Decision Making: Models, Processes, Techn
Decision Making: Models, Processes, Techn
http://ojs.wiserpub.com/index.php/CCDS/
Review
Abstract: Decision-making is one of the steps in problem-solving that can be applied in manifold areas from personal
situations to the management of organizations. There are functions and processes to lead to making a decision; however,
it may sound complicated to select between decision-making models and approaches as different factors and different
outcomes get involved in the decision-making process. This article is a survey of decision-making with managerial
insight to explain what it is, what kinds of decisions are made, and how they are applied in many sectors, including
computers, management, business, psychology, etc. This paper aims to provide an overview of the decision-making
concept, its functions, process steps, and its main types, models, and categories. Overall, it provides valuable insights
for individuals and organizations seeking to improve their decision-making abilities.
Keywords: decision making, models, decision making types and concept, decision making techniques steps, decision
making problems, managerial concept
1. Introduction
Every day, individuals face many challenging and tough situations to make decisions. In the management decision-
making process, conscious and reasoned as opposed to random decisions are made [1-2]. Before making decisions, it is
necessary to make the appropriate option. This choice is based on pertinent data and produces the desired outcomes. The
choice is a process, not an instantaneous thing. The choice itself is significant, but most individuals recall the decision’s
outcome [3-4]. Each option may have some benefits and drawbacks that are crucial to be considered before making
the choice. Thus, it is critical to gather data and weigh the benefits and drawbacks of each choice [5-6]. Generally, an
appropriate decision can help to overcome the gaps between reality and ideals, and it helps us to identify the way from
initiation to both implementation and termination in a design process. It also helps to consider necessary limitations, and
the preferable situations in case people face a situation in different aspects of their lives [7]. As the situations get more
complicated and many side effects get involved, making an appropriate decision gets more challenging [8]. However,
the outcomes of making mistakes in decision-making in real life may be irreparable considering time, money, and
reputation loss [9-10]. On the other hand, it is not realistic to make error-free decisions in real life as every decision
comes with a range of side effects. However, considering various determining factors and the benefits and drawbacks of
each option increases the likelihood of making appropriate decisions to a great extent [11-12].
2. Decision-making models
It is commonly complicated to make good decisions as the number of alternatives gets increased since every
decision comes with several benefits and drawbacks. Considering the complexity of making appropriate decisions and
encountering various outcomes, decision-making models facilitate the process of choosing between different available
options [22]. Decision-making models provide frameworks and guidelines to make the best choice and better manage
the decision-making process. They are tools to be employed and make effective decisions in cases where decision-
making may get complicated.
Different decision-making models provide a framework to analyze the situation, regard likely solutions, and
eventually lead to an informed decision. They also suggest a range of approaches to making effective decisions based
on the context of the decision and alternatives that influence it. Relying on decision-making models to make structured
decisions facilitates making appropriate decisions to a great extent and may decrease the probability of failure [23].
Getting to know different decision-making models helps decision-makers to get equipped in making appropriate
decisions when there is a range of different options.
The concept of decision-making models is divided into several types in different ways. Here, two main ways of
dividing decision-making models are discussed [14].
Firstly, the decision-making process can be divided into two different district models including normative
(perspective), and descriptive (naturalistic) are described in the following.
As discussed in normative models, during this process, decisions are made with certainty. That is to say, the
alternatives, the decision criteria, and their outcomes are known to the decision-makers, and they can make the optimum
choice and finally implement that choice. All these steps are necessary when the process is rational [8]. The rational
model is based on a sequence of steps that are logically set to lead to a decision. Thus, the problem is first identified
and possible solutions are analyzed and brainstormed then. This model is effective in cases where there is a great
understanding of the problem and enough time to discuss and brainstorm and eventually decrease the level of risk.
However, it cannot be effective in cases where there is limited time or understanding of the problem [26].
In many decision-making processes, all the above steps cannot be approved completely due to the limits in time,
information, cost, etc. Therefore, decision-making is based on an incomplete list of solutions, limited rationality, and
considering intuition, experiences, and advice. Decisions will always be made based on a partial and, to some extent,
insufficient understanding of the full nature of the situation being confronted. In these models, it is not feasible to
consider all choices, conduct a comprehensive review, provide an accurate forecast, or guarantee the optimal decision [8].
