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The environment as a factor giving rise to psychological behaviour phenomena in people

Lecture



The behavior of the DM in making a decision is also influenced by the environment in which decisions are made. Usually this is the microclimate that develops within the organization and to a certain extent influences a person's behavior when making a decision. Among the factors describing the environment and influencing a person's behavior when making a decision, one can include: the company's attitude toward consumers, the mood, strategy and tactics of the company in achieving its goals, the company's social contribution to the development of society, the individual achievements of team members, the spirit of collectivism, the attitude toward the quality of the products manufactured, the reward system, the quality of management, and so on.

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The purpose of a decision support system is to help the decision maker, including by providing him with useful information on the methodology and specifics of decision-making. Therefore, a decision support system should, if possible, contain general methodological information related to those peculiarities of managerial decision-making that are due to the variety of models (normative, descriptive, etc.), concepts (utility maximization, bounded rationality, etc.) and strategies for making

decisions, including, for example, strategies of multi-criteria choice, as well as information related to the peculiarities of the manifestation of the psychological aspects of people's behavior in decision-making.

The decision-making process can be described by a normative model, which presupposes the availability of the relevant information and the use of already known, given rules (algorithms) for decision-making, and by a descriptive model, which presupposes a deficit or excess of information and therefore presupposes the use of certain preference rules ensuring the choice of the final decision (final alternative) from among the possible ones.

Within the framework of the models named, different decision-making concepts can be implemented, including the concept of utility maximization and the concept of bounded rationality.

The decision-making concept, as well as the preference rules and methods of calculating criterial estimates, determine the decision-making strategy as a set of rules and actions defined by these parameters.

Since within the framework of descriptive models the factor of psychological behavior is significant, the named concepts implemented within the framework of descriptive models can be regarded as concepts of the psychological behavior of people in decision-making.

The variety of decision-making conditions and the requirements imposed on them determine the variety of special concepts of the psychological behavior of people in decision-making.

One of the complications of the decision-making process is the selection of the final decision (final alternative) by several criteria at once. The solution to this problem is the use of special strategies of multi-criteria choice and the convolution of several criteria into one general one.

The process and results of the search for and selection of the final decision in descriptive models are significantly influenced by the psychological aspects of a person's behavior in decision-making. Their effect manifests itself:

  • • in the personal profile of the decision being made — the decision variant reflecting the personality characteristics of the DM;
  • • in the formation of criteria and rules of preference among alternatives, specifying the concept of the psychological behavior of the DM being implemented in decision-making;
  • • in the choice of the method for calculating the criterial estimate, especially when convolving particular criterial estimates into a general estimate corresponding to a generalized criterion;
  • • in the individual and group development of a managerial decision, when the influence of phenomena — such variants of people's behavior that can lead to an undesirable divergence of real and expected results — can turn out to be very significant.

The support system created in order to assist the DM in making his managerial decisions should contain detailed methodological information related to the possible models and concepts of decision-making, to variants of decision-making strategies, as well as to those aspects of the psychological behavior of people that significantly influence the content of the managerial decisions he makes.

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Lectures and tutorial on "Decision theory"

Terms: Decision theory