DECISION MAKING

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                        Topic: Decision Making

Decision making and problem solving are the meat and drink of business life. Some decisions are made almost instinctively, but more complex decisions with many factors involved require the analysis of a finite set of alternatives described in terms of criteria which can be evaluated.
According to Wikipedia decision making might be regarded as a problem solving activity which is terminated when a satisfactory solution is reached.
Decision making is a reasoning or emotional process which can be rational or irrational, can be based on explicit assumptions or tacit decisions. 

Decisions are often involuntary and following the decision, we spend time analyzing the cost and benefits of that decision. This is known as “Rational Choice Theory,” which encompasses the notion that we maximize benefits and minimize the costs.

Most decisions are made unconsciously, and using instincts learned from, and honed by, experience. Jim Nightingale, Author of Think Smart-Act Smart, states that “we simply decide without thinking much about the decision process.” In a classroom, instructors encourage students to consciously weigh the pros and cons before making a decision. But in the real world, most of our decisions are made unconsciously because it would take too much time to evaluate the pros and cons of each decision we make on a daily basis.
In business many forms of decision making are used. Some decisions are made individually, others by groups such as Boards. Some are made by consensus, some by formal vote. Usually the proposer will present the idea and field questions from the Board, who will then vote on the idea to reach a decision.
There are many decision models, principles and tools used in Business. Many complex decisions are debated by a team and become the subject of analysis, discussion, brainstorming and workshops.

 


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