Decision Making

• Overview
• Types
• Examples

Overview

Decision making is the process of selecting a course of action from multiple alternatives to achieve a goal while considering potential consequences.

Key Aspects:

• Multiple Alternatives: There are usually several possible courses of action.
• Expectations: Decision makers form expectations about future events, often described in terms of probabilities.
• Consequences: The outcomes are assessed based on personal values and current goals.

Process:

• Problem Recognition: Identifying the issue that requires a decision.
• Information Search: Gathering relevant information.
• Definition of Alternatives: Listing possible courses of action.
• Selection: Choosing the best alternative based on criteria.

Characteristics:

• Problem-Solving: Decisions help in resolving conflicts and solving problems.
• Prediction: Decisions require forecasting future outcomes based on past and present information.
• Rational Thinking: Decisions are based on logical analysis and foresight.

Types of Decisions

Programmed Decisions:

Routine and recurring problems. Example: A school principal approving the monthly budget for classroom supplies.

Non-Programmed Decisions:

Unique and non-repetitive problems. Example: A university deciding how to handle a sudden drop in student enrollment due to a pandemic.

Strategic Decisions:

Policy matters with long-term implications. Example: A company deciding to enter a new international market.

Tactical Decisions:

Specific, functional, and short-term. Example: A retail store manager scheduling staff shifts for the upcoming week.

Individual Decisions:

Made by one person. Example: A teacher deciding on the seating arrangement for their classroom.

Group Decisions:

Made by two or more persons. Example: A school board deciding on the adoption of a new educational policy.

Decision Making © 2024