Importance of making decisions

Contents

When deciding on what to wear each day, most people use the decision-making process. true or false

Measuring Tradeoffs Using the Production Possibilities Frontier The production possibilities frontier (PPF) is an economic model, in the form of a line graph, that shows how an economy might use its resources to produce two goods. The graph shows all possible combinations of those goods that can be produced using the available resources and technology fully. It also helps us see the tradeoffs involved in devoting more resources to the production of one good or the other. Figure 2.4A shows a PPF for Robinson Crusoe’s one-person economy. It focuses on the production of two foods that Crusoe had access to while on the island: coconuts and fish. In this hypothetical example, Crusoe can use the four hours he spends each day for food production by gathering coconuts or fishing. With the items at his disposal, he can harvest an average of 10 coconuts an hour in the forest or catch 10 fish an hour on the beach. The sloping line on the graph shows the various combinations of coconuts and fish that Crusoe can produce in a day. That line, known as the production possibilities curve, is straight in this simple case. In the more complex example you will look at next, the line bows outward in a curve. This line is also called the production possibilities frontier because it represents the best that this economy can do with its current factors of production. Without better tools (capital) or more time devoted to food gathering (labor), Crusoe will never produce more than any combination of coconuts and fish shown along the line graph.

5 Steps to Good Decision Making

Each day we are faced with situations in life that require us to make choices. Some of these choices are easy, and at times, some of them can be difficult. Easy decisions consist of things like what clothing you should wear; most people choose what to wear based on the season of the year, the weather of the day, and where they might be going. Other easy decisions consist of things like what to eat, what movie to see, and what television programs to watch.

Decisions that seem to be the most difficult are those that require a deeper level of thought. Examples of difficult decisions consist of things like where to attend college, what career path would be best, and/or whether or not to marry and start a family. These types of decisions are difficult because they are life changing decisions; they shape who we are, and they shape our future.

Making good decisions is a method that must be learned. It is not something with which we are innately born, but merely a step by step process that is usually ascertained from life experience. Most adults know that experience can be a costly, ineffective teacher that teaches more bad habits than good; and because decisions can vary so obviously from one situation to the next, the experience gained from making one important decision is often times of little or no use when another decision-making problem arises.

When decision making, there are many steps that can be taken; but when making good decisions there are really only five steps that need to be considered. These steps are as follows:

Step 1: Identify Your Goal

One of the most effective decision making strategies is to keep an eye on your goal. This simply means identifying the purpose of your decision by asking yourself what exactly is the problem that needs to be solved? And why does this problem need to be solved?

Figuring out what’s most important to you will help you make good decisions. When you know the reason why you have making a particular decision; it will better serve you in staying with it, and defending it.

Step 2: Gather Information for Weighing Your Options

When making good decisions it is best to gather necessary information that is directly related to the problem. Doing this will help you to better understand what needs to be done in solving the problem, and will also help to generate ideas for a possible solution.

When gathering information it is best to make a list of every possible alternative; even ones that may initially sound silly or seem unrealistic. Always seek the opinions of people that you trust or speak to experts and professionals, because it will help you to come up with a variety of solutions when weighing all your options for a final decision. You will want to gather as many resources as possible in order to make the best decision.

Step 3: Consider the Consequences

This step can be just as important as step one because it will help you determine how your final decision will impact yourself, and/or others involved. In this step, you will be asking yourself what is likely to be the results of your decision. How will it affect you now? And how will it affect your future?

This is an essential step because it allows you to review the pros and cons of the different options that you listed in the previous step. It is also important because you want to feel comfortable with all your options and the possible outcome of whichever one you choose.

Step 4: Make Your Decision

Now that you have identified your goal, gathered all necessary information, and weighed the consequences, it is time to make a choice and actually execute your final decision. Understanding that this step can cause some people a lot of anxiety is important because this is where you have to trust your instincts.

Although you may still be slightly indecisive about your final decision, you have to take into account how this makes you feel. Ask yourself, does it feel right? And does this decision work best for you now, and in the future? When you answer those questions back, you should feel good about the result.

Step 5: Evaluate Your Decision

Once you have made your final decision and put it into action, it is necessary to evaluate the decision and the steps you have taken to ensure that it works. This final step is probably just as important as step one, if not more important, because it will help you to further develop your decision making skills for future problems. This step is also fundamental because it may require you to seek out new information and make some changes along the way.

Remember, this step requires some patience and it can also encourage perseverance. Why? Because it may take some time to see the final outcome. Recognizing that if the first decision is not working, you may have to go back to step two and choose another option.

Always looking for and anticipating unexpected problems will help alleviate undue stress, if and when a problem occurs. Although these five steps can help assist in simplifying the decision-making process, there are some common drawbacks that you must also take into account. Consider these:

Misidentifying The Problem

Many times the problem will be obvious; but there may come a time when identifying the main problem is not that easy. When this issue arises, figuring out exactly what it is, and where you need to focus your efforts will save you a lot of time and energy in the long run.

Having a Single Source

When considering the consequences, you must be open to a broad choice of alternatives in order to find the best solution. This can become a problem if you rely solely on a single source of information because that one source may not b reliable, or may not be completely inline with the problem; thus altering your chances of making the best decision.

Having Too Many Sources

Having a variety of sources is usually not a bad thing; but not in every situation. Collecting as much information as possible can be very helpful at arriving to a decision, but an overload of information can leave you confused and misguided, and prevents you from following your intuition. Remember, trusting your gut instincts is a major key to making good decisions.

Overestimating the Outcome

When making a decision and putting your plan into action you should have taken care to weigh all your valid options. Making a decision based upon an outcome that may not be plausible will not help you solve the problem.

Poor Timing

Time can be a futile friend. Sometimes it is good, and sometimes it is not. When making major decisions, it beneficial to take your time in order to make the best choice from your options. But understanding the timing process is crucial because sometimes it is best to delay a decision, and other times delaying a response can cause more problems. There are also times when making a quick decision is advantageous because it allows you more time to make necessary changes should problems arise.