As discussed above, the majority of decisions are made unconsciously. However, in other situations, a decision-
making process could be also based on weighing the merits and consequences of the options in a controlled
environment. Overall, the decision-making process involves different factors which overshadow the results. These
factors could be rational, cultural, psychological, and social factors [27].
Rational factors are the main factors in many decision-making problems and they are quantitative ones such as time
and price. People prefer to focus on quantitative elements and neglect qualitative ones. The experiences, capabilities,
and personalities of the decision-makers are some of the psychological factors. The common values and trends accepted
in a specific environment and culture are known as cultural factors. Finally, social factors are other agreements that
can impact the decision of the decision-maker [28]. Thus, in the bounded rational models, the focus is on addressing
the problem rather than searching for the most ideal situation. Therefore, this model can be a working solution to make
immediate decisions for teams with limited time to discuss and brainstorm the situation [27].
3. Decision-making process
Decision-making is a process that starts from a point and leads to a conclusion. Making a decision happens by
following a process including several steps with specific strategies to pass each step appropriately. This process helps
the decision-makers to realize what they need to do in each step and what is the reason [29]. As stated in [29] there
are manifold processes for decision-making recommended by different authors based on their targets. However, a
Establishing the
Defining the Identifying the Determining the
Objectives and
Problem Requirements Alternatives
Goals
Minimizing costs, minimizing Scheduling the risks, Treating the project’s remaining
environmental aspects, maximizing considering the potential
Examples materials and waste, preventing
efficiency, minimizing project risks, Dollar saving, and project the spread of nuclear materials.
and meeting a schedule. available resources.
Decision-making problems can be divided into different subcategories by considering different aspects. For
example, the decision-making can be divided into routine vs strategic decisions (based on the importance of problems),
individual compared with group decision-making (based on the number of decision-makers), programmed compared
with un-programmed decisions (based on the process of decision-making), etc. For this reason, some of the main and
most important views are considered to determine different types and techniques of decision-making. The categories are
discussed below and are listed in Figure 2.
Decision Making
Decision Making
Decision Making
Single Criterion
Group Decision
Multi Criteria
Making
Making
First of all, the way the decisions are made can be considered to identify the decision-making techniques.
Considering this viewpoint, the decision-making problem can be categorized as to:
The problem of decision-making considers a single aggregate measure or criterion like cost. The alternative with
the best value (considering the criterion) is determined as the final solution. This is a classic optimization problem. For
example, if the minimum cost is the criterion, the alternative with the lowest cost is the solution. Manifold optimization
techniques can be utilized to find the solution in these cases based on the functional description and the form of the
problem such as discrete optimization, and linear, and nonlinear programming. In all cases, the criterion is the objective
function, and the requirements on the alternatives are the constraints of the optimization problem [28, 35].
MCDM problems are the techniques used to solve decision-making problems with more than one criterion. When
there are diverse factors to consider, decision-making gets complicated [36]. On the other hand, several factors should be
addressed. Multi-criteria decision-making refers to complex situations that involve different choices to make a decision.
It is a valuable tool in cases where there are various alternatives to consider. So, each qualitative or quantitative criterion
is analyzed to determine whether it is beneficial or undesirable for the outcome [37].
In these cases, the decision-maker can face two general and main subsets:
• Multi-objective decision-making (MODM) methods: In these methods the attributes and goals are implicit and
the possible options are Infinite/Unclear.
• Multi-attribute decision-making methods: These are the problems with finite possible answers, clear goals, and
attributes [28, 35, 37].
Finally, some authors use more specific categories for decision-making types based on the fields of study. For
example, Litvaj et al. [38] described three main types of decision-making spontaneous decision-making, intuitive
decision-making, and rational decision-making. As an example, they identified all of the decision-making by managers
as a rational type that considers consistency, objectivity, and logical elements for the decision-making process.
Therefore, the element of rationality in the manager’s decision-making process is a necessary need for the fulfillment of
management duties.
