Decision making can be considered as a cognitive mechanism that results in the choice of a course of action or belief between many alternatives. Decision making is a framework for determining and choosing alternatives based on the decision maker’s principles, beliefs, and interests.
What is Decision Making?
Decision making involves arriving on the solution of any problem after choosing a course of action from multiple possible alternatives. The decision making process is dependent on the decision maker’s preferences, ethics, and values.
Decision Making Types
The following are the types of decisions
- Programmed and Non-programmed Decisions:
Programmed decisions are used with problems that are repetitive in nature routine type.
Generally rules and policies are established for repetitive problems so they can be solved quickly. These kinds of decisions can be made by low-level managers in organizations.
Non-programmed decisions are concerned with unusual and unique problems. These problems don’t have an established procedure or policies for a quick solution. These matters generally have broad consequences in the long term so these types of decisions are taken by high-level personnel. - Routine and Strategic Decisions:
Routine decisions are concerned with problems that arise on routine. A lot of evaluation and analysis are not required while making these decisions.
Strategic decisions, on the other hand, are very important and require a lot of analysis and planning before being taken as they affect the organization on a huge scale. - Major and Minor Decisions
Minor decisions have small scale impacts and can be taken easily and quickly.
Major decisions are responsible for large scale impacts and repercussions and need a lot of strategizing and planning. - Individual and Group Decisions
Decisions taken by single individuals are known as individual decisions.
The decisions taken by a group of people are referred to as group decisions.
Furthermore, decisions can also be classified on
- How complex are the decisions?
The decisions are sometimes very complex and the decisions cannot be taken by simple thinking. These kinds of decisions require complex thinking and evaluation among the multiple choices. Only after proper experimentation and planning can someone commit to a single approach in these kinds of decisions. - How important is the decision?
Decisions can also be classified based on their importance. Some decisions are not very important as they don’t have any large scale impacts and don’t require much planning, these decisions are classified as non-important, and generally, low-level managers in an organization are entrusted with these decisions.
Some decisions, however, have very high scale impacts and can pose serious repercussions if taken without proper consideration. Such decisions are taken by high-level personnel in any organization after very detailed planning and evaluation. These kinds of decisions are to be taken with a lot of analysis otherwise they can have very negative impacts. - How Strategic is the decision?
One further classification of decisions is how strategic they are in nature. Some decisions require a lot of strategizing and planning. These decisions are complex and can have a lot of options that seem correct but with only one option being the best.
In contrast, some decisions don’t require much complex planning and evaluation. These decisions have simpler options and outcomes with one outcome being positive and other being negative.
Decision Making Model
All decisions can be classified in the following models:
- Rational Model
- Bounded Rationality Model
- Intuitive Model
- Rational Model
Also known as the classical model this method of decision making is the most widely used.
Features:- Problems are clear
- Objectives are clear
- All options are known
- All consequences are known and can be anticipated
- Decisions made are rational
- Maximize your output
- Bounded Rationality Model
A goal is to be achieved through the decision making process. The decision-maker should understand all courses of action and anticipate all consequences
Rationality is preferred over emotions in these decision-making model. This model is considered a nexus between means and ends. The decision is considered rational if appropriate choices are made from the provided alternatives to reach the desired goal. The output is not maximized but the minimum requirements are met. - Intuitive Model
The goals are unclear in this model. The problems in these models are time-sensitive and the problems are more subjective. The decision-maker is generally experienced with these kinds of problems. The following are considered when a decision is to be made:- Pattern recognition
- Similarity recognition
- Salience
Decision Making Quotes
There is a lot of decision making quotes written by famous personalities around the world. The following are some of the best Decision making quotes:
“You can’t make decisions based on fear and the possibility of what might happen.” – Michelle Obama
“Whenever you see a successful business, someone once made a courageous decision.” – Peter Drucker
“It’s not about making the right choice.
It’s about making a choice and making it right.”
– JR Rim
“Your life changes the moment you make a new, congruent, and committed decision.” – Tony Robbins “Sometimes it’s the smallest decisions that can change your life forever.” —Keri Russell
