Moustapha Ndiaye

DSCI 220
Bruno Fisher
Theory Paper

Topic:
Normative, prescriptive and Descriptive approaches to
decision making

When making decisions, no matter what the decision is about; this

decision affect the future and each decision is likely to generate different
outcomes. Some decisions are more important than other and therefore it is
important to make the right choice. As human beings, our intelligence is
limited and can only compute a certain amount of information when
considering the possible outcomes.
In order to avoid uncertainty and risk in rational decision making,
manager in different field of activities such as mathematics, economics, and
statistics use methods of analysis. From Heuristic, normative, prescriptive to
descriptive approaches all have in common that they aim provide the best
possible results but using different parameters.

These methods of analysis are to optimize results linked with decision

making. A simple way to explain normative approach is what people should
do, in other terms the right decision to make; prescriptive approach is what
people should or can do; and descriptive approach is what people actually
doo or have done in historical records. Further studies of these approaches
side by side have shown the difference between theory and reality. The
classical theories have a tendency to assume rationality of the decision
makers. In reality people decision making process is a lot more complex and
include countless parameter as oppose to theories that can only count a
certain number of parameters. This decision making process is not always
rational. The difference between descriptive and normative approaches of
decision making is wide and has gotten even wider over the years.
Most decision theory are either Normative or descriptive as they aim to
identify the best option in a certain situation assuming that the decision
maker makes rational choices and is fully aware of all parameters. The
prescriptive approach to decision making in the other hand aim to help the
decision maker to be the more rational by providing tools and methodology
via various procedures or software. More important than determining the
desired outcome of a situation and the right decision to take in order to
obtain this outcome, is the consideration on how other people may react to
the same situation.
Decision making theories are helpful to determine best outcomes to
managers, scientist or anybody confronted by important decision under

uncertainty. In the other hand the gap between reality and theory is
becoming so huge that the relevance of these theories is becoming
questionable.