What is Decision Theory Approach?
Decision Theory Approach in management is an approach that helps the manager to take the right decision with the logical term. The Decision Theory of management founded by Herbart Simon to looks management process as a decision making process. At the time of making this approach, the manager will identify the uncertainties that will affect the business.
Steps of Decision Theory Approach
- Recognize and Identify the decision situation
Before taking any decision the manager should know and understand the situations that will create after taking the decision.
- Identify Alternatives Solutions
The Manager should also identify the alternative solution of decision that may help the Manager in the future.
- Evaluate Each Alternative Solutions
After identifying the alternative solutions the manager should evaluate each solutions because when the manager evaluate alternative solutions. It helps to come at effective solutions.
- Implement Alternative Solutions
The final step is to Implement alternative solutions to examine the decision. Then the manager should take the final and make sure the final outcome.