Memory issue in oracle database 11g ...

Hi All,
I have installed oracle11gR2 on Linux (CentOS 5.5)... SErver has good amount of HDD - 669G and 16G RAM. I have two database running on this server.
I am getting out of memory error and end user also complains about dB is very slow... I have configured memory and SGA parameter in both the database and total allocation of memory and SGA maximum size 7.5G. So I assuemd that oracle database used RAM from whatever we configured in memory maximum parameter , in my case I have allocated upto 7.5G but when I run top command I can see almost 16G is in used and only few mbs left...
can anyone suggest me my assumption about memory allcoation to database is correct or not ? or when I allocated memory to database (using memory max parameter) then why top showing all memory in used. This is database server and no other process is running except oracle.
Thanks in advance...

Just enable AMM as below and forget the nitty gritties of setting lots of memory parameters ;-D
ALTER SYSTEM SET MEMORY_TARGET=6G SCOPE=SPFILE; --select the amount of memory as per your need                                                                                                                                                                                                                                                                                                                                                                                                   

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