decision making skills and techniques

8/7/2019 Decision Making Skills and Techniques

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Decision making skills and techniques

We use our decision making skills to solve problems by selecting one course of action from

several possible alternatives. Decision making skills are also a key component of time

management skills.

Decision making can be hard. Almost any decision involves some conflicts or dissatisfaction.

The difficult part is to pick one solution where the positive outcome can outweigh possiblelosses. Avoiding decisions often seems easier. Yet, making your own decisions and accepting

the consequences is the only way to stay in control of your time, your success, and your life.If you want to learn more on how to make a decision, here are some decision making tips to

get you started.

A significant part of decision making skills is in knowing and practicing good decision

making techniques. One of the most practical decision making techniques can be summarized

in those simple decision making steps:

1. Identify the purpose of your decision. What is exactly the problem to be solved?Why it should be solved?2. Gather information. What factors does the problem involve?3. Identify the principles to judge the alternatives. What standards and judgement

criteria should the solution meet?

4. Brainstorm and list different possible choices. Generate ideas for possiblesolutions. See more on extending your options for your decisions on my

brainstorming tips page.

5. Evaluate each choice in terms of its consequences. Use your standards andjudgement criteria to determine the cons and pros of each alternative.

6. Determine the best alternative. This is much easier after you go through the abovepreparation steps.

7. Put the decision into action. Transform your decision into specific plan of actionsteps. Execute your plan.

8. Evaluate the outcome of your decision and action steps. What lessons can belearnt? This is an important step for further development of your decision making

skills and judgement.

Final remark. In everyday life we often have to make decisions fast, without enough time to

systematically go through the above action and thinking steps. In such situations the mosteffective decision making strategy is to keep an eye on your goals and then let your intuition

suggest you the right choice.

Decision making

From Wikipedia, the free encyclopedia

Jump to: navigation, search

For Decision making in groups, see Group decision making.


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Sampleflowc

art represe

ting thedecision process to add a new article to Wikipedia.

Deci i i can be regarded as t e mental processes (cogniti e process) resulting in t eselection of a course of action among several alternatives. Every decision making process

produces a finalchoice.[1]

The output can be an action or an opinion of choice.

Contents

[hide]

y 1 Overviewy 2 Problem Analysisvs. Decision Makingy 3 Everyday techniquesy 4 Decision-Making Stagesy 5 Decision-Making Stepsy 6 Cognitive and personal biasesy 7 Post decision analysisy 8 Cognitivestyles

o 8.1 Influence of Briggs Myers typeo 8.2 Optimizing vs. satisficingo 8.3 Combinatoral vs. positional

y 9 Neuroscience perspectivey 10 See alsoy

11 Referencesy 12Further readingy 13 External links

[edit] Overview


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Human performance in decision making terms has been the subject of active research fromseveral perspectives. From a psychological perspective, it is nrecessary to examine individual

decisions in the context of a set of needs, preferences an individual has and values they seek.From a cognitive perspective, the decision making process must be regarded as a continuous

process integrated in the interaction with the environment. From a normative perspective, the

analysis of individual decisions is concerned with the logic of decision making and rationality

and the invariant choice it leads to.[2]

Yet, at another level, it might be regarded as a problem solving activity which is terminated

when a satisfactory solution is found. Therefore, decision making is a reasoning or emotional

process which can be rational orirrational, can be based on explicit assumptions ortacit

assumptions.

Logical decision making is an important part of all science-based professions, where

specialists apply theirknowledge in a given area to making informed decisions. For example,

medical decision making often involves making a diagnosis and selecting an appropriate

treatment. Some research using naturalistic methods shows, however, that in situations with

higher time pressure, higher stakes, or increased ambiguities, experts use intuitive decision

making rather than structured approaches, following a recognition primed decision approachto fit a set of indicators into the expert's experience and immediately arrive at a satisfactory

course of action without weighing alternatives. Recent robust decision efforts have formallyintegrated uncertainty into the decision making process. However, Decision Analysis,

recognized and included uncertainties with a structured and rationally justifiable method ofdecision making since its conception in 1964.

