LITERATURE REVIEW OF INDIVIDUAL DECISION MAKING
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Published: Mon, 5 Dec 2016
There are different studies that have been conducted on individual decision making which includes the simple classification of deviations from rationality to focus on changing decision patterns (Bazerman, 1998).
INDIVIDUAL DECISION MAKING
There are numbers of decision making studies have paying attention on an individual decision making whose members’ roles are undifferentiated and still so, as role differentiations can be realistic in organization, set members will begin to decide members’ roles that control the timing, nature, and level of their involvement in the decision process. Decision making comprises of one or more people who therefore, formulates and recommends alternatives that communicates to the person in the role of decision making (Sniezek & Buckley, 1995). So, there are numbers of factors that have essential impact on the individual decision making. These factors are personal belief, personal values and personality traits of individual that authority what choices people make. Understanding of these kinds of factors, which influence decision making process, is important to understanding what decisions are made. So, the factors that influence the individual decision making process may impact the organization performance significantly (Acevedo, & Krueger, 2004). Its include all those factor that are exclusively linked with the individual decision maker. Therefore, these factorsarethe mixtures of those variables that are result of the human development and socialization process (e.g. personality, belief, values etc.). Therefore, various factors of individual decision making are divided into categories representing, an individual’s personal beliefs, values and personality. (Hegarty and Sims, 1978, 1979) (McNichols and Zimmerer, 1985 (Kidwell et aI., 1987). (McNichols and Zimmerer, 1985).
It is in optional activities, wherever an individual has freedom of action, that the individual distinctiveness exerts their strongest influence the organization performance (Finkelstein & Hambrick, 1996). (Hambrick & Mason, 1984) who, suggests that individual decision makers serve as an boundary which helps an alignment between organization and its environment, and therefore their decisions and actions are likely to impact the organization (Hambrick, Finkelstein, & Mooney, 2005). Various authors showed that a decision making consists of many individuals (Arendt Priem & Ndofor, 2005; Roberto, 2003; Sniezek & Buckley, 1995; Sniezek & Van Swal, 2001). An individual is characterized by his personal beliefs, personal value and personality association between the organization and the employee, who results in improved productivity, reduced turnover, improved recruiting success, and high rates of retention (Izzo and Klein, 1998; Dorsey, 1998; Braus, 1992). Kouzes and Posner (1995).
Liedtka, (1989) suggested that people behave in according to their own belief and also in accordance with the ideology and values of powerful superiors. Fredrickson, (1983) recommended that decision-making theory has spotlight on too little interest to the impact of other personal beliefs, personal values and personality on the decision-making process. Therefore, from the naturally occurring biases connected with the helpful act of learning, people are also often unwilling to “change their point of view” or “see things from another viewpoint” because of their expressive attachments to their beliefs. Since an individual is normally defined by his or her beliefs, confirmation that contradicts or challenges those beliefs is regarded as threats to the self and, hence, is often resisted or simply ignored (Head & Sustton, 1985). Beliefs of employees in organizations with high levels of holiness are positive, supportive of the organization, and utter dedication to a much greater degree than in organizations without such personal values (Milliman et al., 2001; Pfeffer and Vega, 1999). Beliefs seem to imply something wanted and honored, where attitudes and ideologies refer to quality ways in which individuals or even organizations take action based, perhaps partially, on those beliefs. Sharfman et al.) Numerous researchers prefer to use terms that often others suggest offer some vagueness. Concepts of beliefs seem to entail something wanted and honored, while the attitudes and ideologies refer to trait ways in which individuals or organizations react based, perhaps partially, on those beliefs. The beliefs shape what we term the value that managers hold and play a vital role in the issues management process, specifically in the evaluation phase of issues management (Greening and Gray).
