Decision-making is essential in selecting a suitable course of action for an individual. It is a process of choosing an appropriate solution for a problem. Decisions can be taken in a step-by-step process that helps in gathering significant information and choosing effective resolutions.
Type of decisions
Routine and strategic decisions
Routine decisions are taken by the managers regarding the daily operations of an organization. It does not require in-depth analysis. On the other hand, strategic decisions are taken by the management of a company and it requires assessment of collected data.
Non-programmed and programmed decisions
Programmed decisions are taken in case of problems that occur repetitively and it is a standard process that does not require much research. Non-programmed decisions are taken generally in case of unpredicted issues that suddenly arise and it requires careful assessment of available data.
Group and individual decisions
A group decision is taken by considering the opinions of a number of people. It is a democratic process in decision-making that can be useful in taking effective steps regarding solving problems. Individual decisions are taken by a person based on individual assessment.
Personal and organizational decisions
Organizational decisions are taken by official execution regarding the issues of the company and it is directly related to the overall benefits of the organization. On the other hand, personal decisions are not related to any organization and it is taken in a personal capacity.
Steps of decision making
Step 1: Understand the type of decision that is required in each situation. It helps in clarifying the type of measures that need to be taken to address the situation.
Step 2: Collection of relevant information is the essential step of decision-making. The best sources of gathering information need to be selected and relevant information needs to be gathered. The process of collecting data requires both internal and external work. The gathered data need to be self-analyzed before forming any opinion. Information can also be collected from online sites and by asking the opinion of other people.
Step 3: The assessment of the collected data needs to be analyzed thoroughly to identify various possible alternatives for solving issues. In this stage, additional information needs to be collected in order to evaluate the alternatives. The disadvantages and the advantages of such alternatives need to be examined to choose a proportionate resolution.
Step 4: The most appropriate action needs to be chosen and prepared for implementing the course of action that needs to be done. At the final step, the outcome of the action needs to be analyzed in order to assess the effectiveness of the resolution.
Factors of the decision making process
Decisions can be taken by reasoning or by using intuition. Individuals can also use both of these methods to make appropriate actions.
It is the process of using gut feeling in choosing an effective course of action. It depends on the personal experience of an individual and the values that the individual holds. This method depends on learning by experiencing similar situations in the past. It is not always based on factual methods or the deduction of alternatives. The intuitive decision is based on the perspective of an individual. As a result, the way of action may differ from person to person.
It is basically a deductive method of decision-making. It includes the collection of figures and facts to make a decision. It heavily depends on facts and the outcome of similar situations in the past. The outcomes are observed and analyzed to point out the negative and affirmative sides of the choices. The facts are also considered to take an appropriate step that can be relevant to the current situation. It is used in making complex decisions and the implementation process is structured beforehand to address the issues.
Issues regarding effective decision making
It poses a major issue in the decision-making process. In case of insufficient information, the decision cannot be backed up by evidence and prior observations. The gathering of data is a time-consuming process and it is an important step that needs to be followed for making adequate decisions.
It can complicate the selection process of the alternative resolution. It can be confusing to assess a wide range of information and delay the decision-making process. It can be avoided by categorizing the available information into several subsets.
The diversity of opinions complicates the process of making decisions. The opinion of the people can differ based on their personal values and experience. As a result, conflicts may occur during the selection of proportionate actions. It can be avoided by taking up the responsibility of selecting an appropriate step to address the adverse situation.
The formation of opinion is an important step in decision-making. The decision-making process is usually influenced by personal values, experiences and emotions. As a result, decisions are often affected by personal bias and it varies depending on the culture and the tradition of the individual. The critical analysis of a situation and evaluation of facts can prove to be essential in making good decisions.