BASICS OF DECISION-MAKING

Prepared by:
GRACE D. ALINCASTRE, RCRIM,.MSCJ
Introduction
Life is all about making decisions. From getting out of bed in the morning until you call it a day, we are
constantly making choices and making decisions. Whether it is your personal or professional life, you are often
defined by your decisions. Some of your decisions are mundane and almost automatic such as brushing your
teeth and taking a bath, while some tasks require minor decision-making such as planning your daily schedule.
However, in a professional environment, decision-making skills can make all the difference as they can
determine your growth and future career development. Depending on your role in an organization, your
decisions can also impact other employees and even the overall image of the business.
When it comes to challenges and taking critical decisions, a lot of people shy away from taking responsibility.
However, people with a decisive approach and a knack for taking well-measured and well-timed decisions are
automatically regarded as leaders.
By honing your decision-making skills, you can create a strong bond with your colleagues and create a
harmonious environment around you.
DECISION
MAKING
• is the process of making
choices by identifying a
decision, gathering
information, and
assessing alternative
resolutions. Using a step-
by-step decision-making
process can help you
make more deliberate,
thoughtful decisions by
organizing relevant
information and defining
alternatives.
 In psychology, decision-making is
DECISION MAKING regarded as the cognitive process
 resulting in the selection of a belief
or a course of action among several
possible alternative options. It could
be either rational or irrational.
The decision-making process is a
reasoning process based on
assumptions of values, preferences
 and beliefs of the decision-maker.[1]
 Every decision-making process
produces a final choice, which may
or may not prompt action.
Types of Decision Making

1. Programmed And Non-Programmed Decisions:

Programmed decisions are routine and repetitive in nature. Non-programmed decisions

are not routine or common in nature.
2. Operational and Strategic Decisions

Operational decisions are just the normal functioning of the organization. These
decisions do not require much time and take a shorter time as compared to other
decisions taken. Ample of responsibilities are delegated to subordinates. The main
decision is to create harmony in an organization and to see whether the management is
proper or not. 

Strategic decisions include all present issues and problems. The main idea is to achieve
better working conditions, better equipment, and efficient use of existing equipment, etc.
Types of Decision Making

3. Organizational and Personal Decisions

If the decision is taken collectively keeping in mind the organizational goal, it is known as
the organization goal, and if the manager takes any decision in the personal capacity
(affecting his/her life). It is known as personal decisions. These decisions may
sometimes affect the functioning of the organization as well. For example, if the employee
has decided to leave the organization, it may affect the organization. The authority of taking
personal decisions cannot be delegated and is dependent on the individual itself.

4. Major and Minor Decisions

These are classified as the type of decision-making in management where decision-related
to purchase of new premises is a major decision. These are taken by top management
whereas the purchase of stationery is a minor decision. Minor decisions can be taken by the
superintendent.
Types of Decision Making

5. Individual and Group Decisions

When the decision is taken by an individual, it is categorized as an individual decision.

Usually, routine decisions are taken by individuals within the policy framework of the
organization.
Group decisions are taken by a group of individuals in the form of a standing committee.

6. Tactical and Operational Decisions

Decisions that are pertaining to various policy matters in the organization are known as
policy decisions. These are taken by top management and do have a long-term impact on the
organization. For example, decisions regarding the location of the plant or volume of
production. These are tactical decisions
Operational decisions are all day-to-day decisions that need to be taken for the proper
functioning and operation of the organization. These can be taken by middle or lower-level
managers. For example, the Calculation of bonuses given to each individual is an operational
decision and is performed by middle or lower-level managers. 
DECISION
MAKING PROCESS
The decision-making process is choosing
among two or more courses of action for a
given situation. Making decisions is a part of
everyday life. Some consider it an art, others
a proficiency. Decisions may be personal or
professional, but, in each case, the choices
will often have lasting consequences. In other
words, the decisions we make have the
potential to affect ourselves and others in the
short and long term. Therefore, it is valuable
to possess a skill set that will allow you to
reflect and weigh alternatives -- finally
electing the option that is the most
appropriate for each situation.
7 steps of the Decision-making process

• Identify the decision.

• Gather relevant info.
• Identify the alternatives.
• Weigh the evidence.
• Choose among the alternatives.
• Take action.
• Review your decision
3 C's of Decision-
making
• Clarify - Clearly identify the decision
to be made or the problem to be
solved.
• Consider - Think about the possible
choices and what would happen for
each choice. Think about the positive
and negative consequences for each
choice.
• Choose - Choose the best choice!
 The 6 skills for
Decision-making
The DECIDE model is the acronym of 6 particular
activities needed in the decision-making process:
• (1) D = define the problem,
• (2) E = establish the criteria,
• (3) C = consider all the alternatives,
• (4) I = identify the best alternative,
• (5) D = develop and implement a plan of action, and
• (6) E = evaluate and monitor the solution and feedback
when necessary.