A major part of decision making involves the analysis of a finite set of alternatives described

in terms of some evaluative criteria. These criteria may be benefit or cost in nature. Then the

problem might be to rank these alternatives in terms of how attractive they are to the decision

maker(s) when all the criteria are considered simultaneously. Another goal might be to just

find the best alternative or to determine the relative total priority of each alternative (forinstance, if alternatives represent projects competing for funds) when all the criteria are

considered simultaneously. Solving such problems is the focus ofmulti-criteria decisionanalysis (MCDA) also known as multi-criteria decision making (MCDM). This area of

decision making, although it is very old and has attracted the interest of many researchers andpractitioners, is still highly debated as there are many MCDA / MCDM methods which may

yield very different results when they are applied on exactly the same data.[3]

This leads tothe formulation of a decision making paradox.

[edit] Problem Analysis vs. Decision Making

It's important to differentiate between problem analysis and decision making. The concepts

are completely separate from one another. Problem analysis must be done first, then theinformation gathered in that process may be used towards decision making.

[4]

Problem Analysis Analyze performance, what should the results be against what they actually are

Problems are merely deviations from performance standards

Problem must be precisely identified and described

Problems are caused by some change from a distinctive feature

Something can always be used to distinguish between what has and hasn't been effected by


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a cause Causes to problems can be deducted from relevant changes found in analyzing the problem

Most likely cause to a problem is the one that exactly explains all the facts

Decision Making Objectives must first be established

Objectives must be classified and placed in order of importance Alternative actions must be developed

The alternative must be evaluated against all the objectives

The alternative that is able to achieve all the objectives is the tentative decision

The tentative decision is evaluated for more possible consequences

The decisive actions are taken, and additional actions are taken to prevent any adverse

consequences from becoming problems and starting both systems (problem analysis and

decision making) all over again

[edit] Everyday techniques

Some of the decision making techniques people use in everyday life include:

y Pros and Cons: Listing the advantages and disadvantages of each option, popularized byPlato and Benjamin Franklin

y Simple Prioritization: Choosing the alternative with the highest probability-weighted utilityfor each alternative (see Decision Analysis) or derivative Possibilianism: Acting on choices so

as not to preclude alternative understandings of equal probability, including active

exploration of novel possibilities and emphasis on the necessity of holding multiple positions

at once if there is no available data to privilege one over the others.

y Satisficing: Accepting the first option that seems like it might achieve the desired resulty Acquiesce to a person in authority or an "expert",just following ordersy Flipism: Flipping a coin, cutting a deck of playing cards, and other random or coincidence

methodsy Prayer, tarot cards, astrology, augurs, revelation, or other forms ofdivination

[edit] Decision-Making Stages

Developed by B. Aubrey Fisher, there are four stages that should be involved in all groupdecision making. These stages, or sometimes called phases, is important for the decision-

making process to begin

Orientation stage- This phase is where members meet for the first time and start to get to

know each other.

Conflict stage- Once group members become familiar with each other, disputes, little fightsand arguments occur. Group members eventually work it out.

Emergence stage- The group begins to clear up ambigiuity in opinions is talked about.

Reinforcement stage- Members finally make a decision, while justifying themselves that it

was the right decision.


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[edit] Decision-Making Steps

When in an organization and faced with a difficult decision, there are several steps one can

take to ensure the best possible solutions will be decided. These steps are put into seven

effective ways to go about this decision making process (McMahon 2007).

The first step- Outline your goal and outcome. This will enable decision makers to see

exactly what they are trying to accomplish and keep them on a specific path.

The second step- Gather data. This will help decision makers have actual evidence to helpthem come up with a solution.

The third step-Brainstorm to develop alternatives. Coming up with more than one solution

ables you to see which one can actually work.

