Decision-making
Dr Vijay Sangam, 10:45, 27 Jun 2019“If you care about what people think about you, you will end up being their slave. Reject and pull your own rope.” – Auliq Ice
Source: https://mcgrawhillprofessionalbusinessblog.com
What is Decision Making?
1. Decision making involves the selection of a course of action from among two or more possible alternatives in order to
arrive at a solution for a given problem.
2. The English word ‘Decision’ originated from the Latin word ‘decisio’ which means “to cut from.”
3. ‘To decide’ means “to come to a conclusion“ for a given problem.
Steps in Decision Making:
Everyday Decision-Making Techniques:
1. Pros & Cons – Listing advantages & disadvantages of each option. Also known as a rational decision.
2. Prioritization – Choosing the alternative with the highest probability-weighted utility for each alternative.
3. Satisficing – Examining alternatives only until an acceptable one is found.
4. Elimination by Aspects – Uses Mathematical Psychology. Compares all available alternatives by aspects. Any
alternative without an aspect is eliminated.
5. Preference Trees – Compares alternatives by presenting the aspects in a decided & sequential order. Aspects are
ordered from general to specific.
6. Flipism – Flipping a coin, cutting a deck of playing cards, and other random or coincidence methods.
7. Opportunity Cost – Calculates the opportunity cost of each option to make a decision.
8. Divination – Prayer, tarot cards, astrology, augurs, revelation, or other forms of divination.
In Summary:
Decision making involves the selection of a course of action from among two or more possible alternatives in order to
arrive at a solution for a given problem.
Decision making generates more alternatives to the group and diversity of information than an individual.
The quality of the decision will be higher because of the combined wisdom of group members.
Group members evaluate each other’s thinking, so major errors are likely to be avoided.
Group decision making is helpful in gaining acceptance and commitment. Participation increases acceptance and
satisfaction.
People who participate in making a decision will often be more committed to the implementation.
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