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Decision Making

Decision Making

Decision-making is a fundamental cognitive process that involves evaluating alternatives and selecting among them. This process can range from simple choices, such as deciding what to wear, to complex decisions, like choosing a major in college or a career path. The complexity of the decision often dictates the approach we use, which can be broadly categorized into two types: automatic and controlled decision-making.
Automatic decision-making is fast, intuitive, and relies on gut feelings...

Decision Making: Traditional Method

Decision Making: Traditional Method

The process of hypothesis testing based on the traditional method includes calculating the critical value, testing the value of the test statistic using the sample data, and interpreting these values.
First, a specific claim about the population parameter is decided based on the research question and is stated in a simple form. Further, an opposing statement to this claim is also stated. These statements can act as null and alternative hypotheses, out of which a null hypothesis would be a...

Decision Making: P-value Method

Decision Making: P-value Method

The process of hypothesis testing based on the P-value method includes calculating the P- value using the sample data and interpreting it.
First, a specific claim about the population parameter is proposed. The claim is based on the research question and is stated in a simple form. Further, an opposing statement to the claim is also stated. These statements can act as null and alternative hypotheses: a null hypothesis would be a neutral statement while the alternative hypothesis can have a...

Heuristics

Heuristics

Heuristics are problem-solving strategies that use mental shortcuts to simplify decision-making. Unlike algorithms, which must be followed precisely to achieve a correct result, heuristics offer a general problem-solving framework. They save time and energy but can sometimes lead to less rational decisions.
People often rely on heuristics when faced with an overload of information, limited time, low importance of the decision, limited information, or when a heuristic readily comes to mind. For...

Reason and Intuition

Reason and Intuition

The human brain processes information for decision-making using one of two routes: an intuitive system and a rational system (Epstein, 1994; popularized by Kahneman, 2011 as System 1 and System 2, respectively). The intuitive system is quick, impulsive, and operates with minimal effort, relying on emotions or habits to provide cues for what to do next, while the rational system is logical, analytical, deliberate, and methodical. Research in neuropsychology suggests that the brain can only use...

The Anchoring-and-Adjustment Heuristic

The Anchoring-and-Adjustment Heuristic

In order to make good decisions, we use our knowledge and our reasoning. Often, this knowledge and reasoning is sound and solid. However, sometimes, we are swayed by biases or by others manipulating a situation. For example, let’s say you and three friends wanted to rent a house and had a combined target budget of $1,600. The realtor shows you only very run-down houses for $1,600 and then shows you a very nice house for $2,000. Might you ask each person to pay more in rent to get the $2,000...

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Administrative decision making: a stepwise method.

Reid M Oetjen¹, Dawn M Oetjen, Timothy Rotarius

¹Department of Public Health, College of Health, University of North Florida, 1 UNF Drive, Jacksonville, FL 32224, USA. roetjen@unf.edu

The Health Care Manager

|May 31, 2008

Summary

This summary is machine-generated.

Healthcare managers need new decision-making approaches to navigate complex challenges. This article presents an administrative decision-making model to improve organizational success and avoid common pitfalls.

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Area of Science:

Healthcare Management
Organizational Decision-Making

Background:

Healthcare organizations face significant challenges and competition, impacting daily managerial decisions.
Existing decision-making methods are insufficient for complex, rapidly evolving healthcare environments.
Effective decision-making is crucial for organizational success and quality of care.

Purpose of the Study:

To examine the managerial decision-making process in healthcare.
To propose a new administrative decision-making model for healthcare managers.
To provide a template for navigating complex healthcare challenges and improving organizational outcomes.

Main Methods:

Review of traditional decision-making limitations in healthcare.
Development of a conceptual administrative decision-making model.
Analysis of the model's potential to address common decision-making pitfalls.

Main Results:

Traditional methods are inadequate for modern healthcare complexities.
The proposed administrative decision-making model offers a structured approach.
The model aims to guide managers toward successful organizational navigation.

Conclusions:

Healthcare managers require updated decision-making strategies.
The administrative decision-making model can enhance managerial effectiveness.
Implementing this model can lead to improved organizational performance and success.