The fourth step-List pros and cons of each alternative. With the list of pros and cons, you

can eliminate the solutions that have more cons than pros, making your decision easier.

The fifth step - Make the decision. Once you analyze each solution, you should pick the onethat has many pros, and the one that everyone agrees with.

The sixth step-Immediately take action. Once the decision is picked, you should implement it

right away.

The seventh step - Learn from, and reflect on the decision making. This step allows you to

see what you did right and wrong when coming up, and putting the decision to use.

[edit] Cognitive and personal biases

Biases can creep into our decision making processes. Many different people have made a

decision about the same question (e.g. "Should I have a doctor look at this troubling breast

cancer symptom I've discovered?" "Why did I ignore the evidence that the project was going

over budget?") and then craft potential cognitive interventions aimed at improving decision

making outcomes.

Below is a list of some of the more commonly debated cognitive biases.

y Selective search for evidence (a.k.a. Confirmation bias in psychology) (Scott Plous, 1993) We tend to be willing to gather facts that support certain conclusions but disregard other

facts that support different conclusions. Individuals who are highly defensive in this manner

show significantly greater left prefrontal cortex activity as measured by EEG than do lessdefensive individuals.

[5]

y Premature termination of search for evidence We tend to accept the first alternative thatlooks like it might work.

y Inertia Unwillingness to change thought patterns that we have used in the past in the faceof new circumstances.

y Selective perception We actively screen-out information that we do not think is important.(See prejudice.) In one demonstration of this effect, discounting of arguments with which


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one disagrees (by judging them as untrue or irrelevant) was decreased by selective

activation of right prefrontal cortex.[6]

y Wishful thinking or optimism bias We tend to want to see things in a positive light and thiscan distort our perception and thinking.

[7]

y Choice-supportive bias occurs when we distort our memories of chosen and rejected optionsto make the chosen options seem more attractive.

y Recency We tend to place more attention on more recent information and either ignoreorforget more distant information. (See semantic priming.) The opposite effect in the first setof data or other information is termed Primacy effect (Plous, 1993).

y Repetition bias A willingness to believe what we have been told most often and by thegreatest number of different sources.

y Anchoring and adjustment Decisions are unduly influenced by initial information thatshapes our view of subsequent information.

y Group think Peer pressure to conform to the opinions held by the group.y Source credibility bias We reject something if we have a bias against the person,

organization, or group to which the person belongs: We are inclined to accept a statement

by someone we like. (See prejudice.)

y Incremental decision making and escalating commitment We look at a decision as a smallstep in a process and this tends to perpetuate a series of similar decisions. This can becontrasted with zero-based decision making. (See slippery slope.)

y Attribution asymmetry We tend to attribute our success to our abilities and talents, but weattribute our failures to bad luck and external factors. We attribute other's success to good

luck, and their failures to their mistakes.

y Role fulfillment (Self Fulfilling Prophecy) We conform to the decision making expectationsthat others have of someone in our position.

y Underestimating uncertainty and the illusion of control We tend to underestimate futureuncertainty because we tend to believe we have more control over events than we really do.

We believe we have control to minimize potential problems in our decisions.

Reference class forecasting was developed to eliminate or reduce cognitive biases in decision

making.

[edit] Post decision analysis

Evaluation and analysis of past decisions is complementary to decision making; see also

mental accounting.

[edit] Cognitive styles

[edit] Influence of Briggs Myers type

According to behavioralist Isabel Briggs Myers, a person's decision making process dependsto a significant degree on their cognitive style.

[8]Myers developed a set of four bi-polar

dimensions, called the Myers-Briggs Type Indicator(MBTI). The terminal points on these

dimensions are: thinkingandfeeling; extroversion and introversion; judgmentand perception;

andsensingand intuition. She claimed that a person's decision making style correlates well

with how they score on these four dimensions. For example, someone who scored near the

thinking, extroversion, sensing, and judgment ends of the dimensions would tend to have a

logical, analytical, objective, critical, and empirical decision making style. However, some

psychologists say that the MBTI lacks reliability and validity and is poorly constructed.


