MHR 405 Lecture Notes - Lecture 9: Subjective Expected Utility, Tacit Knowledge, Mental Models
5 Dec 2016
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Document Summary
Decision-making is a vital function for an organization"s health and team success and also plays an essential part in our everyday lives as individuals. It involves choosing from a number of alternatives to achieve a desired result. Each alternative identified throughout the process should be carefully assessed in order to ensure that the final outcome produces the highest value for the organization or team. The process of decision-making is cyclical in nature and shows a systematic process that is necessary to arrive at a decision that yields the highest subjective expected utility. Employees are encouraged to carry out each step with efficiency to ensure that they make the best decisions that produce the highest result. This theory can help us understand why different people have different approaches to decision-making. Some of us prefer to use logic more than others. For some, personal values play a stronger role.
