Research Methods for Strategic Managers to Aid in Decision Making
Abstract [P1]
Managers can be trained to make better decisions. They also need a supportive environment where they won’t be unfairly criticised for making wrong decisions and will receive proper support from their colleague and superiors. A climate of criticism and fear stifles risk-taking and creativity; managers will respond by ‘playing it safe’ to minimise the risk of criticism which diminishes the business’ effectiveness in responding to market changes. It may also mean managers spend too much time trying to pass the blame around rather than getting on with running the business.
The study is based on all-embracing research to assemble information from a variety of sources such as internet, interview and books. The research was conducting on the decision making in the different economic scenario data was collected and results were evaluated.
Introduction [P1] [1.1]
Some decisions are difficult because of the need to take into account how other people in the situation will respond to the decision that is taken. The analysis of such social decisions is more often treated under the label of game theory, rather than decision theory, though it involves the same mathematical methods. From the standpoint of game theory most of the problems treated in decision theory are one-player games (or the one player is viewed as playing against an impersonal background situation). In the emerging socio-cognitive engineering the research is especially focused on the different types of distributed decision-making in human organizations, in normal and abnormal/emergency/crisis situations.
The signal detection theory is based on the Decision theory. Other areas of decision theory are concerned with decisions that are difficult simply because of their complexity, or the complexity of the organization that has to