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Other studies suggestthatthese national or cross-cultural differences exist across entiresocieties. For example, Maris Martinsons has found that American, Japanese and Chinese

business leaders each exhibit a distinctive national style of decision making.[9]

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Herbert Simon coined the phrase "bounded rationality"to express the idea that humandecision-making is limited by available information, available time, and the information-

processing ability ofthe mind. Simon also defined t o cognitive styles:maximize try to

make an optimal decision, whereas ati fi e simply try to find a solution thatis "good

enough". Maximi ers tend to take longer making decisions due to the need to maximi eperformance across all variables and make tradeoffs carefully;they also tend to more often

regrettheir decisions.[10]

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Styles and methods of decision making were elaborated by the founder ofPredispositioning

Theory, Aron Katsenelinboigen. In his analysis on styles and methods Katsenelinboigen

referred to the game of chess, saying that chess does disclose various methods of operation,notably the creation of predispositionmethods which may be applicable to other, more

complex systems.[11]

In his book Katsenelinboigen states that apart from the methods (reactive and selective) andsub-methods (randomi ation, predispositioning, programming), there are two major styles

positional and combinational. Both styles are utili ed in the game of chess. According toKatsenelinboigen, the two styles reflecttwo basic approaches to theuncertainty: deterministic

(combinational style) and indeterministic (positional style). Katsenelinboigens definition ofthe two styles are the following.

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The combinational style is characteri ed by

y a very narrow, clearly defined, primarily material goal, andy a program that links the initial position with the final outcome.

In defining the combinational style in chess, Katsenelinboigen writes:

The combinational style features a clearly formulated limited objective, namely the capture of

material (the main constituent element of a chess position). The objective is implemented via

a well defined and in some cases in a uni ue sequence of moves aimed at reachingthe set

goal. As a rule, this sequence leaves no options forthe opponent. Finding a combinational

objective allows the playerto focus all his energies on efficient execution, thatis, the playersanalysis may be limited to the pieces directly partakingin the combination. This approach is

the crux ofthe combination and the combinational style of play.[11]


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The positional style is distinguished by

y a positional goal andy a formation of semi-complete linkages between the initial step and final outcome.

Unlike the combinational player, the positional player is occupied, first and foremost, with

the elaboration of the position that will allow him to develop in the unknown future. Inplaying the positional style, the player must evaluate relational and material parameters as

independent variables. ( ) The positional style gives the player the opportunity to develop

a position until it becomes pregnant with a combination. However, the combination is not the

final goal of the positional playerit helps him to achieve the desirable, keeping in mind a

predisposition for the future development. The Pyrrhic victory is the best example of ones

inability to think positionally.[12]

The positional style serves to

a) create a predisposition to the future development of the position;

b) induce the environment in a certain way;

c) absorb an unexpected outcome in ones favor;d) avoid the negative aspects of unexpected outcomes.

The positional style gives the player the opportunity to develop a position until it becomes

pregnant with a combination. Katsenelinboigen writes:As the game progressed and defense became more sophisticated the combinational style of

play declined. . . . The positional style of chess does not eliminate the combinational one with

its attempt to see the entire program of action in advance. The positional style merely

prepares the transformation to a combination when the latter becomes feasible.[13]

[edit] Neuroscience perspective

The anterior cingulate cortex (ACC), orbitofrontal cortex (and the overlapping ventromedial

prefrontal cortex) are brain regions involved in decision making processes. A recent

neuroimaging study,[14]

found distinctive patterns of neural activation in these regions

depending on whether decisions were made on the basis of personal volition or following

directions from someone else. Patients with damage to the ventromedial prefrontal cortex

have difficulty making advantageous decisions[15].