There are several MCDM methods available such as the analytical hierarchal process (AHP), the analytical network
process (ANP), technology for order performance by similarity to optimal solution (TOPSIS), data envelopment analysis
AHP has been extensively investigated and used in practically all applications connected to MCDM since
its conception because of its simplicity, usability, and significant adaptability [39]. Decision-makers pay the most
attention to AHP as the most popular MCDM technique because there is a wealth of literature on its use. So, it is
crucial to comprehend the precise decision issues that AHP can handle [40]. The approach is predicated on the idea
that assessments should be consistent, and it also springs from the idea that inconsistent evaluations tend to occur
between options that seem to be of minimal relevance to the decision-making manager [41]. To decide which approach
is effective for the calculation and to establish the right order of criteria, the study by Stofkova et al. [41] set out to
examine and describe the AHP method as being necessary for strategic managerial decision-making. The research looks
at several topics, including managers’ perceptions of the AHP approach and the accuracy of computations. Talent was
considered crucial by managers for making decisions in their managerial roles.
DEA is based on linear programming and transforms several input and output metrics into a single, all-
encompassing indicator of productive efficiency. Peer groups are identified, and a production frontier built on empirical
data is used to achieve this. Each unit is assessed as a composite unit that is created by concatenating the evaluations
of the other units in the peer group. DEA has now been used in numerous managerial settings [42]. The determinants
influencing the managerial effectiveness of Malaysian insurers were identified using truncated regression analysis in
the research by Nourani et al. [43]. The DEA is used to calculate overall and divisional efficiency. The decomposition
analysis demonstrates that the observed inefficiencies are brought on by the division of investment capabilities. The
regression outcomes show that factors affecting divisional and overall efficiencies have different effects. According to
this study, financial liberalization is a way to increase managerial effectiveness.
A mathematical formalism and tools for representing and evaluating data are provided by rough sets. The theory
appeals to practitioners because of several distinctive characteristics. Simple, beautiful, and versatile all describe the
rough set. It has been used successfully in a variety of contexts [44]. The study by Do Couto and Gomes [45] sought to
pinpoint the leaders who exhibit a strategic alignment with the standards established by a firm. The dominance principle
is applied (i.e., the Dominance based Rough Set Approach). By employing a Dominance-based Rough Set Method, it
is possible to deduce decision-making guidelines and spot changes that go against that principle. The primary benefit
of employing these procedures (i.e., Dominance-based Rough Set and Rough Set) for an organization is providing the
organizational
TOPSIS is a helpful method for solving real-world multi-attribute decision-making or MCDM problems [46].
The fundamental tenet of TOPSIS is rather simple. It is based on the idea of a displaced optimal point from which
a reasonable compromise is reached with the least amount of travel time [47]. In the work of AlKassem and AlKabi
[48], TOPSIS is used to optimize decision-making while considering a variety of criteria. The decision criteria are
evaluated by a thorough investigation. The consequences of this research aid in the development of an algorithm that
communicates the practical outcomes of this study to the machine and the energy market aggregator for an energy
management scheduling system.
Number
Method Definition Developer of articles Main field included
(Scopus)
Business,
A nonparametric approach for estimating production boundaries Charnes, Cooper Management and
DEA 22994
in operations research and economics. and Rhodes [51] Accounting: 6,729
articles
A formal approximation of a crisp set using two sets that Computer Science:
Rough set represent the bottom and higher approximations of the original Pawlak [52] 22645 16,560 articles
set.
Based on the core tenet that the closest answer to the positive- Hwang and Yoon Engineering: 7,045
TOPSIS 15164
ideal solution is the best one. [53] articles
Engineering: 1,375
ANP An expanded version of the MCDA tool, the AHP. Saaty [56] 3180 articles
Engineering: 1,212
VIKOR method Optimization for many criteria and a compromise solution. Opricovic [57] 2724 articles
Value Reviewing current or new products throughout the design stage Engineering: 852
engineering/ to lower costs and improve functionality to boost the product’s Miles [60] 1552 articles
analysis value.
