Decision Making
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.
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