Chapter 3

Chapter-3
DECISION MAKING
In psychology , decision making is

regarded as the cognitive process
resulting in the selection of a belief or
a course of action among several
alternative possibilities.
Steps In Decision Making
DECIDE model of decision – making , which has six
parts,
1. Define the problem
2. Establish or Enumerate all the criteria.
3. Consider or Collect all the alternatives.
4. Identify the best alternatives
5. Development and implement a plan of action
6. Evaluate and monitor the solution and examine
feedback when necessary
•Decision Making Models
•
•1. The Rational/Classical Model
•It is the first attempt to know the decision making
process.
•Features :
•Problems are clear.
•Objectives are clear
•All alternatives are known
•All consequences can be anticipated.
2. Bounded Rationality or Administrative Man Model:
Decision making involve the achievement of a goal .

Rationality demands that the decision maker should properly
understand the alternative course of action for reaching the
•
goals.
Bounded rationality is the idea that in decision making ,

rationality of individuals is limited by the information they
have , the cognitive limitations of their minds and the finite
amount of time they have to take decisions.
3.Retrospective Decision model :
This model focuses on how decision makers

attempt to rationalise their choices after they
have been made and try to justify their
decisions.
HEURISTICS
Heuristics are simple strategies or mental
processes that humans , animals , organisations
and even some machines use to quickly form
judgements , make decisions, and find solutions to
complex problems . This happens when an
individual , human, or otherwise focuses on the
most relevant aspects of a problem or situation to
formulate a solution
•Factors Affecting Decision Making
•Certainty (When the person has enough information to know
the outcome of the decision )
• Risk : (person has less information leading to the decision

but does not know everything and unsure or unaware of the
consequences)
• Uncertainty: (Probabilities of results are unknown)

•- Perception of the decision maker
•- Situations
•- Policies and procedures of the organisation
•- Experience of the decision maker
•- Time constraints
•CREATIVITY IN DECISION MAKING
•Creativity : The process of developing original, novel responses to a problem.

Or creativity is the “Cognitive process of developing an idea , concept,
commodity , or discovery that is viewed as novel by its creator or a target
audience”.
•If a decision maker is going to produce novel alternatives when solving a problem
, then he or she is going to need a little creativity to help the process along.
• Creativity is the ability to link or combine ideas in novel ways. And their
unique alternatives have to be considered useful to others. It is also known as
divergent or lateral thinking.
•
•Components of creativity :
•Domain Skills : A manger can be creative in decision making if
he is theoretically and conceptually aware of the of the problem
and its relevant to the environmental factors.
•Creativity Skills :
•The skills to do creative things , to think of new ways of doing
the work.
•Task Motivation:
•Rather than monitory benefits manger should feel motivation
themselves to do some task.
•
Ethics in Decision making
It refers to the process of evaluating and choosing
among alternatives in a manner consistent with
ethical principles.
This process requires

- Commitment : The desire to do the right thing
regardless of the cost .
- Consciousness : The awareness to act consistently
and apply moral convictions to daily behaviour
- Competency : The ability to collect and evaluate
information , develop alternatives , and foresee
potential consequences and risks .
COMMUNICATION
It is defined as the process by which people seek to share
meaning via the transmission of symbolic messages.
Communication Process :
Sender – Message – Encoding – Channel – Receiver – Decoding
– Message – Feedback
•Barriers in Communication
•Semantic barriers
•Emotional or Psychological barriers
•Organizational barriers
•Personal Barriers
.
INTERPERSONAL
DYNAMICS
Interpersonal Behaviour :
It is the behaviour that takes place during human interactions. This is the way in
which people communicate either verbally or non verbally (gestures) or both.
Nature of Interpersonal Behaviour
1. Aggressive behaviour : It is that type of interpersonal personal behaviour in

which a person stands up for his own rights in such a way that the rights of others
are violated . Here one person humiliates, dominates , or puts the other person
down rather than simply expressing one's own emotions or thoughts.
2. Non-assertive behaviour. : It is the type of interpersonal behaviour which

enables the person's rights to be violated by another.
3. Assertive behaviour : In this a person stands up for his legitimate rights in such
a way that the rights of others are not violated. The assertive person shows respect
for the other person. It is an honest , direct and appropriate expression of one's
feelings , beliefs and opinions
TRANSACTIONAL ANALYSIS
Transactional analysis (TA) , refers to a method of analysing
and understanding interpersonal behaviour. When people
interact there is social transaction in which one person
responds to another . The study of these transactions
between people is called transactional analysis. It was
originally developed by Eric Berne for psychotherapy in
1950s. Later on its applications was popularized Berne ,
Harris , and Jongeward. TA involves analysis of Self
awareness , Structural analysis (ego states), Script
analysis and Games analysis.
•1.Self Awareness : It involves knowing 'who one is and
how similar to or different from others he is'. It includes
• i) Gaining an insight into one's behavioural strength and
weakness
• ii) Assessing how one is perceived by others
• iii) How others are impacted based on one's behaviour
and conduct. Joseph Luft and Harrington Ingham
developed a diagram .
Information known Information not known

to self to self
Information known
to others 1. open 2. Blind
Information not 4. Unknown

