: Randy Hoffman

Document Summary

Decision-making the process of choosing a solution from available alternatives. Rational decision-making a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. Managers who diligently complete all six steps of rational decision-making model will make (cid:271)ette(cid:396) de(cid:272)isio(cid:374)s tha(cid:374) those (cid:449)ho do(cid:374)"t. To make perfect decision, they have to operate in perfect worlds with no real-world constraints. Common decision-making mistakes: overreliance on intuition, availability bias, representative bias, and anchoring and adjustment bias. Managers make better decisions by using decision rules, multivariable testing, decision software, and by avoiding common post-decision-making error called escalation of commitment. Decision rules: decision rule set of criteria that alternative solution must meet to be acceptable to the decision maker. Staying rational: decision software: decideright is a program that automatically rank alternatives and generates report with charts and tables that explain why and how the decision was made. It is time-consuming, labour-intensive, and expensive process, best reserved for important long-term issues and problems.