In summary we all have to make many decisions throughout our daily lives. Some of these decisions require little effort, while others require more time and deeper thought before coming to a final solution. Remember, there are five basic steps to good decision making. Why is those five the ideal number? Because a significant part of decision making skills is understanding and knowing a simple technique; and also regularly practicing that technique.

When there are more steps than we can count on one hand, most people tend to either forget a step, or misconstrue the order in which the steps must be taken. If you follow these five steps, and also remember the common pitfalls previously addressed, you will be well on your way to making good decisions for yourself.

For more information on decision making skills, you can read: Smart Choices: A Practical Guide to Making Better Decisions by Hammond, J.S., Keeney, R.L., and Raiffa, H., The Right Decision Every Time: How to Reach Perfect Clarity on Tough Decisions by Kopeikina, L., or How We Decide by Lehrer, J.

About the Author

Kescia D. Gray, RN, MS, PHN, CHES is the owner and president of GrayKo Clinical Consultants, LLC. Previously published in Corporate Wellness Magazine, she is also an international author and speaker. Some of her most recent works includes co-author of Raising Healthy Children in an Unhealthy World, The Teen Handbook for Self-Confidence, and Transformation: Reinventing the Woman Within.

About GrayKo Clinical Consultants, LLC

GrayKo Clinical Consultants, LLC is a health and wellness education company dedicated to providing quality education programs, workshops, in-services, and seminars tailored to individuals, groups, and corporate clients.

Their detail-specific program plans can be customized to fit your needs in order to foster success at meeting your goals of better health, increased productivity, job satisfaction, health safety, and more.

Subject content related your needs and the needs of your company may include, but is not limited to stress management, emotional wellness, personal development, diet, and exercise. To contact Kescia Gray, please call (866) 653-2570.

Master the Decision Making Process With Matt Bodnar

Table of Contents Master the Decision Making Process With Matt Bodnar

  1. A Fellow Podcaster
  2. The Great Investors
  3. Compound Decisions
  4. Analysis Paralysis
  5. No Decision is Still a Decision
  6. Decision Journal
  7. Two Mind-Sets
  8. Embrace Discomfort
  9. Always a Silver Lining
  10. Show Notes

Do you hate making a decision? Sometimes the fear of making a decision means we miss out on a good opportunity. Today we will get you off the fence and show you how to master the decision making process with Matt Bodnar.

We make dozens of decisions every day. Some of them are minor like what to wear to work, and some are major like deciding between buying a rental property or a house to live in. When you learn to master the decision-making process you can improve every aspect of your life, your job, your health, your relationships and not least of all, your finances.

    A Fellow Podcaster

    Matt Bodnar, named to Forbes “30 Under 30 List,” has been called a “Rising Restaurateur Star” by the National Restaurant Association and a “Strategy Pro” by Restaurant Hospitality Magazine. He is a partner at early stage investment firm Fresh Hospitality where he focuses on deal-making and strategy.

    Matt is also the creator and host of “The Science of Success” a #1 New & Noteworthy podcast, with almost one million downloads. The podcast is focused on improving decision-making, understanding psychology, and sharing insights from experts.

    Matt previously worked as an import/export consultant in Nanjing, China and spent several years at Goldman Sachs before returning to his family roots in the hospitality space.

    The Great Investors

    Matt became very interested in what commonalities the world’s great investors like Warren Buffett and Charlie Munger had in common. Was it that they were smarter than everyone else? Was the ability to make money through investing some innate trait they were merely born with?

    Through his research, Matt concluded the one thing not only all great investors but all successful people in any pursuit shared was the ability to make the right decisions.

    Get our best strategies, tools, and support sent straight to your inbox.

    Compound Decisions

    We know how powerful compounding interest is when it comes to growing our money. We can use that same power when it comes to improving our decision-making abilities.

    If we strive to make our decisions just 1% better each day, every part of our lives those decisions touch will improve.

    How do you make that 1% improvement? By having as much information as you can, that will help make a decision. If you’re trying to decide between two job offers you want to know what the pay is, what the benefits, both financial (401k, insurance benefits) and non-monetary (vacation time, flex scheduling, telecommuting) are. What is the culture like at each company? What do you want out of a new job?

    Really grill yourself when you have to make a decision so you can pull out the answers that will help you make the correct decision.

    Analysis Paralysis

    Have you ever gone clothes shopping knowing that you need new clothes but without much of an idea of what you want to buy? You spend forever looking and may come away with nothing. That can happen when we don’t have a plan and are faced with too many choices.

    Analysis paralysis can be, well, paralyzing. We have so many choices and so much information at our fingertips. When you are trying to pick a stock there is more information available than you could read and much of it; maybe you won’t even understand. But you still have to choose.

    So you go back to asking yourself questions. Does this company make a product I believe in? Does this company act in ways that align with my ethics? By asking these kinds of questions, you can start to narrow your list of choices down until the right choice becomes obvious.

    No Decision is Still a Decision

    Of course, not making a decision is a decision in itself and can have worse consequences than making the wrong decision. It’s scary though because making a decision means lots of other possibilities are cut off.

    But having made a decision always feels better than having to decide. You’ll feel calmer even if you aren’t 100% sure that you’ve made the correct decision. And if you have made the wrong choice, you can learn from it and use the lesson to make better decisions going forward, something you miss out on when you are too afraid to decide.

    Decision Journal

    Okay, you’re ready. You want to master the decision-making process. How can you do that? Is it like a muscle that you can grow through regularly using it?

    Start a decision journal. You don’t need to document the little things like what you decided to have for dinner (unless poor food choices are something you are trying to overcome), but you should aim to fully document one decision a month, a reasonably impactful one like whether to pay off debt or invest with that money.

    When you journal your decision-making process, you have the benefit of hindsight. You can read back through it and see a pattern emerge. Maybe you think only in the short-term, or maybe your decisions are too fear based. When you discover that pattern, you can take steps to correct it.

    Two Mind-Sets

    There are two types of mindsets when it comes to making decisions; the limiting mindset and the growth mindset.