3. Hidden
known to others
Johari window
2. Structural analysis (Ego states )
Ego states of a persons are important aspect of TA because these determine, to a
grate extent , whether interpersonal interaction will proceed smoothly or not. People
interact with each other in terms of three Psychological positions or behavioural
patterns known as ego states. Thus ego states are a person's way of thinking ,
feeling and behaving at any time.
These ego states Parent,adult,child , these are not related with chronological age of
the persons. These are related with the behavioural aspects of the persons.
1. Parent ego : Parent ego state incorporates the attitudes and behaviours of a
person who served as parent figure when an individual was child. (being over
protective , distant , dogmatic)
2. Adult ego : It based on reasoning , seeking and providing information. (Views

people as equal, worthy and responsible human beings it is based on rationality )
3. Child Ego : It includes creativity, Conformity ,depression , dependence.

3. LIFE SCRIPT :
Life Script also known as Psychological Script of a person is his life plan with
which he lives and behave . Every person has a life script , When
confronted with a situation a person acts according to his script which is
based on what he expects or how he views his life position.
LIFE POSITION
It refers to the specific behaviour towards other that an individual learns
on the basis of certain assumptions made very early in the life. Very
early in the childhood , a person develops a dominant philosophy which is tied
with his identity , sense of worth and perception of other people. This tends to
remain with the person for life time unless some major experiences occurs to
change it.
You are OK
I am OK You are OK I am not OK you are OK I
I am am
OK not
I am OK you are not OK I am not OK You are not OK
OK
You are not OK

1.I am OK you are OK : This life position is rationally chosen life
position. It is made after the individual has a large number of experiences
with others. Persons with this life position can solve their problems
constructively.
2. I am OK you Are not OK: This life position is taken by a person who is
victimized or persecuted. They blame others for their miseries. They
develop attitude that what ever they do is right . They develop a rebellion
child ego or parent ego .
3. I am not OK You are OK : This is common to some persons who feel
powerfulness in comparison to others . It is based on one's feelings about
oneself. Individuals who feel a clear distinction between themselves and
the people around them who could do many things that the individual
could not do , hold this life position.
4.I am not OK You are not OK : This is a desperate life position .This life
position is taken by those persons who lose interest in living. They feel
that this is not worthy to live with. In extreme case they commit suicide .
Empathy : It is the capacity to understand or feel what
another person is experiencing from within their frame
of reference , that is the capacity to place oneself in
another's position.
Types of Empathy :
1. Cognitive Empathy : Simply knowing how the other person
feels and what they might be thinking.
2. Emotional Empathy : When you feel physically along with the

the other person , as though their emotions were contagious.
3. Compassionate Empathy : With this kind of empathy we not

only understand a persons predicament and feel with them , but
are spontaneously moved to help if needed.
Assertiveness :
Assertive means standing up for your personal
rights – expressing thoughts, feelings and
beliefs in direct , honest and appropriate ways.
Assertiveness is a skill regularly referred to in social
and communication skills training.
Being assertive means being able to stand up for
your own or other's people rights in a calm and
positive way, without being aggressive , or
passively accepting 'Wrong'.
Assertive individuals are able to get their point
across without upsetting others. Or becoming upset
themselves.

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Chapter-3

In psychology , decision making is

Decision making involve the achievement of a goal .

Bounded rationality is the idea that in decision making ,

This model focuses on how decision makers

• Risk : (person has less information leading to the decision

• Uncertainty: (Probabilities of results are unknown)

•- Policies and procedures of the organisation

•- Experience of the decision maker

•Creativity : The process of developing original, novel responses to a problem.

This process requires

Nature of Interpersonal Behaviour

1. Aggressive behaviour : It is that type of interpersonal personal behaviour in

2. Non-assertive behaviour. : It is the type of interpersonal behaviour which

Information known Information not known

Information not 4. Unknown

2. Adult ego : It based on reasoning , seeking and providing information. (Views

3. Child Ego : It includes creativity, Conformity ,depression , dependence.

You are not OK

2. Emotional Empathy : When you feel physically along with the

3. Compassionate Empathy : With this kind of empathy we not

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