ABSTRACT
This chapter focuses on the types of decision executives may be expected to take. It reviews how such decisions might be taken within an organisation setting. The chapter considers both decisions taken by individual executives and by groups. It shows that in practice people both as individuals and in groups take decisions using heuristics in order to simplify the complexity that surrounds decisions. The chapter provides how creative problem-solving methods may be useful in helping along the decision-making process. Decision making may sometimes involve making less than optimal choices; however, by combining the process with the product of creative problem solving, more insightful solutions producing better outcomes may be obtained. D. Kahnemann and A. Tversky identified the inadequacies of previous descriptive models of risky decision making. Prior to the advent of prospect theory it was assumed that people are risk averse – that is, they will always choose the least risky option.