    The limiting mindset is a belief you have that gets in the way of achieving what you are truly capable of. You think something is always true; you can never save money, you will never be happy with your job. Thoughts like these are very destructive and can cause you to sabotage yourself over and over.

    You might not even be aware of having this kind of mindset, it’s part of your subconscious and is rooted in fear.

    You can break out of that by developing a growth mindset. People with a growth mindset believe that they can improve their abilities (like decision making) through dedication and hard work. That comes back to asking questions. What is that fear? How can I learn from my past mistakes? What are the most apparent bad decisions I have made in the past and can make now or in the future? Let me not make those.

    Nothing is set in stone. Focus on learning and growing. You can revamp the way your brain thinks. Neuroplasticity describes how things we experience create new neural pathways in our minds. When we learn new things there are functional changes in our brains; new pathways are formed.

    A compelling explanation of this is how people typically react in a plane crash. Some people will try to gather their belongings before escaping a burning plane. Why? It seems crazy. But there is a path in our brain that was forged the first time we exited a plane and reinforced every subsequent time we did it.

    You stand up, gather your things and walk off the plane. The brain doesn’t have a pathway to tell us what to do when the plane has crashed, so we do what we have always done. But just by thinking of what you should do in the event of a plane crash, leave your things and get out as quickly as possible, a new pathway has been formed, and we will know what to do in the event of a plane crash even though we have never actually done it.

    Gathering your things from a burning plane before exiting is the limiting mindset. Just getting the hell off the plane is the growth mindset. You can revamp your brain.

    Embrace Discomfort

    Making decisions is uncomfortable, and some of us put it off for as long as possible. But discomfort is part of life and avoiding it makes it harder to take. Make it a habit of embracing discomfort. Do one scary thing every day, something that might end up in rejection.

    Ask for a discount when you buy your coffee. Find someone “out of your league” and ask them out for a drink. Approach 300 strangers and ask them to take a selfie with you in a month (don’t do this in NYC, you’ll get maced).

    Getting used to being uncomfortable on an innocuous day to day situation can help you get more comfortable making important decisions.

    Always a Silver Lining

    Not every decision we make will be a good one or the right one. But each one can be a learning opportunity, so the next decision and the next and the next are better than the last.

    Show Notes

    Riverhorse Tripel Horse: A Belgian style ale brewed with spices.

    The Science of Success: Get the guide to making better decisions.

    The Science of Success Podcast: Unleash your human potential.

    Mindset: The book that changed Matt’s life by Carol Dweck.

    Seeking Wisdom: Peter Bevelin

    Poor Charlie’s Almanack: Peter D. Kaufman and Ed Wexler

    Predictably Irrational: Dan Ariely

    Influence: Robert Cialdini

    Thinking Fast and Slow: Daniel Kahneman

    Candice Elliott is a substantial contributor to Listen Money Matters. She has been a personal finance writer since 2013 and has written extensively on student loan debt, investing, and credit. She has successfully navigated these areas in her own life and knows how to help others do the same. Candice has answered thousands of questions from the LMM community and spent countless hours doing research for hundreds of personal finance articles. She happily calls New Orleans, Louisiana home-the most fun city in the world.

    Decision making in business is very important that deals with the decisions that are made on behalf of the organization. It sometimes has an option on poor choices but it will be legal. Once there is a clear understanding of the problem then the decision can be made in an alternative manner.

    Decision Making Meaning?

    Decision making is a process of selecting a formal choice among the given options. For an effective decision-making process, one must be in a stable mind to weigh both positive and negative options. One should determine which option will suit that particular situation. In an organization decision making will be done by the higher authorities upon the analysis and critical thinking of the company.

    Role of Decision Making in One’s Life:

    The ability to choose the right choice depending on the problem it has is a matter of decision making. It is important to understand the process of individual decision making.

    When a situation arises where taking decisions is an optional way, the individual must be able to take a good decision rather than wavering. The fact is that people with a high range of emotions tend to make good decisions quickly.

    Variables of Decision Making:

    One can improve decision-making skills by recognizing some of the important variables to select the right choice. They are as follows:

    • Levels of decision
    • Styles of decision
    • The decision process that is rational
    • Decision process that is intuitive

    a. Levels of decision:

    The level of the decision deals with the questions that are faced during the decision making process. Here the possibility is that the decision made is accompanied by the risk. One must select the option by asking certain questions such as:

    • How important is the decision?
    • How complex is the situation?
    • How much critical decision making is?

    b. Styles of decision:

    These styles deal with the degree of participation in the process. In the corporate world, participation is considered as a time-consuming activity. It involves arguments, debate to prepare evidence for good decision making. Here the questions that arise are:

    • To which extent others should be involved in taking the right choice?
    • What are all the conditions that involved in decision making?
    • Which technique is opted to select the right decision?

    c. The decision process that is rational:

    Rational is something that is agreeable to a certain reason. It acts as a classic approach to decision making. It has sequential steps and the desired solution. It deals with problem identification and corresponding alternative method to solve it. Here the analysis of the problem is done in different factor to determine the decision that is to be taken.

    d. The decision process that is intuitive:

    The intuitive decision is the mindset of the people upon how the judgment has to be given based on the consequences of the problem. It is less structured that relates to the feelings, perceptional judgment rather than analyzing the fact. The decision may not be either-or but an exact solution will be obtained.

    Process of Decision Making:

    Decision-making process involves:

  1. Defining the problem
  2. Clarifying the objectives
  3. Identifying the alternative method
  4. Analyzing the consequences
  5. Making the right choice

1. Defining the problem:

Problem definition has its own way of taking an initial assessment. It has to be identified and analyzed from all the possible ways to sort it out. Here one can find the possibilities that dissect the problem.

It helps to find the root cause of the problem and deal with possibilities to solve the problem. And analyze the connection between the problem and the cause. This helps in developing better problem-solving skills.

2. Clarifying the objectives:

The objectives deal with taking and collecting points on the address and hope of the problem. It changes the specific objectives in a concerted manner. And it provides a separation between the ends to explore new objectives.

It clarifies the path towards each objective. To test each objective, one must concentrate on capturing their interests.

