Designing alternatives in decision problems

Abstract

Generating alternatives for decision problems is a critical activity regularly underestimated and underdeveloped in the decision analysis literature. We present a survey showing how little this topic has been studied in the last 50 years. We then introduce a general framework under which formalise the design of alternatives. Two examples help to understand our point of view: alternatives are generated through separation of attributes describing the value space of the client/decision maker.

Decision-Making and Effectiveness of Business Results in Times of Covid-19

“…Nevertheless, if the response time of the brain increases, it is interpreted as a risk rate that causes the elimination of the alternatives; therefore, time limits must be set on DMP. The value of these findings resides in that decision makers need to find quick and urgent answers due to the discomfort that is generated by uncertainty (Colorni and Tsoukiàs, 2020), should not lead them to look for shortcuts, nor to reduce the number of alternatives considered, if a deadline is indeed considered to make a pressing decision (Churchland et al, 2008). Additionally, it must be considered that both in everyday life and in business, people have limited capacities and time to process information, affecting the tasks of evaluating alternatives (Freund and Wiebringhaus, 2018).…”

“…Although the generation of the best alternative is an old topic in DMP, it has been a topic less studied and developed in the past 50 years, except in the formulation of public policies (Colorni and Tsoukiàs, 2020). Only since the 1990s, several studies have highlighted that the generation of a set alternatives is a critical issue (e.g., Baetz et al, 1990;Bayne, 1995).…”

“…Only since the 1990s, several studies have highlighted that the generation of a set alternatives is a critical issue (e.g., Baetz et al, 1990;Bayne, 1995). But the most important idea is that before focusing on establishing the set of alternatives, decision makers should focus on what matters to them -their ultimate values-and what are the real means to achieve them -objectives pursued- (Colorni and Tsoukiàs, 2020). In this regard, the alignment of organizational processes with the objectives of the company has historically been a topic of great importance in the literature on strategic management (e.g., Chandler, 1962;Drucker, 1954).…”

“…Consequently, it is key to this process as well as to the identification of attractive alternatives, that the decision makers have a clear set of objectives first, because they stimulate the creation of alternatives (Siebert and Keeney, 2015). However, although values-centered thinking is widely known by decision-making researchers, it has been approached tangentially, so there is a shortage of research that accounts for its use in strategic management practice (Colorni and Tsoukiàs, 2020;Kunz et al, 2016); that is, in the identification and use of the organizational objectives in DMP. Considering the close relationship between alternatives and objectives, this study addresses this gap in knowledge and incorporates the use of organizational objectives in the DMP, as a complement to the proposed model, simple and easy to use in real contexts.…”

“…Second, I studied the need to incorporate other aspects of organizational communication in DMP and its impact on PEBR (Xia et al, 2016). Third, I investigated whether, both the generation of more alternatives (Colorni and Tsoukiàs, 2020), as well as the number of organizational objectives (Colorni and Tsoukiàs, 2020;Kunz et al, 2016) and the level of acceptance of decisions (Di Fabio and Gori, 2016) affect PEBR or not; considering the scarcity of studies related to DMP variables. Finally, I empirically tested whether the Larson (2016) model complied with the recommendations of Holton and Naquin (2005), considering the simple and easy-to-use model in real contexts.…”