The DECIDE model is intended as a resource for health care

managers when applying the crucial components of decision
making, and it enables managers to improve their decision-
making skills, which leads to more effective decisions.
 IMPORTANCE OF DECISION-
MAKING
The meaning of decision-making is strongly connected with management roles. Whether you create plans
or organize discussions, give orders or advice, approve plans or reject them, every action involves
decision-making. Thus, it can be considered an essential function of management.

Such decisions also need to be taken even by managers in government or social service enterprises where
profit is not the criterion of success.
DECISION-MAKING AND ITS
IMPORTANCE IN PROBLEM-SOLVING
The importance of decision making lies in the way it helps you in choosing between various options.
Before making a decision, there is a need to gather all available information and to weigh its pros and
cons. It is crucial to focus on steps that can help in taking the right decisions. There is a strong correlation
between decision-making and problem-solving.
VARIOUS WAYS IN WHICH
DECISION-MAKING CAN
HELP SOLVE PROBLEMS
1.STEP-WISE APPROACH:
Decision-making is not a random process. Before taking crucial
decisions that can have a long-term impact on individual as well as
organizational goals and performance, it is important to avoid
various challenges.
Many times, we tend to get influenced by the majority opinion. Even
if you feel that the group is not moving towards the right decision,
you are scared of voicing your opinion due to the fear of isolation.
A systematic decision process ensures such erroneous situations are
avoided.
VARIOUS WAYS IN
WHICH DECISION-
MAKING CAN HELP
SOLVE PROBLEMS
2.IMPACT ANALYSIS:
By using the correct approaches and ethical
decision-making processes, we can evaluate the
impact of different choices. For instance, it is
important to know whether a decision is long-term
or temporary. We can assess the impact that a
decision might have on people in the organization
and whether they will feel happy about it or not.
VARIOUS WAYS IN
WHICH DECISION-
MAKING CAN HELP
SOLVE PROBLEMS
3.FINDING DECISION
ALTERNATIVES:
The decision-making process
brings to fore skills such as
probing and creativity. By using
probing skills, you can gather
more information about the various
alternatives and creativity can help
you in finding options that were
previously not known.
VARIOUS WAYS IN WHICH
DECISION-MAKING CAN
HELP SOLVE PROBLEMS
4.FUTURE FORECASTING:
The importance of decision making is amply
seen in its ability to allow future forecasting.
When we make a decision through a systematic
process, we can calculate the likely impact of
the decision on a business’s future growth
VARIOUS WAYS IN
WHICH DECISION-
MAKING CAN HELP
SOLVE PROBLEMS
5.EVALUATING VARIOUS OPTIONS
One of the characteristics of decision-making is
that it is a fact-based process. Before making a
decision, we gather all information about the
various options and evaluate their feasibility and
impact on the company’s present and future
scenarios. This gives us the ability to make ethical
decisions that are generally also the right
decisions.
VARIOUS WAYS IN
WHICH DECISION-
MAKING CAN HELP
SOLVE PROBLEMS
6.RISK ASSESSMENT:
Strong decision-making skills are crucial in
the risk assessment of decisions. They give
us the ability to not only take the various
options into account and weigh their pros
and cons but also to assess the risk. By
thoroughly evaluating all the options,
market scenarios and past data, we can
anticipate the chances of success and
prepare for worst-case scenarios. Such a
risk analysis comes handy for contingency
planning as well as during any course
corrections.
 7.IMPACT ON HUMAN RESOURCES:
◦ Good decision-making can reap rich benefits for
the organization. It can help foster a collaborative
work environment and create clarity of
VARIOUS WAYS IN communication among various stakeholders. By
WHICH DECISION- adopting group decision-making processes, it is
possible to make different team members
MAKING CAN HELP understand each other’s perspectives, strengths
and weaknesses.
SOLVE PROBLEMS
VARIOUS WAYS IN WHICH
DECISION-MAKING CAN
HELP SOLVE PROBLEMS
8.LEADERSHIP AND EMOTIONAL MANAGEMENT:
Strong decision-making helps solve problems promptly and creates a
leadership position for the decision-makers. Strong decisions should be
impartial and devoid of any emotional influences that might make us overlook
shortcomings. Such decision-making should also be transparent and logical.
These aspects of decision-making reduce stress and friction and increase
cohesiveness as well as mutual understanding among team members and
respect for the leaders.
THANK YOU!
END OF PRESENTATION