A recent study[16]

involving Rhesus monkeys found that neurons in the parietal cortex not

only represent the formation of a decision but also signal the degree of certainty (or

"confidence") associated with the decision. Another recent study[17]

found that lesions to the

ACC in the macaque resulted in impaired decision making in the long run of reinforcement

guided tasks suggesting that the ACC may be involved in evaluating past reinforcementinformation and guiding future action.

Emotion appears to aid the decision making process: Decision making often occurs in the

face ofuncertainty about whether one's choices will lead to benefit or harm (see also Risk).

The somatic-marker hypothesis is a neurobiological theory of how decisions are made in the

face of uncertain outcome. This theory holds that such decisions are aided by emotions, in the

form of bodily states, that are elicited during the deliberation of future consequences and that


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mark different options for behavior as being advantageous or disadvantageous. This processinvolves an interplay between neural systems that elicit emotional/bodily states and neural

systems that map these emotional/bodily states.[18]

Although it is unclear whether the studies generalize to all processing, there is evidence that

volitional movements are initiated, not by the conscious decision making self, but by the

subconscious. See theNeuroscience of free will.

[edit]


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Definition Of

Decision Making

The standard definitions

If you search for the definition of decision making here are some samples of what you'll find:

y The cognitive process of reaching a decision.y A position or opinion or judgment reached after considerationy Choosing between alternative courses of action using cognitive processes- memory,

thinking, evaluation, etc

y The process of mapping the likely consequences of decisions, working out the importance ofindividual factors, and choosing the best course of action to take.

Other disciplines may have a slightly different definition of decision making, for example,games theory or computer programming have variations in their uses for the terminology.

And even if you compare models there are variations in each models definition.

So what's a decision?

If you look up the definition of a decision it's often referred to as

y the act of making up your mind about something, ory a position or opinion or judgment reached after consideration.

And when people ordinarily consider their own definition of decision making, it is typical

that they consider that somehow it is a thinking process, with lots of mental activity involved

in choosing between alternatives.

But this doesn't include the way some people make decisions. You may have heard people

saying

y I have a gut feelingy I know in my hearty I feel it in my bones

So how do we explain this?


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More practical definition

of decision making

I much prefer this particular definition of decision making:

The process of selecting from several choices products or ideas, and taking action.

Because I think when people make decisions, they actually use their whole system, not just

their thinking abilities. I also consider that the whole system approach is considerably more

effective than simply thinking it through.

Consider, for example, when somebody uses a phrase such as I knew at the time that Iprobably shouldn't have chosen this one, but I did it anyway. Usually what happens is that

their system is making one choice, and mentally they choose something else. There arebasically ignoring their ownbody wisdom. And later, of course, the bad decision comes back

to haunt them.

The way around this so that you make good decisions is obviously to learn your own signalsin your physical system so that you recognize them when they occur. And the most important

thing is to pay attention to the signals!

There are many approaches and they include the idea of

'sleeping on it, where someone delays making a decision until the following day. This can be very

useful in allowing somebody's whole system to align to one particular choice. But even if people

sleep on the decision they are still prone to overriding the body signals, because in our culture more

emphasis is put on the cognitive aspects of decision making.

The evidence for this lies not just in the defination of decision making (see above) but theemphasis in most of the decision making models is on the strategies for making the most

rational, logical and sensible choice.

You can read an overview of decision making here with a brief description of models, styles

and evaluating decisions.

For more free tips, tricks and ideas on improving your confidence in making decisons,

subscribe to my newsletter...

Types of Decision Making

Some decisions are made quickly while there are others that involve a lot of deliberation. Then there

are those that can't be altered as compared to those that can be revoked. Read on to know about

the different types of decision making...


