TEACHING GUIDE

CORPORATE DECISION METHODS

GRADO EN ADMINISTRACIÓN Y DIRECCIÓN DE EMPRESAS

(INGLÉS)

ACADEMIC YEAR 2022-23

Date: 07-07-2022

Vicerrectorado de Calidad y Estrategia

 CORPORATE DECISION METHODS

Vicerrectorado de Calidad y Estrategia Page 2

 CORPORATE DECISION METHODS

I.-Subject Identification

Type OBLIGATORIA

Teaching period 3 course, 1Q semester

Nº of credits 4.5

Language in wich the subject is taught English

II.-Presentation

Decision making is the essence of management problems in any business organization. The applicability of this discipline also
reaches many aspects of everyday life. It deals with situations in which an individual, group or company can take several
alternative ways of action. Decisions will be made in an environment where there is uncertainty about how the behaviour of some
factors will be. These factors will determine consequences of the chosen action. The decision making theory, studied in this
subject with many applications to real business problems, appears as a methodology that gives coherence to the decision-
making systems.

Skills required: Good knowledge in statistical topics based on Probability and Optimization, and Mathematics.

III.-Competences

Generic competences

CI01. Ability to analyse and synthesise: analysis, synthesis, evaluation and decision-making based on relevant information
records on the company's position and potential growth.
CI07. Ability to solve problems
CI08. Ability to make decisions

Specific competences

CP20 . Ability to identify and quantify uncertainty in decision problems

CE11. Knowledge support necessary for the proper realization of learning and prior knowledge, especially Statistics
CP01. Domain of IT tools applied with specific character to the different matters
CP02. Ability of application of the theoretical, methodological knowledge and of the technologies acquired in the process of
formation
CP04. Ability to use tools of quantitative nature in the capture of managerial decisions
CP03. Ability to model managerial situations
CP06. Strategic vision of the business management
CP07 . Ability to manage human resources

Vicerrectorado de Calidad y Estrategia Page 3

 CORPORATE DECISION METHODS

IV.-Contents

IV.A.-Syllabus

Parts Lessons Sections

1.1. Decision Theory. Introduction.

Lesson 1. Fundaments on Decision
I.- Introduction 1.2. Elements of a Decision Problem
Making Theory
1.3. Decision Scenarios

2.1. Statement a Decision Making

II. Decision Making under Uncertainty Lesson 2. Basic Criteria Problem under Uncertainty.
2.2. Decision Criteria under Uncertainty

3.1. Statement a Decision Making

Problem under Risk
Lesson 3. Decision Making Theory
III. Decision Making under Risk 3.2. Mean Value Criterion
under Risk
3.3. Information Assessment
3.4. Other Criteria

4.1. Approaching the problem

4.2. Partial Perfect Information
Assessment
Lesson 4. Decision Trees
4.3. Decision Making Add-in for Excel.
Precision Tree.

5.1. Decision Rules

IV. Observation and Decision Making Lesson 5. Decision Rules: Assessment
5.2. Risk Functions

6.1. Stating the problem

6.2. “Prior” Distribution
Lesson 6. Bayesian Methodology
6.3. “Post” Distribution
6.4. Information Assessment

7.1. Approaching the problem

Lesson 7. A Basic Utility Theory 7.2. Isotonic (Order-preserving) and
V.- Utility Theory
Approach Faithfully Represented Functions
7.3. Utility Function

8.1. An Axiomatic Treatment of Utility.

Luce-Raiffa Axioms.
Lesson 8. Utility Theory under Risk 8.2. Utility Functions and their
properties.
8.3. Utility Theory under Risk

IV.B.-Training activities

Type Title

Vicerrectorado de Calidad y Estrategia Page 4

 CORPORATE DECISION METHODS

(AFE2, AFE4) Preparation of individual exercises and

Practical / Problem solving
participation in debate

Reading (AFE1) Preparation of lecture classes

Others (AFE5) Participation in academic tutorials

Vicerrectorado de Calidad y Estrategia Page 5

 CORPORATE DECISION METHODS

V.-Student worload

Lecture classes 20

Pratical classes/problem-solving, case studies, etc. 20

Practical sessions in technological laboratories, hospitals, etc. 0

Tests 5

Academic tutorials 10

Related activities: conferences, seminars, etc. 3.5

Preparation of lecture classes 20

Preparation of practical classes, problem-solving, case

30
studies,etc.

Test preparation 26.5

Total student workload 135

VI.-Methodology and academic programme

Type Period Content

Problem solving lessons in the

classroom. The student will be proposed
to solve problems before the lessons in
order to find the doubts when solving the
Work placements Week 1 to Week 15
problems in the class. In this way, it sill
be promoted the students autonomy,
group work, debate abilities and
constructive criticism.

Theory lessons in the classroom. This

will be complemented with resources for
Theory classes Week 1 to Week 15 the students provided by the professor in
the Aula Virtual (reading material,
audiovisual material, lectures).

