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National Service Training Program (AMA Computer University)

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DECISION-MAKING PROCESS NSTP101

Decision-making

• Making a choice or coming to a conclusion

• The act or process of deciding, a determination
arrived at after careful consideration
• Involves commitment to action

Kinds of Decisions
1. Operational Decision- concerned with how the
different functions of the organization, such as
marketing, production, finance, etc. will contribute
to its strategic plan
2. Strategic Decision- concerned with the scope of
the organization’s activities
3. Routine Decision- an ordinary decision on a
wide range of issues. The decisions are left to one
person, usually the leader
4. Urgent Decision- intended for some problems
that occur rapidly and may cause serious
consequences if not dealt with urgency.
5. Problematic Decision- must be taken when a
difficulty has emerged and there is no obvious
solution.
6. Consultative Decision- involves those who are
affected by the results of the decision.

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DECISION-MAKING PROCESS NSTP101

Box 1 - Leaders should achieve success, at

least in the short term, but they may leave
longer term problems as their 'selfish'
decision making is restricted through not
listening enough to others. They are the
ideal short term solution in rapidly changing
or conflict situations where decisions need
to be made quickly and followed through.

Box 2 - Leaders are ideal in short term

stable situations, and in the long term, but
they may not work too well in short term
rapidly changing or conflict situations.

Box 3 - Leaders may enjoy some success in

the short term if there is sufficient overlap of
personal needs with the needs of the team.
Leader will fail in long term due to all
decisions being made to fulfil own
emotional needs.

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DECISION-MAKING PROCESS NSTP101

Box 4 - Leaders may enjoy some success in
the short term, dependent upon the makeup
of the team members. Leader will fail in
long term due to all decisions being made to
satisfy the emotional needs of other team
members.

Key Steps in Decision-making by Systematic Approach

 Setting objectives
- Define the purpose of the decision and
consider what outcomes or objectives it will
achieve

 Collecting Information
- Have sufficient information for the choices
you need to make

 Identifying Alternative Decision

- Look at all possible decisions-

 Evaluating Options
- Involves determining the extent to which
the decision options meet the decision
objectives
 Selecting the Best Option
- After the evaluation, the “best” option is
selected using anyone of a number of
techniques or approaches

Difficulties in Decision-making
1. Fear of Consequences - The possible outcome
of an impending decision may bring division and
disagreement.
2. Conflicting Loyalties - When one person is a
member of a number of groups, thisfrequently leads
to divided loyalties about decisions.

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DECISION-MAKING PROCESS NSTP101

3. Interpersonal Conflict - Personal differences
occur which provokes feelings of affection or
dislike among members and which interfere with
sound decision making. Often another member who
is not involved in the interpersonal conflict can
bring the real problem into the open.
4. Hidden Agenda - One person may try to get the
group to make a certain decision, which he wants
for reasons which he will not share with the group.
5. Blundering Methods - A group may be so bound
by rigid procedures that there is little chance for a
free expression of differences. Or a group may
allow itself to substitute personal opinions for
adequate information. Or group may approach the
decision making process without testing for
consensus.
6. Inadequate Leadership - A leader may hinder
good decision making if he restricts the expression
of opinion or discussion on issues too soon. Leaders
also may fail to provide assistance in selecting
appropriate methods for decision making or be
insensitive to the factors causing difficulty in the
group.
7. Clash of Interest - Sometimes different groups
or individuals within an organization do have
opposing interest. Conflict Resolution and Styles
and Problem Solving

CONFLICT – a sharp disagreement or clash of ideas,

interest, etc.
1. “Win-Lose” Style - One party in a
conflict situation seeks to meet individual
goals at all cost, without concern for the
needs of his opponent or their relationship.
2. “Yield-Lose” Style - One party view the
relationship with the other party as the most
important consideration and not the
attainment of one‘s goals. The party using
this style yields and loses his position.
3. “Lose-Leave” Style - One party has low
concern for both the goals and the

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DECISION-MAKING PROCESS NSTP101

relationship with the opponent. He loses by
default through withdrawing from the
situation.
4. “Compromise” Style - One party has a
moderate degree of concern for both the
goals and the relationship with the opponent.
The party will try to reach a ―compromise
or what is known as the ―win some - lose
some effect.
5. “Integrative” Style - One party has a
high concern for both the goal and the
relationship with the opponent. The conflict
is resolved by working collaboratively with
all concerned parties so that everyone will
end up a winner. This is also known as
―win – win style.

RESOURCES

 National Service Training Program Module (n.d.).

Manila: Mapua Institute ofTechnology
 National Service Training Program (2014).
Valenzuela: Pamantasan ng Lungsod ng Valenzuela
Retrieved
 from http://www.mindtools.com/pages/article/newTE
D_00.htmRetrieved from http://www.winning-
teams.com/leadership.html

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