The paper "Decision Making Management" is a wonderful example of an assignment on management. 1. What are the key differences between Naturalistic and more traditional Decision-Theoretic explanations of human decision making? Which of these two approaches provides a better explanation of managerial decision making? Introduction Naturalistic decision making basically involves looking at what is actually happening in the real world in making decisions and interpreting issues rather than using outlined theories. The traditional theoretic explanation on the other hand uses explanatory and rigid theories in order to make decisions. The use of naturalistic decision making in managerial decision making is more advantageous in the managerial decision-making process, due to the fact that this particular approach involves evaluation of what is really happening in the real world.
Many decisions made in organizations involves choosing between many options that should be effectively analyzed in order to come up the practical decision that can enhance the effective running of the organization. Various options are weighed in accordance to the real situation on the ground, or by measuring chances of success as evident in the real world, as opposed to theoretic explanation approach were options are not weighed based on realistic facts and varied viewpoints but rather rigid outlined theories, which may not actually facilitate realistic decisions according to the present needs of the organization. The naturalistic approach can also be described as the best method for facilitating situational assessment in managerial decision making.
The aspect of situational assessment requires analyzing all the available options rather than judging one option that is superior to others as is practiced in the traditional decision-theoretic approach. Situational features assist incorrect evaluation and also offers a good ground for the building skill. Conclusion Among the two approaches used in decision making, the naturalistic approach is much more suitable in managerial decision making as opposed to the traditional theoretic approach in decision making which does have not been sufficiently tested in the context of the real world.
Furthermore, theories have only been made applicable in limited situations and thus their significance may be limited.
ReferencesBazerman, M. & Moore, D. A. (2008). Judgement in managerial decision making. 7th Edition; Wiley. Chapter 5.