Decision-making Theories
Decision-making can be considered the result of cognitive processes that lead to the selection of a course of action from various alternatives (Gori et al. 2011). In this regard, this paper provides examples of decision-making processes based on the hypothetico-deductive theory, the psychoanalytic theory, and social identity theory (cite textbook). These examples will also be based on personal experiences.
Hypothetico-deductive Theory/ Rationalism
The hypothetico-deductive theory uses the scientific approach to decision-making, that is, the decision is based on logically developed theoretical knowledge (Jefford, Fahy and Sundin 2011). This is based on the philosophical schools of empiricism (i.e. trust in the five senses) and rationalism (i.e. trust in the logical processes of the mind (Jefford et al. 2011).
One personal experience that is consistent with this theory is my decision to buy an apartment. In coming up with the decision on whether to make the purchase or not, I tried to compute my salary, my expenses, and the monthly amortization for the apartment. Seeing that my salary would be enough to cover for my monthly expenses and my monthly amortization, I was encouraged to make the purchase. I also made use of my five senses in making this decision as I based my decision on how good the apartment looked and if it was big enough to accommodate my needs, not only for the present but even for the future, that is, if I wanted to purchase more belongings or if I chose to have some friends over. Also, I based my decision on the proximity of the apartment to establishments like the malls. hospitals, and the business district. In addition, sense-making played a role in this decision in that I figured that it was more practical to pay monthly amortizations for my own place rather than to pay for rent on a property I would never own. I also rationalized that I would be more comfortable living in my own place than renting a place that may not have all the amenities I needed. In addition, this would be in conformance to “normative decision theories that view intelligent choices as involving conscious deliberation and analysis” (Zhong 2011, p.1).
On the other hand, an experience that would be inconsistent with this theory is my decision to ask a former boss to include me among the employees who would be laid off. The company I worked for was downsizing. My boss chose me to stay with her in our team as two members per team were going to be retained. However, I decided to be laid off instead despite my friends’ and family’s advice to the contrary. This was not a rational decision because I still didn’t have a new job to move to after I get laid off and because it’s not logical to want to lose a job when one doesn’t have to. However, I made sense of this decision by reasoning that there wasn’t much benefit to staying in a company that might eventually close down and that there might be more benefit to trying my luck in other companies.
Psychoanalytic Theory
Based on the psychoanalytic theory, people base their decision on what they think their role models will do in a similar situation. Such role models can include parents, celebrities, or superiors.
A personal experience that would be consistent with this theory is my decision about how I handle project tasks at work. In particular, a former boss always encouraged me to be proactive and work on tasks that I think would be beneficial for the company even if I’m not given orders to work on such tasks. This boss also worked this way, so she served as an example for me. Because of this, whenever I encounter situations in my future jobs where I think something can be improved if I exert a little more effort, I no longer think twice and I just proactively work on it. In making sense of this decision, I reason that I will eventually be rewarded for my reactiveness and that this will add to my learning.
In contrast, an example that would be inconsistent with this theory is the way I try to deviate from what my parents want for me. My older siblings always obeyed my parents, and although I consider them my role models, their unquestioning obedience to our parents was not something I chose to follow. As such, I tended to disobey my parents on things that I felt strongly about even if it meant that my parents would be displeased. In making sense of this decision, I reasoned that in the end, it’s my life that’s at stake and whether I end up making the right or wrong decisions, I would be the one to benefit or suffer for them and not my parents.
Social Identity Theory
The application of the social identity theory can be applied to the image theory of decision-making, which, among other things, is based on value image, which represents the decision-maker’s ethics, morals, beliefs, precepts, ideals, standards, and values (Nai 2012). In turn, these values are influenced by the society or group which the decision-maker identifies with. In this decision-making process, the decision-maker also tests the compatibility of the alternatives with his or her goals or plans (Falzar and Garman 2012).
An example of a personal experience that is consistent with this theory is my decision to attend university. I had the option of pursuing other interests or getting a job after high school but I decided to get a degree instead because in my culture and my society, great importance is accorded to a college degree. In particularly, people who have a degree are regarded highly while people who do not have one tend to be belittled and discriminated against. In this regard, I wanted to be positively regarded by members of my society, that’s why I decided to obtain a college degree. In making this decision, I made sense of it by reasoning that if my culture and my society accord great importance to a college degree then it must be because it has a lot of benefits to it.
On the other hand, an experience that is inconsistent with this theory is my decision to move out of my parents’ home right after graduating from university. In my culture, it is customary for children to stay with their parents until they get married. Our culture greatly values close family ties where extended families often live together. However, I instead choose to live on my own despite protests from my family. In making sense of this decision, I reasoned that although it’s good to stay close to my family as this makes it easier to nurture the relationship, I reasoned that I would learn more and become more mature if I live on my own where I have to depend mostly on myself.
References
Falzar, P. R. and Garman, D. M., 2012. Image theory’s counting rule in clinical decision making: Does it describe how clinicians make patient-specific forecasts? Judgment and Decision Making, 7(3), pp. 268-281
Gori, J., Aznarez-Senado, M., Arrondo, G., Fernandez-Seara, M., Loayza, F. R., Heukamp, F. H. and Pastor, M. A., 2011. The neural substrate and functional integration of uncertainty in decision making: An information theory approach. PLoS One, 6(3), pp. 1-10.
Jefford, E., Fahy, K. and Sundin, D., 2011. Decision-making theories and their usefulness
Nai, W., 2012. Screening decision-making framework serving human resource management based on the image theory. Public Personnel Management, 41(5), pp. 79-89.
Zhong, C-B., 2011. The ethical dangers of deliberative decision making. Administrative Science Quarterly, 56, pp. 1-25.