3. Identifying alternative methods:

One must think about possible ways to handle the situation. He/she must expand the search within the network and even the help obtained from the experts. One must take care of each and every objective and must know how and when to stop it.

This identification of alternative methods dealt with already experienced people and experts to take a worthy decision.

4. Analyzing the consequences:

One must analyze the consequences mentally by viewing him/her in the future. It involves process analysis that helps in solving problems from beginning till the end. It suggests what will happen in each stage of the problem analysis.

It also eliminates the inferior alternatives. It provides a concise view of the remaining members of the organization. This supports both objectives and alternatives.

5. Making the right choice:

This stage comes after the analysis of consequences. The analysis has to be done until the right choice or the right alternative is found. In certain situations, one must find a simple alternative that will help in maximizing the benefits of the organization.

One must try to choose an alternative accurately. The method chosen after detailed analysis will help in the switch over to the other alternative without causing a lot of trouble.

How to Make Better Decisions?

One can make a better decision by opting to the framework of the negatively influenced factors. An instinct should be present in everyone’s mind that the act of misunderstanding, misguidance may rule one’s life easier.

Here are a few techniques that help in making better decisions:

a. Increase in one’s knowledge:

It depends on the research that he/she has done to overcome the problem. Asking and experiencing questions and researching and consulting about the facts found. One must try to maintain the objectivity of the analyzed facts.

b. Using the intuition:

The individual must try to make a decision based on the accumulated knowledge and experience gained in it. Sometimes these intuitions make one to take wrong decisions. It is also defined as a process of making decisions in non-sequential mode. One must have good gravitate styles to take an intuitive decision.

c. Consider multiple options:

Selecting multiple options, one may feel like playing a major role. Here all the list of options should be again considered as the alternative options. One must try to make the right decision with a proper mindset.

Distractions might lead to wrong decisions, so one must always consider the pros and cons of the considered alternative.

d. Balancing risks and rewards:

The balance that is provided between risk and reward is to be maintained. While taking decisions one must be able to concentrate on the good deeds of the decision taken then the bad deeds. Once if the decision is taken the individual must think of the worst and best things that would happen.

Factors of Effective Decision Making:

Effective and good decision making can be done when the cause and the consequences of the problem are analyzed effectively. The factors that help in making effective decisions are:

  • Perception
  • Goals
  • Priority
  • Values
  • Judgment
  • Acceptability
  • Demands
  • Risk
  • Resources
  • Style

The Decision Making Process Involves the Following Criteria:

  1. Constructing a clear picture of what has to be decided.
  2. Compiling the list of requirements that are to be met.
  3. Collecting the information to meet each and every alternative.
  4. Comparing the alternatives to meet the requirements.
  5. Considering the wrong factors in each scheduled alternative
  6. Committing to a decision and following it throughout.

Inherent Traps in Process of Decision Making:

One must strive hard to stay away or to deal with it safely. Thoughts and analysis let the biases and fear to tilt in its own way. The problem of losing the mind in minutia upsets the decision-maker in an organization. Craving for the approval and trying to the realm the authority of it helps one to take the right decision. One will fall into the trap if the failure to achieve the target is clearly noted.

Importance of Decision Making Skills for Students:

Decision making plays a vital role in the life of students. It diverts the students from falling into the trap that manages the students and saves their career life.

The ability to distinguish between choice and needs plays a vital role in the life of students. It promotes self-determination on how to make good decisions and choices.

Here are a few strategies that followed while taking decisions. They are as follows:

1. Self – determination:

Self-determination is a combination of knowledge, belief, skills that enable students to become goal-directed, autonomous behavior and even self-regulated. This is enhanced with knowing and valuing oneself, planning, acting, experiencing and learning from the outcomes.

2. Learning disabilities:

These learning disabilities experienced by the students for which they have to acknowledge the available resources. They should try to disclose their weakness with the concerned member as they may try to help the students.

3. Understanding strengths and weakness:

If the student is capable of understanding the strengths and weakness then they must try to make effective decisions and an alternative method to obtain it.

4. Helplessness:

Helplessness deals with the effects of failure in which one can predict the past and future effects of failures. It often leads to a lack of positive and effective decision making skills. The accuracy has to be found within the strength and weaknesses and even the preferences taken into account.

5. Socialization skills:

Socialization skills are usually decided learned from special education or through individual tutoring methods. The majority of students fail in effective decision-making skills. It helps in understanding and learning the skills of making different alternatives.

These instructions enable the students to make them learn infused counseling of various programs, dealing with academic support classes that include extra-curricular activities. This instruction provides effective choices for figuring the disabilities within the students.

Importance of Decision-Making Skills for Managers:

A manager must constantly try to make good decisions in advance. He/she must try to cope with the issues that the organization faces. It matters from the planning stage to controlling or settling.

Here it deals with the entire organization’s policies and goals. The manager should be capable of getting the quick and correct solution for the problem faced. It involves:

  • Better usage of resources.
  • Facing challenges and problems.
  • Dealing with business growth.
  • Increasing overall efficiency.
  • Achieving objectives.
  • Innovating new ideas.
  • Motivating employees.

Right Decision Making in Management:

Decision making is done in a wise manner by a person who follows his instincts and knowledge. It represents one’s own actions done in a wise manner to achieve the objectives.

The manager must possess all the managerial functions such as planning, organizing, directing, staffing, coordinating and controlling the employees.

Decision making acts as the core of all the processes in the organization. This decision making sometimes contributes to the following:

  • Uncertainty
  • Complexity
  • The consequence of high risks
  • Alternatives
  • Interpersonal issues

The manager in an organization must focus on step by step process which is given below:

1. Creating a constructive environment
2. Investigating the situations in detail
3. Strive for the best alternative
4. Establishing new options
5. Selecting the best solution
6. Evaluating one’s plan
7. Communicating with other members of the organization
8. Taking actions discussed in decision making.

Thus decision making plays a vital role in everyone’s life. It optimizes the destruction and focuses on concentration towards achieving the goals either in an organization or in a career. The more the information is collected, easier the decision-making task will be.

