Question

The growth of big data techniques has expanded the use of which decision-making approach?

Answer 1

Big data has allowed companies to move a data driven decision making approach. Big data gives insight into questions and allows decision makers more information in determining the right path.

Answer 2

The correct answer is classical.

Step-by-step explanation:

The traditional approach to understanding classical decision making is based on the decision making of classical theory or the rational economic model. The classic vision of decision making has always integrated the concept of rationality decisions into the whole process.

The advantage of the classic model is to indicate a rational approach that can be applied in decision making in organizations.

Give that perspective, Huber (2008: 18) expresses that “classical decision theory considers that decision making acts in a world of complete certainty.” In that sense, decision makers are supposed to have objective elements to decide, that have the complete information and that they can consider all possible alternatives and their consequences before selecting the optimal solution.

Based on the above definition, it is clear that classical decision making and its theory derives from several assumptions. However, all these assumptions are not the reality within this modern information age. Hellriegel (2004) agreed that this process is supported by certain characteristics, which are very unrealistic in practice and are widely discussed today among the managerial field.