The Structure of Management Decision Theory

Abstract

One acting in the capacity of a manager or an executive must make choices among various plans, policies, and strategies. Among other conditions, decisions must be made under varying degrees of information--customarily classified as conditions of certainty, risk, and uncertainty. Decision theory attempts to give structure and rationale to the different conditions under which decisions are made. A great many problems or gaps still exist in the theory. This article provides a review of some of the essential elements of management decision theory and a commentary on some of the problem areas where continuing attention might profitably be focussed.