The final decision that is fixed must be trustworthy and should not be biased data.

The Importance of Learning How to Make Decisions

Making choices and decisions is a part of life. Simply put, the way life unfolds—with its twists and turns, starts and stops—requires us to make choices and decisions every step of the way. So, I find it fascinating and somewhat baffling that by the time young people have reached adulthood, many have not mastered the art of decision-making. In fact, many people dread change because this means they will have to contemplate something different from what they’re used to and maybe even be required to make change.

Why is this so? Well, there may be many reasons, many factors that determine why some people can just dive into life and do what is required with enthusiasm and excitement while others are paralyzed at the thought of having to step up to anything that might require taking action. A person’s temperament, disposition or nature may contribute to the way they view life. Some people are fearless, enjoying risk and adventure, while others are fearful of making change and making mistakes, preferring to stay close to what is familiar and not wandering too far—and that includes their choices and decisions.

Some people have been burned in the past by poor choices and decisions and are afraid to, once again, risk making a bad choice or decision. So they may do nothing hoping the change will work itself out, or go away, or that somebody else will take care of what needs to be done.

Then there’s the issue of children never learning to make decisions because they’ve never been taught how to do it; many of the important choices have been made for them and they may simply have no say in the matter. That may be the fault of parents who try to control too much of their children’s lives fearing that they will miss out on what they, the parents, deem to be important unless they, the parents, jump in to ensure the “proper” course for their children.

The bottom line is that decision-making is something we all need to learn how to do. This very essential life skill should be taught from very early on since decision-making takes years of practice to master. Learning how to make good choices and wise decisions depends upon several factors: a person’s developmental stage/age, having a general idea of right and wrong (and I mean this in the broadest moral sense since individual’s may acquire their own idea of what is right and wrong for them personally as they mature), understanding what the decision-making process entails, and practice!

You may think starting with infants is just too young but that’s not the case.

It’s good practice to reinforce behavior that is unacceptable or potentially harmful. For example, when a baby begins to crawl, finds small objects or dirt on the floor and mouths it, it’s appropriate not only to remove the object but to say “no” and tell the baby why putting this object in their mouth isn’t OK. Even though a baby may not initially understand what you’re saying, by hearing it over and over again they’ll start to make the connection and understand that all behaviors have consequences—some good, some bad.

Toddlers need to be given controlled options. For example, offer the child a choice between two things only. “Do you want cereal or eggs; milk or juice?” “Do you want to wear the green shirt with these blue pants or this dress with leggings?” This allows the youngster to have a voice in making choices that fit into your choices and routine.

Offer choices/options that are reasonable and readily available to young children.

  • Tasks should not be out of their range developmentally. For example, create small jobs that allow your youngster to work beside you, such as dusting the furniture, adding an ingredient or two to a recipe, choosing food at the supermarket, etc.
  • When the child moves into the stage of “I can do it myself,” let them try, with your observation and supervision.
  • Foster responsibility by allowing the child to do some chores/jobs on their own; for example picking up their toys, feeding the family pet, etc.
  • Break down tasks into smaller pieces or steps, showing children that there is an order to how things are accomplished.
  • Encourage, especially when a child is frustrated or loses patience.
  • Offer praise; get excited for a job well-done, especially when it is the accomplishment of a brand new skill such as dressing themselves, riding a bike, or staying dry through the night.
  • For pre-schoolers, expand the number of choices. As a child gets older, their capacity to understand the nuanced difference between right and wrong increases as well as their ability to understand the consequences of their behavior.
  • Frame choices using key words that are simple to understand, such as “Do you think this is a good idea/decision/choice, or maybe not the best?’’ Do you have a better idea, or want to make a different decision/choice?’
  • Ask questions to help the child understand various possibilities: “What do you think will happen if you decide to do ____?” “How will you feel if you do ____?” If doing something involves someone else, such as a friend or a sib, you can ask the child, “How do you think they will feel as a result of a choice you make?”
  • Include your child’s ideas or opinions when it comes to making family decisions. The child will feel heard, their opinion will be appreciated, and their confidence to express themselves will be nurtured. They will also begin to understand that there is a process involved in decision-making.

For school-age children, expand the choices you give them and the importance of the decisions they choose to make. This includes their activities, their friends, school curriculum and educational obligation, and personal choices such as when to go to sleep, style of clothing to buy, pursuit of personal interests such as music, movies, books, and pursuit of special talents and creative abilities such as sports and art. Of course, you as the adult may still make a lot of the important decisions regarding children, but it’s essential to give them the chance to learn for themselves.

Teach the decision-making process.

  • Define the issue. Include the need/reason for the decision.
  • Brainstorm for possible options and/or solutions.
  • Discuss the options, and their potential consequences, and then narrow down to no more than three choices.
  • Pick one of the three choices, formulate an action plan, and follow through.
  • Evaluate the solution. If the solution is satisfactory, your child will have a sense of accomplishment. If not satisfactory, or it falls short of expectation, or is just a bad idea, reconsider other choices/possibilities that may bring a better outcome.

Be available to your child to talk about issues or problems arising from a decision, and to encourage and lend support, especially in light of a poor decision. Making some bad decisions is part of the maturation process.

Teens and young adults should be encouraged to expand their choices and decisions. Recognize that adolescents want to have more control over their lives. They want more independence, more time with friends, and more fun. Encourage your young adult to independently practice decision-making skills whenever possible, with you watching on the sideline. When you single-handedly continue to make choices and decisions important to your child, you undermine his/her self-esteem and confidence.

No one is expected to get things right all of the time. We often don’t. But, having some idea of what to do will help to make the big choices and decisions easier. Good decision-making is one of the most important life skills to own.

