Chapter 4: Foundations of Decision Making

The decision-making process — the eight steps (identify problem → criteria → weights → alternatives → analysis → selection → implementation → evaluation).

Types of problems and decisions — structured vs unstructured problems; programmed vs nonprogrammed decisions.

Decision-making conditions — certainty, risk, and uncertainty.

Decision approaches — rational model, bounded rationality (satisficing), and intuitive decision making.

Biases and errors — common traps (overconfidence, anchoring, confirmation, availability, sunk cost, framing) and escalation of commitment.

Group decision making — advantages, disadvantages (including groupthink), and techniques to improve creativity and quality (brainstorming, nominal group technique, devil’s advocate, etc.).