One-to-one or group meetings to check

the proper learning of the student and
Academic Tutorials Week 1 to Week 15 solving doubts. This activity includes the
use of the Aula Virtual email, forum and
video conference capabilities.

Vicerrectorado de Calidad y Estrategia Page 6

 CORPORATE DECISION METHODS

VII.-Assessment methods

VII.A.-Assessment weighting

Continuous ordinary assessment:

The distribution and characteristics of the assessment tests are those described below. Only in exceptional case and for special
reasons may the teacher add changes to the Guide. These changes will require the prior consultation with the Subject Head and
the prior and explicit authorisation of the Degree Programme Coordinator, who will notify the Vice-Rector?s office in charge of
Academic Affairs of the modifications made. In any case, the changes proposed must take into account the stipulations of the
verified report. In order for these changes to take effect, they must be duly communicated at the start of the course to the
students using Aula Virtual.
The combination of activities that are not re-assessable cannot exceed 50% of the subject grade and, in general, cannot have a
minimum grade (except for the case of laboratory or clinical work placements, where duly justified), and tests which exceed 60%
of the subject weighting cannot be added.
Extraordinary assessment: Students who do not manage to pass the ordinary assessment, or who did not attend, will be
subject to completion of an extraordinary assessment to verify their acquisition of the skills established in the guide, only for
activities that are re-assessable.

Description of the tests for assessment and their weights.

The tests will consist of the resolution and interpretation of problems and theoretical-practical exercises on the theory of
decision and decision methods in uncertainty and risk.
The evaluation tests will be on-site and they will be theoretical-practical (40%) and case resolution (60%). The minimum score to
obtain a passing grade in the evaluation will be 5 points.
All the tests will be reassessable and the minimum score must be approved in each one of them for the computation of the
average according to the weights established. The qualification of "not presented" will be reserved for the student who has not
taken any of the assessment tests. The calendar of the theoretical-practical tests and case resolution practices, which are
developed in the ordinary period and the details of them, will be published in the Virtual Classroom in the first weeks of the
course.

VII.B. Assessment of students with an academic exemption

Student who wish to opt for this assessment will have to get an academic exemption for the subject, which they will have to
request from the Dean or Director of the Centre which teaches their course. An academic exemption may be granted where the
subjects own characteristics allow for it.

Subject with the possibility of an exemption: Yes

VII.C. Review of assessment tests

In accordance with the exam appeal regulations of the Universidad Rey Juan Carlos.

VII.D.-Students with a disability or special educational needs

Curricular adaptations for students with a disability or special educational needs will be determined by the Disabled Students
Support Department, in accordance with the regulations governing the Disabled Students Support service, approved by the
Universidad Rey Juan Carlos Council, in order to guarantee equal opportunities, inclusive treatment, universal accessibility and a
greater guarantee of academic success.

For this purpose, this Department will have to issue a curricular adaptation report, therefore students with disabilities or special
educational needs must contact the Department to analyse the different alternatives together.

Vicerrectorado de Calidad y Estrategia Page 7

 CORPORATE DECISION METHODS

VII.E.-Academic behaviour, academic integrity and honesty

The Universidad Rey Juan Carlos is completely committed to the highest standards of academic integrity and honesty.
Therefore, studying at the URJC means you accept and agree to the academic integrity and honesty values described in the
University's Code of Ethics. In order to monitor this procedure, the University has Regulations on academic behaviour at the
Universidad Rey Juan Carlos and uses different tools (anti-plagiarism, supervision?) which provides a collective assurance that
these essential values are completely developed

Vicerrectorado de Calidad y Estrategia Page 8

 CORPORATE DECISION METHODS

VII.-Bibliography

Referecence Generic

Berger, J.O. (1988). Statistical Decision Theory and Bayesian Analysis. Springer

García Aguado, J. y otros (2002). Métodos de Decisión. Ejercicios Resueltos. Prentice Hall

Rabadán Gómez y otros (2020). Métodos de Decisión en la Empresa. Ediciones Paraninfo.

Raiffa, H. (1968). Decision Analysis. Addison-Wesley

Ferguson, T. S. (1967). Mathematical Statistics : a Decision Theoretic Approach. Academic Press

Reference literature

Córdoba Bueno, M. (2004). Metodología para la Toma de Decisones. Delta Publicaciones

Córdoba Bueno, M. (2005). La Toma de Decisones en la práctica. Delta Publicaciones.

López Cachero, M. (1998). Análisis y adopción de decisiones. Pirámide.

IX.-Lecturers/Teachers/Professors

Lecturer/teacher/professor´s name RAUL CESAR VOLPE BELLO

E-mail address [email protected]

Department/field Economía Financiera y Contabilidad e Idioma Moderno

Category Profesor/a Visitante

Academic qualifications Doctor

Subject Coordinator Yes

Para consultar las tutorias póngase en contacto con el/la

Academic tutorial timetable
profesor/-a a través de correo electrónico

Nº of Quinquenios 0

Nº of Sexenio 0

Nº period for technology transfer 0

Stretch Docentia 0

Vicerrectorado de Calidad y Estrategia Page 9