Individual decision-making texts that are excellent and worth mentioning in the context of this thread: G. Klein (Sources of Power, Streetlights & Shadows), D. Kahneman (Thinking; Fast & Slow).

Collective decision making and its relationship to turning knowledge into action: that's planning theory. It may have been obscured by the pictures of Greenwich Village and images of Robert Moses, but that was the entire point of my half of the E2Conf presentation with Thomas Vander Wal last November (which I was lucky enough to share with Rachel in person).

Important texts include Friedman's Planning in the Public Domain and the work of communicative planner John Forester (Deliberative Practitioner, Planning in the Face of Power), and more recently Innes & Booher and their work Planning with Complexity, which takes a wonderful blend of Habermas, Dewey, Forester, and complexity theory and outlines the concept of "collaborative rationality."

Planning theory has typically looked at public decisions - how to achieve decision making in the public sphere (urban planning, land use, transportation, social issues, public policy work, etc) , but as organizations shift towards more collective, networked, non-hierarchical structures, I think this body of literature and thought is the most relevant and important there is - it is the route forward now that some organizations are essentially small publics.

That's not to say that planning theory is a panacea; it hasn't been immune to a similar narrative arc in failed master planning / modernist / top-down / hierarchal / systems thinking schemes in the past 100 years (see James Scott's Seeing Like a State for what happens when we mistake complex social decisions as being complicated or simple), but planning theorists and practitioners are well equipped with years of both theory and practice and ongoing discussions about these exact wicked problems that we're working through right now in this social learning / social business / insert-your-favourite-label-here space.