Personal values have been defined as “a value is an idea, explicit or implicit of the desirable that influences the option of available modes, means and ends of action.” (kluckhohn, 1951 ) so from the definition we come to know that there is a universal agreement that value influence the individual behavior in decision making. So far personal values have long been coupled with individual decision behavior. The role of the personal values in decision making inside an organization is less obvious. The study examines personal values as they describe some types of ethical dilemmas. We found a considerable positive role of personal values to individual decision making and a major negative role of self-enhancement values to decision making. The recipe of personal values and organizational influences yields decisions which may be extensively, diverse from those made based upon personal values alone and there is a pragmatic linkage between values and decision making so far the addition of the personal values of the decision-maker as the leading individual input and an clear conversation of the ethical decision process make this model more broad than other recent ethics models (David J. Fritzsche,1991). Numerous authors have argued that personal values have played vital role in the influences of individual behavior in decision making (England, 1967; Christensen et al., 1987; freemen and Gilbert, 1988). There is a growing body of pragmatic literature examining values and business David J.Fritche, 1995). If that is true, one would anticipate personal values to influence the dimension of decision. But, exacting personal values can be known which are associated to individual behavior they would provide provides leading tools for managers who wish for to maintain high standard of ethics in their organization. So far, when hiring candidates on the basis of their values selection could then be made from the candidate pool which holds values allied with their actions. Therefore, Job assignments for existing employees could benefits from comprehension of employees’ values (Davidj.fritzsche, 1995). Hence, the several variables have vital role on performance make it unlikely that an unsophisticated positive relationship between personal values and performance exists in the organization. Thus, it is important to verify what variables reticent the relationship connecting workplace with personal values and performance (Kristof, 1996; Kristof- Brown, 2000). Performance is an attempt to verify what we value and how much we value it. Statements of value are usually multiple, may conflict, and can vary from absolute universals (Donaldson & Dunfee, 1994). The values are related more constantly to perception and decision making than did other measurement methods. Consequences also provide some helf for a theory of values in which values affect perceptual organization that helps to decision making (Ravlin, Elizabeth C.; MeglinoNov 1987)
(Liedtka, 1989) argue that individual and organizational value systems and their function in decision making. Fredrickson (1983) argue that decision-making theory has paid too little consideration to the impact of other personal and organizational values and beliefs on the decision-making process. Greening and Gray (1994) suggested that “how decision makers infer external events accounts for differences in responses” .We believe that the “how” is often at least partly due to those managerial values we look for to measure in study. When the values modify, the outcome ripples throughout related standards of performance. Therefore, changes in values and norms produce stress points among public and corporate interests (Heath & Associates, 1988) and enhance the likelihood of these changes becoming social issues that management must address. The shifting of values those results the utmost degree of uncertainty and complication for the social context. Hence, values are implicit as being those of the society at large. Former research paid partial attention to the idea that individuals have their possess value systems and individuals’ values affect the issues management process and hence, recognize that values go through well before the assessment stage of issues management, specially in the early stages of issues verifications, one should easily see how difficult, possibly individualized this process could become. It is ever clearer that the meanings practical to issues differ depending on perspectives considered of those doing the explanation (Mahon & Waddock, 1992).
Personality variables can clarify the people behavior even though that behavior varies from state of affairs to situation. (Mischel, 1968). Some personality characters of the decision maker are correlated to his/her personal beliefs and behavior. Fascinatingly, the personal traits which would have the strongest predicted theoretical connection to personal beliefs and individual decision making has been verified in the practical work. Numerous instruments already exist to measure a variety of individual character. (Machia vellianism). Therefore, a personality is the hierarchically leading lens through which information is collected, filtered, and acted upon. The personality is the manifestation of how an organization minds, perceives, interprets, assesses, evaluates, and acts upon business opportunities and threats in the environment. Personality can be the instrument as forward looking that high performing organizations identify the importance of complementary these two key strategies and the value of spending considerable time and resources to build and strengthen their inner cores to create a sound, aligned organizational personality (Ezine).
All of the above is concludes with the words, various theories have been generated to give reason how people make decisions, and what types of factors influence decision making in the present and future. Now, numerous factors of individual decision making are divided into categories representing an individual’s personal beliefs, values and personality that are those factor which are exclusively linked with the individual decision maker. Hence it is up to the individual how he acts that individual exerts their strongest influence the organization performance as individual decision makers serve as a boundary which helps an alignment between organization and its environment, and therefore their decisions and actions are likely to impact the organization. So individual person personal beliefs, personal value and personality association between the organization and the employee, which helps to results in increased productivity, reduced turnover, enhanced recruiting success, and higher rates of retention. Beliefs of employees in organizations with high levels of holiness are positive, supportive of the organization, and express dedication to a much greater degree than in organizations without such values. The several variables have may vital role on performance make it unlikely that a simplistic positive relationship between personal values and performance exists in the organization. Thus, it is important to determine what variables modest the relationship between workplace personal values and performance. The personality is the manifestation of how an organization minds, perceives, interprets, assesses, evaluates, and acts upon business opportunities and threats in the environment.
INDIVIDUAL DECISION MAKING
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