Decision

Decision is a cognitive process that results in the selection of a belief or a course of action among several possible alternative options. Decisions are the heart of success, and at times there are critical moments when they can be difficult, perplexing and nerve-wracking.

Definition

A decision can be defined as a course of action purposely chosen from a set of alternatives to achieve organizational or managerial objectives or goals. Decision making is the process of sufficiently reducing uncertainty and doubt about alternatives to allow a reasonable choice to be made from among them. This definition stresses the information-gathering function of decision making. It should be noted here that uncertainty is reduced rather than eliminated. Very few decisions are made with absolute certainty because complete knowledge about all the alternatives is seldom possible. Thus, every decision involves a certain amount of risk.

Types of Decisions

Decisions can be categorized into three types:

1. Routine Decisions: These are everyday decisions that require a simple yes or no, such as deciding on the lunch menu or the route to work.

2. Strategic Decisions: These are high-level decisions that are made by top-level executives in the organization. They involve a significant commitment of resources and determine the overall direction of the organization.

3. Tactical Decisions: These are decisions about how things will get done. They are often made by middle-level managers and are guided by the strategic decisions.

Decision Making Process

The decision-making process involves the following steps:

1. Problem Identification: This is the first step in the decision-making process. The problem must be accurately defined and understood before a decision can be made.

2. Information Gathering: Once the problem is identified, the next step is to gather information about the problem and the possible solutions.

3. Evaluation of Alternatives: After gathering information, the decision maker evaluates the different alternatives and selects the most feasible and effective solution.

4. Decision Implementation: The final step in the decision-making process is implementing the decision and monitoring its effects.

See Also

• Decision Theory
• Decision Analysis
• Decision Support Systems
• Decision Trees

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