Who was the first scholar to apply the concept of decision making to management theory?

Decision Making/Decision Theory (Theory Of Decision Making/Decision Theory) is the comprehensive application of systems theory, operations research, and computer science developed after the Second World War to the problem of managerial decision-making, forming a more complete theoretical system of decision-making processes, criteria, types, and methods. Decision theory has formed a Nobel Prize-winning economist Herbert Simon (herbertsimon) as the representative figure of the decision theory school. Decision theory is related to decision-making concepts, principles, doctrines, etc. General term. The term "decision" usually refers to making choices and decisions from a variety of possibilities. Administrative decision theory is the theoretical basis for guiding and explaining administrative decisions. View the catalog Theory Formation Representative Theories Complete Rational Decision Making Continuous Finite Comparative Decision Making Rational, Organizational Decision Making Realistic Progressive Decision Making Irrational Decision Making Perspectives on Decision Making Theories Trends in Decision Making Basic Points of Simon's Decision Making Theory Basic Points of Simon's Decision Making Theory A Critique of Simon's Decision Making Theory Contributions of Simon's Decision Making Theory The limitations of the theory unfolding Limitations of Simon's Decision Theory Theory Formulation Representative Theories Fully Rational Decision Theory Successive Finite Comparative Decision Theory Rational, Organizational Decision Theory Realistic Progressive Decision Theory Irrational Decision Theory Perspectives of Decision Theory Trends of Decision Theory Basic Points Basic Points of Simon's Decision Theory Criticism of Simon's Decision Theory Contributions of Simon's Decision Theory Limitations of Simon's Decision Making Theory Editorial Formation Administrative decision making theory was formed in the 1930s and 1940s. The first to put forward the administrative decision-making point of view of decision-making theory related books is the American scholar L. Gulick. In his article "Theory of Organization", he considered decision-making as one of the main functions of administration. Later, in his book The Functions of Executive Leadership, the American scholar C.I. Barnard considered administrative decision-making as an important strategic factor in achieving organizational goals. These views had a great influence on the later theory of administrative decision-making. But the formation of administrative decision-making theory system, and make it in the administrative science occupies an important position, but by the United States administrative scientist H.A. Simon realized. 1944 he first in the "decision-making and administrative organization" article put forward the outline of decision-making theory. 3 years later, he published "administrative behavior - in the administrative organization of the decision-making process of the study", become the earliest decision-making theory of the monograph. Thereafter, he continued to study decision-making theory and practical decision-making techniques (including operations research and computer science), laying the foundation for decision-making to become a new management discipline. Edit this section on behalf of the theory of decision-making concepts, principles, doctrines, etc. General term. The term "decision-making" is often used to refer to making choices and decisions from a wide range of possibilities. Administrative decision-making theories are the theoretical basis for guiding and explaining administrative decision-making. There are many types of administrative decision-making theories, and different scholars have different perspectives on the issue. Representative theories include the following. Completely rational decision-making theory is also called objective rational decision-making theory. Representatives of the British economist J. Bianchin, the American scientific management theory of decision-making master Herbert A. Simon F.W. Taylor, etc. They believe that people insist on seeking the greatest value. They believe that human beings are economic beings who insist on seeking maximum value. Economic man has maximum rationality and is able to make optimal choices for the achievement of organizational and individual goals. This is manifested in decision-making by the ability to consider all actions and their implications before making a decision, and by the decision-maker's ability to choose the action of greatest value as a response, based on his or her own value criteria. This theory only assumes that people make decisions under complete rationality, not in the actual state of decision-making. The theory of continuous finite comparative decision-making is represented by Simon. He thinks that human's actual action can not fit into complete rationality, the decision maker is an administrator with limited rationality, can not foresee all the results, and can only choose a "satisfactory" program among the options. The "administrator" has a simplified view of the administrative environment and often fails to grasp the complexity of the decision-making environment and can only see a limited number of options and some of their outcomes. In fact, the degree of rationality has a strong influence on decision makers, but the role of organizational factors in decision making should not be ignored. Rationality, organizational decision-making theory The representative figure is J.G. March, an American organizational scholar. He acknowledges the existence of individual rationality, and believes that since human rationality is limited by individual wisdom and ability, the role of the organization must be used. Through the organizational division of labor, each decision maker can clarify his or her own work and know more about the course of action and the results of the action. Organizations provide individuals with some guidance, so that decisions have a clear direction. Organizations use power and communication to make it easier for decision makers to choose favorable courses of action, thus increasing the rationality of decision making. The rationality of the decision maker is measured in terms of the organization's goals rather than the individual's goals. Realistic Progressive Decision-Making Theory is represented by C.E. Lindblom, an American political economist. The basis of his theory is not human rationality, but the reality that people face and the incremental changes they make to that reality. He argued that decision makers cannot possess all human intelligence and all the information relevant to decision making, and that the time and cost of decision making are limited, so decision makers can only adopt a coping approach and make decisions "in the context of biased mutual adjustment". The theory calls for simplified decision-making procedures and practical, feasible decisions that are responsive to the demands of interest groups and seek to solve realistic problems. This theory emphasizes realism and incremental change and is valued by administrative decision makers. Irrational Decision Making Theory Representatives of this theory include Austrian psychologist S. Freud and Italian sociologist V. Pareto. The basis of the irrational decision-making theory is not the rationality of human beings, nor the reality they face, but their passions. They believe that human behavior is to a large extent governed by the subconscious mind, and many decision-making behaviors often show unconscious and irrational lust, which is manifested in the fact that decision-makers