Decision Making is the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities.
The reason why the father wished to close down the branch was that it appeared to be making a loss. However, it is quite the reverse; if the branch was closed then, the positive contribution from the branch would be lost and overall profits would fall. This is because the indirect costs of production do not vary with output and, therefore, closure of a section of the firm would not lead to immediate savings.
This may mean that closing the branch would be a mistake on financial grounds. This mistake is made due to a misunderstanding of nature of cost behavior. If the branch is closed then the only costs that would be saved are the costs directly related to the running of the branch: The costs are indirect in nature, in this example the marketing and central administration costs, would still have to be paid as they are unaffected by output.
For this decision to be made, we should use contribution as a guide for deciding whether or not to close a branch.
This can also be applied to the production of certain product lines, or the cost effectiveness of departments. On financial grounds, contribution is therefore, a better guide in making decisions.ABSTRACT.
This paper offers a critical review of the theoretical literature on the relationship between the production of scientific knowledge and its use in policy formulation and implementation. Although problem solving and decision making are different processes, it is often necessary to combine them when making a complex decision.
Systematically incorporating problem-solving and decision-making tools can help you make fully-informed decisions, either individually or as part of a group. Hca Approaches To Decision Making Paper Approaches to Decision making Kimberly Williamson HCA/ June 14, Instructor Melodie Griffin Scenario 2 I chose the Nursing home Scenario It can be very difficult even for managers to make the appropriate monstermanfilm.com working in a nursing home, we had a similar scenario.
The three different approaches to making decisions reflected in this activity form the core of our discussion of decision making. Philip Tetlock () identifies three competing metaphors employed for understanding human decision making. Participation in social science refers to different mechanisms for the public to express opinions – and ideally exert influence – regarding political, economic, management or other social decisions.
Participatory decision-making can take place along any realm of human social activity, including economic (i.e. participatory economics), political (i.e.
participatory democracy or parpolity. Effective Modeling for Good Decision-Making What is a model? A Model is an external and explicit representation of a part of reality, as it is seen by individuals who wish to use this model to understand, change, manage and control that part of reality.