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Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

Decision making is a process that plays an important role in our daily lives. Some decisions are not that important whereas other important decisions, when carefully carried out, can change the course of our lives. The purpose of this essay is to analyze the decision making process regarding my move to Australia for the Masters program. “The process of decision making involves making a choice among different courses of action and entails a cycle of activities and events that begins with identification of a problem and ends with the evaluation of implemented solutions” (John Campling, 2006). The process of decision-making can be categorized into programmed (routine) or non-programmed (strategic) decision making (Christensen, 1968). A programmed decision is one that we use in our everyday lives and are applied to recurring, routine problems that are often anticipated. Here we use information from past experiences to solve problems that we are quite familiar with (John Campling, 2006) . Non programmed decisions usually solve problems that are unanticipated and occur less often and rely on personal attributes such as intuition, creativity, experience, judgment etc (Christensen, 1968). Here people must identify the problem and act after assessing plausible alternatives. It usually requires creativity which helps in creating and evaluating alternatives and readiness to take risk which allows us to choose an alternative (Lipicnik, 2002). The type of decision I made was a non-programmed decision because it was applied to a problem that was not a recurring one. It was an issue that I had never dealt with before so I could not draw from my past experiences to resolve the issue and had to rely on my personal attributes such as judgment, and intuition. After completing my undergraduation in Biology in May 2010, I decided to move into a business related field as it has better job prospects. While I was searching for my options, my cousin told me about a Masters degree in Corporate Environmental and Sustainability Management being offered at Monash University in Melbourne. I became interested in the course and started to find out more about it by emailing the course director and consulting with other people. After receiving a lot of positive feedback from people about this course/field, and after consulting with my parents I decided to take the plunge and move to Melbourne.

Group vs. Individual Decision:

When faced with a problem, one of the major issues is deciding whether the decision will be individually made or in a group (John Campling, 2006). Decision making is also organized according to whether it is made by an individual or by a group (Christensen, 1968). There are pros and cons to both individual and group decision making. One of the advantages of an individual decision is that it is often quick and creates less of a conflict that may otherwise arise in a group decision. Advantages of group decisions are that there is usually greater amount of information, knowledge and expertise available and people are able to bring more options/alternatives to the table (John Campling, 2006). My decision to move to Australia to do my masters was a group decision as it involved many people including my parents, friend/cousin and others whom I consulted during my decision making process. As a part of the group decision making progress I was able to receive knowledge and suggestions from multiple sources which was of immense help in my decision making. As I received positive feedback from professors and friends regarding the course I was interested in, my parents became more open to the idea of my move abroad.

Rational Decision-Making Model:

The type of model I will be considering for the purpose of this essay is the rational/classical model which involves following a number of steps which provides a structured approach to decision making (John Campling, 2006). There are certain assumptions and characteristics that form the basis of rational decision-making. For example, decision makers should have clear understanding of the situation and of all available options at hand, and there should be a general consensus on the issue. They should pick an alternative that will maximize their chance of achieving the objectives (Heracleous, 1994). My major dilemma was choosing a course of study for my Masters degree. With all the options available today it is hard to settle on one thing easily. Also, because I came from a science background and because I had never taken a course in business, I was a little hesitant in moving into a business related field. The next step in decision making was to develop objective and criteria, which in my case was to do Masters in a course that would have a good scope in future, and also I was quite keen on working for a corporation. Time and money were also quite relevant to me as this course could be completed in a year and a half and I didn’t want my education to cost my parents an arm and a leg. During the decision making process, I considered other possible alternatives such as finding a similar course back home or working in a research lab for a while before I pursued further studies. When I analyzed the alternatives I realized that the best option for me would be to commence a Masters program as soon as I finished my Bachelors in Biology. The first alternative which was to find a similar course back home didn’t reap satisfactory results as either the cost of tuition or university expectation was too high. The second alternative was to find a job in a research laboratory after graduation. During the recent period of economic downturn, when companies were either laying off people or not hiring in general, I had seen many of my peers struggle to find a job in research laboratories. Ones who did find a job weren’t too happy because they were not satisfied with the hourly wages they were being paid even in reputed companies like Pfizer. My parents on the other hand wanted me to start my Masters as soon as I finished my Bachelors and they too were not keen on the idea of working in low paying research laboratories. Keeping all these things in mind I realized that coming to Monash was the best option as the cost of tuition was going to be somewhat less than universities back home in US and I could finish the course in a year and a half as opposed to the standard two year programs. To implement the solution, I discussed the entire situation with my parents and as soon as they agreed to it, I applied for the program being offered at Monash. A few weeks later I received an offer from Monash University granting me admission into their program. If this hadn’t been the case and I had been denied admission, I would have renewed the process by applying for another program at some other university. A weak point in my plan of action was that I didn’t have a back-up plan as I only applied to one university.

Decision Style:

A “decision style,” which is a decision maker’s cognitive makeup is what influences how the person selects their course of action (Nutt, 1980). According to the decision framework methodology, there are four types of decision making styles: Directive, Analytical, Conceptual and Behavioral. We all use different decision making styles depending on the type of situation or problem we are dealing with, and depending on our psychological state of mind. Regardless of the decision making style we use, it leads to a decision choice that provides the best solution to a problem (Richard L. Daft, 2009). During my decision making process, it was conceptual style that came into play. People who use conceptual style in their decision making are more socially oriented in that they discuss their problems and possible alternatives with others, and gather as much information as they can from all kinds of sources (Richard L. Daft, 2009). I tried to gather as much information as I could about the program and the university by consulting people, including my parents and by researching online. It was only after assessing all available options and alternatives that I decided on Monash.

Conclusion:

Decision making can be quite tricky and challenging in some cases. It is hence important to gather as much information from different sources and evaluate all possible alternatives to the problem or situation at hand before making a decision. Doing so will allow us to arrive at the best possible solution for the problem. My decision wasn’t an overnight one. It took me a couple of months of research and consultations with friends, family and university professors to make a decision. Low cost of tuition and length of the course were also a big influence on my decision. An advantage of my choice was that it was an outcome of research and discussion and there was no conflict in that it was a group decision to which everybody agreed. This significantly decreased the probability of risk in my decision making. I believe my decision was correct and am quite pleased with the way it is turning out as I am enjoying my units in University. If I had made the decision individually and without my parent’s consent, or without any research, it would have increased the probability of risk in any given situation.