are often emotionally involved in dealing with problems and thus make unwise arrangements. The development trend of administrative decision-making theory is: ① emphasize the influence of human judgment on decision-making. Such as behavioral decision-making theory to explore the decision-makers to seek suboptimal behavior; social judgment theory that decision-makers by the different nature of the environment will cause the impact of judgmental inaccuracies; attributional decision-making theory emphasizes that decision-makers in the role of environmental variables will be subject to chance factors. ② Administrative decision-making theories have been applied in a wider range. Such as the application of decision-making methods in the analysis of the effectiveness of administrative management; the introduction of decision-making theory into the study of sudden crises; the application of decision-making theory in the field of policy analysis, in order to study the causes and occasions that lead to policy failure. Edit the viewpoints of decision theory Decision theory is developed on the basis of systems theory, absorbing the research results of behavioral science, operations research and computer science. The main representative is the American Herbert A. Simon, whose representative works are: "Management Behavior", "Organization", "Economics and Behavioral Science of Decision Theory", "New Science of Management Decision" and so on. Simon was awarded the 1978 Nobel Prize in Economics for his pioneering research in the study of decision theory, decision-making applications and other aspects. The viewpoints of decision theory are mainly manifested in three aspects: 1) highlighting the status of decision-making in management. Decision management theory that: the essence of management is decision-making, decision-making throughout the entire process of management, determining the success or failure of the entire management activities. If the decision is wrong, the organization's resources are more abundant, more advanced technology, is also useless.　2) Systematically elaborated the principle of decision-making. Simon made a scientific analysis of the procedures, criteria, types of decision-making and its decision-making techniques, and proposed to replace the traditional decision-making theory of the "principle of optimality" with the "principle of satisfaction", and researched the methods of conflict resolution in the decision-making process.　3) The role of decision-makers is emphasized. It is believed that the organization is a system composed of individual decision-makers, therefore, it is emphasized that not only attention should be paid to the application of new scientific methods such as quantitative methods and computational techniques in decision-making, but also the role of psychological factors, interpersonal relationships and other social factors in decision-making. Edit this section development trend of administrative decision-making theory development trend is: 1. Emphasize the impact of human judgment on decision-making.　Such as behavioral decision-making theory to explore the decision makers to seek suboptimal behavior; social judgment theory that decision makers by the different nature of the environment will cause the impact of judgment inaccuracies; attributional decision-making theory emphasizes that the decision makers in the role of environmental variables will be subject to the influence of contingent factors.　2. The scope of application of administrative decision-making theory has been expanded.　For example, decision-making methods are applied to the analysis of the effectiveness of administrative management; decision-making theory is introduced into the study of sudden crises; decision-making theory is applied to the field of policy analysis in order to study the causes and occasions that lead to policy failures. Edit the basic points of decision-making theory related books Simon basic points of decision-making theory 1. decision-making throughout the whole process of management, management is decision-making (1) decision-making theory is a new stage in the development of management theory (2) organization is a system composed of individuals as decision-makers (3) all the management activities of the organization is the decision-making (2) decision-making is a process (1) information activities (2) design activities (3) choice activities (4) review activities 3. (4) Review activities 3. Decision-making should be based on "limited rationality" criterion or standard (1) Economic man's "absolute rationality" criterion (2) The behavior of human beings in an organization is a task-centered rational choice of means in order to achieve a certain purpose, with limited rationality. (3) Limited rationality leads managers to seek "conforming" or "satisfactory" measures to achieve certain ends. 4. Decision-making can be divided into stereotypical and non-stereotypical decisions, and the decisions are not stereotyped. Decision making can be divided into stereotyped and non-stereotyped decisions, and decision making techniques are different Decision making theory (1) Types of decision making (2) Techniques of decision making (5) Relationship of decision making to organizational structure, centralization and decentralization, and information linkages (1) Organizational divisions must be based on the types of decisions to be made (2) Centralization and decentralization cannot exist in isolation from the decision making process (3) Line leaders and staff members have decision making problems (4) Decision making premise relies on the transmission of ideas from one member of the organization to another (5) Decision making is a process of communication from one member of the organization to another. (4) Any process by which the decision-making premise is transferred from one member of an organization to another Commentary on Simon's Decision-Making Theory 1. Contributions to Decision-Making Theory 2. The development of management theory around the center of decision-making.　(2) The systematic structure of decision theory can provide managers with a systematic method for analyzing and solving problems. It encourages managers to discover and explore a variety of potential countermeasures and possible states of nature, and can fully utilize a variety of scientific knowledge and technical means to form a more comprehensive and systematic management methods and techniques, so that management has a certain degree of operability.　(3) The limited rationality criterion of the manager (or the decision maker) has considerable objectivity, feasibility and strong practical significance for the decision making of business enterprise management. The limitations of Simon's decision-making theory (1) decision-making theory as a mainstream general management theory, obviously fails to comprehensively reflect the regularity of management activities, lack of analysis of general management relationships and links, ignoring the fact that the management work is much more than the decision-making work, much more complex. Therefore, fundamentally speaking, it also belongs to the management method, means or technical aspects of management theory.　(2) Simon's decision-making theory is essentially a theory of managerial decision-making and does not include business (or operational) decision-making based on the content of the work of the enterprise organization, such as production, sales, and capital operations. From this point of view, it is like other management theories, not closely integrated with the business activities of enterprises, can not become the mainstream theory of business management theory.