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The poem Road Not Tak"n by Robert Frost that was published about a century back, highlights the

importance and the dilemma that human beings have faced while making decisions. Decision making

refers to the thought process that is involved while choosing the most logical choice from among the

options available. Be it deciding upon whether to look for a new cave for the next winters or signing

the contract with new business partners, intelligent decisions have been instrumental in the survival

and prosperity of human beings. Making the right decision according to the complexity of the

situation is what sets an average individual separate from the rest. Although, the ability of making

the correct decision within a short span of time is a highly valued trait, one cannot follow a set

pattern of deciding on a course of action at all points of time. Hence, there are different types of

decision making that we all resort to depending upon the situation at hand.

Different T#

pes ofDecision Making

The following are the most common types of decision making styles that a manager in a business or

even a common man might have to follow.

Irreversible: These decisions are permanent. Once taken, they can't be undone. The effects of these

decisions can be felt for a long time to come. Such decisions are taken when there is no other

option.

Reversible:Reversible decisions are not final and binding. In fact, they can be changed entirely at

any point of time. It allows one to acknowledge mistakes and fresh decisions can be taken

depending upon the new circumstances.

Dela#

ed:Such decisions are put on hold until the decision maker thinks that the right time has

come. The wait might make one miss the right opportunity that can cause some loss, specially in the

case of businesses. However, such decisions give one enough time to collect all information required

and to organize all the factors in the correct way.


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Quick Decisions: These decisions enable one to make maximum of the opportunity available at

hand. However, only a good decision maker can take decisions that are instantaneous as well as

correct. In order to be able to take the right decision within a short span of time, one should also

take the long-term results into consideration.

Experimental: One of the different types of decision making is the experimental type in which thefinal decision cannot be taken until the preliminary results appear and are positive. This approach is

used when one is sure of the final destination but is not convinced of the course to be taken.

Trial and Error: This approach involves trying out a certain course of action. If the result is positive it

is followed further, if not, then a fresh course is adopted. Such a trail and error method is continued

until the decision maker finally arrives at a course of action that convinces him of success. This

allows a manager to change and adjust his plans until the final commitment is made.

Conditional: Conditional decisions allow an individual to keep all his options open. He sticks to one

decision so long as the circumstances remain the same. Once the competitor makes a new move,

conditional decisions allow a person to take up a different course of action.

T$

pes ofDecision Making for Leaders

A leader gives direction to people to follow. He is responsible for ensuring that his decision provides

the right direction to the organization. Be it in a business or in other organizations, decision making

is an important component ofleadership skills. The different types of decision making that a leader

typically encounters are:

Authoritative: In authoritative type of decision making the leader is the sole decision maker which

subordinates follow. The leader has all the information and expertise required to make a quick

decision. It is important that the leader is a good decision maker as it is he who has to own up to the

consequences of his decision. Though effective, in case the leader is an experienced individual, it can

harm the organization if the leader insists on an authoritative type of decision making even when

there is expertise available within the team.

Facilitative: In facilitative type of decision making, both the leader and his subordinates work

together to arrive at a decision. The subordinates should have the expertise as well as access to the

information required to make decisions. Such an approach could be useful when the risk of wrong

decision is very low. It is also a great way of involving and encouraging subordinates in the working

of the organization.

Consultative: As the name suggests, consultative decisions are made in consultation with the

subordinates. However, the fact remains that unlike in the facilitative decision making style, in

consultative decision making it is the leader who holds the decision making power. A wise leader

tends to consult his subordinates when he thinks that they have valuable expertise on the situation

at hand.

Delegative: As per the term, the leader passes on the responsibility of making decisions to one or


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more of his subordinates. This type of decision making is usually adopted by the leader when he is

confident of the capabilities of his subordinates.

It would have been so good had there been a universal model for decision making. However, due to

the dynamic nature of conditions, be it our workplace or our personal lives, we have to resort to

different types of decision making.

Importance of Decision Making

What sets great managers apart from mediocre ones is their decision making ability. The importance

of decision making in management or any other field of human endeavorcan never be

underestimated. In this article I'll discuss the importance of decision making in personal and

professional life.

