What is the decision making theory

The theory makes the path for studying the process by which administrative organization makes.It uses a set of axioms about how rational individuals behave which has been widely challenged on both empirical and theoretical ground.According to glasser, freedom, fun, power, love and belonging, and survival are basic satisfied needs which come from choices we make.Decision theory is the study of making choices, and while open, techniques can improve the process.What is decision theory approach?

Essentially, it's a decision theory, but it has some important distinctions from other decision, such as causal and evidential decision theory.According to this idea, behaviour is the outcome of an individual's deliberate decision to engage in a particular action.It seeks to evaluate how choices are made.Furthermore, major strategic decisions tend to be, in most cases, unique to each organisation.2.2 the model of bounded rationality.

Aggregation of individua l preferences (choices) in to collective preferences.A general theory of administration must include principles that will insure both correct decision making and effective action (simon, 1947).The task of deciding is fundamental to administration, and there is a variety ofNot to be confused with choice theory) is a branch of applied probability theory concerned with the theory of making decisions based on assigning probabilities to various factors and assigning numerical consequences to the outcome.The theorist argued that making a decision is making a choice between alternative courses of action.