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“Decision-making is the selection, based on some criteria from two or more possible alternatives.”- George R.Terry

“A decision can be defined as a course of action consciously chosen from available alternatives for the purpose of the desired result.” – J.L. Massie

In conclusion, we can say that decision making is the process of choosing a specific course of action from various alternatives to solve organizational problems or difficulties.

Importance of Decision-Making

source:www.slideshare.net

Decision making is considered as the backbone for the business management because without taking the right decision at the right time, nothing can be performed. The further importance of decision making can be discussed under the following points:

  1. Achievement of Goal/Objectives:
    Decision making is important to achieve the organizational goals/objectives within given time and budget. It searches the best alternative, utilizes the resources properly and satisfies the employees at the workplace. As a result, organizational goals or objectives can be achieved as per the desired result.
  2. Employees Motivation:
    Decision making is important to motivate the employees within an organization. It provides an overall framework of operation and guidelines to the operating level of staff. It also provides different types of facilities and benefits on time. As a result, employees are motivated to their job or work as per the organizational requirement.
  3. Proper Utilization of Resources:
    An organization has various resources like man, money, method, material, machine, market and information. All these resources are properly utilized without any leakage and wastage with the help of the right decision at the right time. As a result, an organization can operate at a minimum cost.
  4. Selecting the Best Alternative:
    As we know that the problem has multiple solutions. Decision making is important to select the best alternative among various alternatives by analyzing them one by one using various financial, statistical, and accounting tools/techniques.
  5. Evaluation of the Managerial Performance:
    Decision making is not only important to select the best alternative but also essential for evaluating the performance of a manager. The quality/success of the manager largely depends upon the number of right decisions that he/she can take for organizational success. Therefore, decision making is important to judge the performance of the top level of management.
  6. Indispensable Element/ Component:
    Decision making is an indispensable element/ component for organizational success because without taking the right decision at the right time, nothing can be performed as per the plan.
  7. Pervasive Function:
    Decision-making is a pervasive function of managers aimed at achieving organizational goals. Decisions are to be taken in all managerial functions such as planning, organizing, motivating, directing and controlling and in all functional areas such as production, marketing, finance, personnel, and research and development. It indicates that the decision-making is spread over many areas of the organization.

Steps of Decision-Making Process

source:slideplayer.com

For the rationality, reliability, and enforceability of decisions, managers should follow a sequential set of steps. It is said that a decision is rational if appropriate means are chosen to reach desired ends. In this regard, various management authorities have recognized and described different steps in the process of decision-making. Ricky W. Griffin has suggested six steps in the process of decision making. Accordingly, the steps are:

  1. Implementation of Decision:
    After selecting the best alternative, the manager or superior should convert the decision into action. For this purpose, he/she should communicate with their subordinates and manage the various additional resources for the implementation of the organizational decision.
  2. Developing an Alternative Course of Action:
    As we know that a problem has multiple solutions. Therefore, the decision-maker should develop the various possible alternatives for a better decision. While developing the alternative course of action he/she may use their own knowledge, skills, experiences and technical support from the professional planner and experts as well.
  3. Identification of Problem:
    The initial stage of the decision-making process is to identify the exact problem. The problem may occur due to the gap between thinking and do the process. The reason for problems may be internal or external. Decision-makers should identify the correct problems before taking any decision. It is not an easy job or task. Therefore, he/she may use his own knowledge, skills, experience and collect information from internal and external sources. It is believed that the identification of the correct problem is almost half part of the decision-making process.
  4. Analysis of Problem:
    After identification of the correct problem decision-maker should analyze the problem systematically and scientifically in terms of cost, time, legality, organizational resources, and short-term as well as the long-term impact of the problem. While analyzing the problem he/she may use various financial, accounting and statistical tools or techniques.
  5. Selecting the Best Alternative:
    After analyzing the various alternatives, the decision-maker has to select the best alternative among the various alternative by considering the short-term as well as long-term impact. For this purpose, he/she may use his/her knowledge, skills, and experiences. He/she may also concern with other stakeholders for a better decision.
  6. Review of Decision:
    The last step of the decision-making process is to get responses or feedback from other stakeholders of the organization. If the response is positive then the decision-making process is successfully completed. It the response is negative then he/she must go through the first step to take a new organizational decision.
  7. Evaluating Alternative Course of Action:
    After developing various possible alternatives, the decision-maker should evaluate all alternatives one by one for a better decision. In this step, he/she should try to search the answers to the following questions.
    – Whether the alternative is feasible in terms of cost, time, legality and other organizational resources or not?
    – Whether the alternative is satisfactory to solve the organizational problems or not?
    – Whether the features of alternatives are matched with the objectives of the business or not?

Pokhrel, Dhurb Raj et.al., Business Studies-XII, Asmita Book Publication, Kathmandu

Poudyal, Santosh Raj et.al., Business Studies-XII, Asmita Book Publication, Kathmandu

Bhandari, Kedar Prasad, Business Studies-XII, Bundipuran Prakashan, Kathmandu

12 Reasons Why How You Make Decisions Is More Important Than What You Decide

What’s the very first decision you make each day? For some it comes while still in bed. “Should I get up or hit the snooze button?” For those who lay their clothes out the night before, have no children, and are locked into an unwavering morning routine, including the content and quantity of breakfast, that first decision of the day can be postponed. Now that I’ve written that, I’m really curious to know how long someone could actually avoid that first decision. Not that it matters. Avoiding a few dozen decisions in the morning may reduce initial stress, but it’s only a drop in the bucket of what’s to come.

We make thousands of decisions every day. Many are easy, but others are complex, stressful, or both. Because there are so many decisions and because they are literal forks in the road with dramatic impact on results, costs, time, feelings, and relationships, how you make decisions is extremely important. This is why decision-making is a top priority when I work with clients to create a culture of clarity.