Life is full of choices at every moment of time. There are multitude of possibilities in front of you to

choose from. You need to choose one course of action from all available options based on your

judgment. That is what constitutes making a decision. If you think about it, life is a series of decisions

and consequences that follow them. Smart decisions are the triumphs of judgment while bad

decisions are opportunities to learn from and rectify our strategy. The importance ofdecision

making in life is immense as what we eventually become is a consequence of the decisions we made

in the past. We are what our choices and decisions make us to be. In the text that follows I'll identify

the importance of decision making skills in leadership, business, management and running an

organization.

Importance ofDecision Making in LeadershipLeadership is perhaps one of the toughest tasks ever because a leader makes decisions for all his

followers. The fate of all followers is entwined with the decisions that a leader makes for them. He is

the leader because of his higher level of understanding and experience. He must choose what is best

for all his followers and then his own self. The fact that they trust his judgment puts immense

responsibility on his shoulders. There are many types of decision making processes that one can

adopt.


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Who can know the importance of decision making, better than a leader? The leader's respect is

heightened when the decisions he makes are validated by the test of time to be the best ones under

the circumstances. He must consider all variables and possible paths to attain a collective objective

and choose the one with highest success rate. His ability to study and observe situations deeply

helps him in choosing the right path. He must trust his ability and soundness of reason when making

a decision. Becoming a leader of men is the ultimate test of character!

Importance ofDecision Making in Management

Management is not just about taking care of businesses or corporations. It is a broad concept

applied to every sphere that we are a part of, extending from the self and expanding through family,

community and ultimately society. It starts with personal management skills. All of management

boils down to two things which are creation of effective strategy and its execution. In short, it is all

about making decisions and seeing them through to their end through execution.

Every decision made by the management of a business affects employee morale and performance,

ultimately influencing the overall business performance. Management is all about getting things

done in the most efficient manner. Every management decision needs to be made while making

most judicious use of resources at disposal with economical use of the time factor. The importance

of decision making in management is immense as business policy and culture adopted, ultimately

affects a company's output and performance.

Importance ofDecision Making in Business

The fate of any business venture is decided by the decision making ability of the business leadership,

at the helm. They are the ones who captain and steer the ship to its destination. Profiting in a

business is all about making the most of a window of opportunity that appears in a market place.

Timing is of essence in business. Quick decisions on the spot, need to be made by business managers

to take advantage of opportunities when they present themselves.

You can't mull over decisions for too long. In today's world, one needs business managers who can

take snap decisions and execute the outlined strategy, despite obstacles. Sometimes, aloss or profit

for a business boils down to one deciding moment of judgment! That is what business is all about, a

combination of effective strategy executed with painstaking precision.

Importance ofDecision Making in an Organization

The decision making ability of the think tank of any organization, be it the local city council or United

Nations, decides how effective a role it will play in the world. Many organizations exist for the sake

of existing and despite phenomenal amount of resources available at their disposal, they hardly do

any work. That is because there is no will or decision making ability at the helm. An organizationwithout people, who can't make decisions and take them to their logical conclusion is doomed.

However, when there is a decision making will power, with tenacity to execute strategy, miracles can

happen despite limited resources. That's why, importance of decision making in any organization,

can never be overemphasized.

The way to get better at making smarter decisions is learning from experience and not repeating the

same mistakes again. No decision is perfect in the sense that no decision can guarantee a 100%


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success rate in attainment of objective. However, you must choose the best course of action that has

highest chance of success and is backed by logic and confidence in your own judgment. Decisions

may turn out to be good or bad but none of them are wasted. Bad or good ones, both add up to

what we call wisdom if they are analyzed in the aftermath. One often realizes the importance of

decision making only after making a couple of bad ones! Don't avoid making decisions on your own.

Every decision that you make for yourself is an opportunity to grow and learn. Don't miss it!

By Gray Pilgrim

Published: 8/5/2010

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