Best worst To compare a group of options to a set of criteria for making a Engineering: 569
Rezaei [61] 1310
method selection. articles
Multi-attribute To determine a conjoint measure of the utility (attractiveness) of von Winterfeldt Engineering: 394
828
utility theory each result from a collection of options. and Fischer [62] articles
Evidential A general method for dealing with problems that have both Dempster [64] Engineering: 240
reasoning qualitative and quantitative requirements under a variety of 422
Shafer [65] articles
approach uncertain conditions, such as ignorance and chance.
Evaluation
Based on The distances in the positive and negative directions are Keshavarz Computer Science:
Distance calculated separately from the average solution and by the 240
Ghorabaee [66] 111 articles
from Average selected criteria, whether they are beneficial or not.
Solution
Stochastic Lahdelma,
Multicriteria An MCDM approach to situations involving missing or Computer Science: 88
Hokkanen and 223
Acceptability insufficient information articles
Salminen [68]
Analysis
Computer Science: 99
Decision Expert A qualitative version of the MCDA approach. Sol HG [69] 213 articles
Number
Method Definition Developer of articles Main field included
(Scopus)
Simple Multi- A procedure for carrying out MCDA where the evaluation and Engineering: 46
Attribute Rating selection of the most suitable project alternative, among several Edwards [72, 73] 140 articles
Technique alternatives, is based on a list of pertinent criteria.
Measuring
Attractiveness Business,
by a categorical An MCDM technique that compares choices against several Bana e Costa and Management and
108
Based criteria Vansnick [74] Accounting: 40
Evaluation articles
Technique
Characteristic Delivering consistent object evaluations that are not impacted Sałabun [77] 36 Computer Science: 31
objects method by the addition of new objects to the initial object collection. articles
Ordinal Priority An MCDA approach that supports resolving preference-based Computer Science: 14
Ataei [78] 30
Approach group decision-making issues. articles
Superiority A model for MCDM that can work with actual data and offers Computer Science: 12
and inferiority Xu [79] 22
the system user six different preference structures. articles
ranking method
Potentially
All Pairwise Hansen and
Rankings of A pairwise comparison-based MCDA method 19 Medicine: 6 articles
Ombler [81]
all possible
Alternatives
Stratified Multi
Criteria Decision An MCDM approach incorporates uncertainty into the decision- Computer Science: 3
Asadabadi [85] 6
making process. articles
Making
Nonstructural Business,
Fuzzy Decision Applied to make the MODM process easier. Tam et al. [86] 3 Management and
Support System Accounting: 2 articles
Business,
Conjoint Value The development of a performance appraisal system for external Management and
Kourie [88] 1
Hierarchy disclosure that can withstand scrutiny from outsiders Accounting & Social
Sciences: 1 article
5. Conclusion
This article provides a general description of decision-making with a managerial perspective to explain what it is,
what sorts of choices are formed, and how they are applied in various fields, covering computers, management, business,
psychology, etc. In this paper, the concept of decision-making and the importance of the decision-making process have
been clarified. Also, the decision-making process and factors that may be involved in the decision-making process are
recognized. Then, the most common decision-making model types are listed considering different aspects to categorize
them. The decision-making types can be divided into single-criterion and MCDM methods. On the other hand, the way
decisions are made in the process can be in an individual or a group decision-making method. The rationality degree of
the process also is an important factor when a decision-making problem is defined. Understanding the cognitive biases
that can influence decision-making is essential for enhancing the quality of decisions as a whole. By recognizing and
minimizing these biases, decision-makers can make more objective and rational decisions. Moreover, the integration
of advanced technologies, such as artificial intelligence and machine learning, can improve decision-making processes
by providing data-driven insights and predictive analytics, thereby enabling organizations to make more informed and
effective decisions. Future studies may focus on evaluating each of the MCDM approaches, tools, and updated versions,
as well as their benefits and drawbacks, and their applications.
Author contributions
Conceptualization, Hamed Taherdoost; methodology, Hamed Taherdoost, Mitra Madanchian; formal analysis,
Hamed Taherdoost; resources, Mitra Madanchian; writing-original draft preparation, Mitra Madanchian; writing-review
and editing, Hamed Taherdoost; visualization, Mitra Madanchian, Hamed Taherdoost; supervision, Hamed Taherdoost.
All authors have read and agreed to the published version of the manuscript.
Conflict of interest
The authors declare no competing financial interest.
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