The best way to make decisions involves a four-step process that allows you to “SOAR through decisions,” whether alone or in a group. I won’t go into the details of that process now, because I want to focus on the value of having a process, not the process itself. If your decisions actually follow the four distinct steps of SOAR and involve the right people at each of those steps, with transparency, the benefits are numerous and dramatic:

1. You’ll make better decisions.

When you conflate the four steps of decision-making into one muddled discussion, it stands to reason that you won’t make the best decision. Instead, your decisions are more likely to be governed by one of three forces:

  • Fatigue – The winner is the most cohesive idea on the table when the energy expires.
  • Enthusiasm – The winner is the idea most fervently expressed by the loudest reputable group.
  • Authority – The winner is the obvious favorite of the most senior individual.

These forces do not produce sound decisions.

2. You’ll save time and make better use of resources.

A lack of process clarity guarantees a slower, more convoluted path to the desired outcome. Or even a disappointing outcome. This is true whether you are doing something like building a boat or making a decision. If you step logically through a proven process, you will waste less time and make use of the right resources at the right time. If you follow a muddled process to build a boat and want expert help for all aspects of the process, you would have to have all the experts present the entire time and they would be stepping all over each other trying to advise you. You would never build a boat that way. You would learn the process, follow it in sequence, and call on the help you needed at each step. So why do you make decisions by hauling all the experts into a room at one time and trying to tackle all the steps simultaneously?

3. All employees will be able to contribute more effectively.

In the health care world, there is a proven process called SBAR – Situation, Background, Assessment, Recommendation. Because it is widely known and understood, it creates what I call shared process clarity and gets everyone on the same page quickly, knowing what to expect and how to contribute. By focusing on each clear step one at a time, clarity of purpose is also achieved. As a result, the Situation and each subsequent step can be described with great clarity. If other practitioners know something different, they can easily chime in to enhance or clarify. Every employee can contribute more effectively when operating in an environment with this kind of clarity. The same benefits accrue when you “SOAR through decisions.”

4. Professional development is enhanced.

This clarity of purpose and process created by SBAR and SOAR is also tremendously instructive. Each time one practitioner hears another state the Situation or the Background or other, he learns and improves his own ability to formulate relevant information.

The O in SOAR stands for Objectives. These are the goals and constraints – the decision criteria – that must guide the decision. Just think about the developmental value of employees gaining a clear understanding of the criteria guiding decisions that affect them. It is enormous. That understanding is the road to greater business acumen and the priorities and culture of the company. The same applies to the other steps of this or any other process. The clarity of purpose provides tremendous learning.

5. People will accomplish more faster.

When you know exactly what you are trying to achieve, you can do it faster. Period. I doubt that requires more explanation. Speed comes from greater clarity of purpose and process.

6. Commitment will be stronger.

Employees are most committed when they believe decisions are made using a logical, informed, and fair process with their interests represented. Muddled processes don’t provide much evidence of logic, good input, fairness, or representation of interests. Muddled decision processes create skeptics and cynics, not committed employees. On the other hand, if employees believe the people and process were careful and thorough, they will support decisions even when the decisions turn out to be stupid.

7. Employee satisfaction and engagement will improve.

Employee engagement is a hot topic that I discussed a few weeks ago in 10 Reasons Your Employee Engagement Program Is Hurting Your Company. Employee satisfaction and engagement hinge on how easily and effectively employees can contribute (see #3) and whether the organization operates in such a way that commitment is created (see #6). Since how you make decisions directly affects both of those, it will also affect employee satisfaction and engagement.

8. Employees will be able to let go and focus.

When you don’t trust that the people around you are making smart decisions, it is natural to want to be involved so you can try to help prevent disaster or at least will see it coming and avoid a nasty surprise. This is human nature. At the same time, everyone has too much to do. By creating clarity of purpose, process, and roles, people learn to trust the system and let go. Once that happens, they can get back to their top priorities and amp up their ability to focus.

9. Delegation will be easier and more effective.

One of the biggest problems with delegation is that delegating almost anything includes delegating decisions. Well if you treat decisions as one muddled step, your only choices are to do things yourself or throw the task over the wall and hope for the best. However, if all parties have shared process clarity about the steps of making decisions, it is a cinch to delegate a task and arrange for check-ins at appropriate steps.

10. Employees will feel a stronger sense of ownership.

I’m working with a Fortune 100 company right now that gets totally stuck on simple decisions. Why? Because they haven’t figured out what decision they are making and are trying to make several at once.

This, by the way, is Step #1. The S in SOAR stands for Statement – specify the decision you need to make. I’ve observed numerous executive teams who think they are focused but are really working on five decisions and two plans simultaneously. And they wonder why they keep going in circles. Consciously executing Step #1 of SOAR would put them on a fast and clear path to progress.

Meanwhile, this global monster I mentioned has several employees doing their best to collect information and make suggestions and generally drive an agenda without knowing what that agenda is. Give me another week and I’ll have them straightened out. In the meantime, the executive in this case is probably wondering why these employees haven’t taken ownership and made things happen. Add clarity of purpose, process, and roles to this situation and these employees would know what decision they are making, which steps they own, and how to proceed. Clarity of purpose, process, and roles are essential to unleashing ownership.

11. People will make fewer mistakes.

Since decisions are so common, messy decision processes create plenty of room for errors and misunderstandings. I already mentioned better decisions, so let’s talk about misunderstandings and the many mistakes the originate in misunderstandings. Messy decision processes rarely have crystal clear endings, especially because messy processes often lead to re-decision the next day. The messier a process, the easier it is for someone to walk out of the room with the wrong message.

12. Introverts can stop waiting for Godot!

Introverts are notorious for waiting for the right moment to interject their comments. I know because I am one. Since talking isn’t an introvert’s default behavior, they only talk when they have a purpose and something to say. And if their purpose doesn’t match the conversation, they don’t talk. So they wait for the right time. And in a wandering conversation, the right time never comes. It may come close, they get ready to speak, and then someone takes the conversation in a new direction and they are left waiting for Godot, whom you know never shows, if you’re familiar with the play.

Finally, consider that many decisions provide no obvious winning alternative. In many cases, some alternatives are so similar or surrounded by so many unknowns that logic will not provide a definitive choice. In those cases, you may as flip a coin. While making the absolute best decision is often important, how you leave people feeling is always important. Decisions made with clarity produce the best results across the board.

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