Tuesday, April 3, 2012

Decision-Making Styles - Behavioral Decision Making Theory

Behavioral decision making theorists have identified decision making styles also. These styles reflect a number of psychological dimensions that decision makers employ in perceiving and processing the information. Two important dimensions among them are: value orientation and tolerance for ambiguity. The value orientation can be categorized into focus on  concern for task and technical concerns and focus on people and social concerns. The tolerance for ambiguity orientation measures to want extent the decision maker is comfortable with uncertain situations. These two dimensions are arranged in a matrix to give four styles of decision making: directive, analytical, conceptual, and behavioral.

Directive style: The develop structure and task orientation.

Analytical style: They have high tolerance for uncertain situation but focused on task completion.

Conceptual style: They have high tolerance for uncertainty and also have concern of people.

Behavioral style: They have concern for people and need for less ambiguity.

Fred Luthans, Organizational Behavior.

Another classification of Decision Making Style:


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