• What is decision making?
• Decision-making process
• Decision making types
• Decision-making characteristics
• Components of decision making
• Decision making in a company
• Importance of decision making
• What makes the decision-making process difficult?

We explain what decision-making is and what the steps in this process are. Also, characteristics and importance.

Decision making seeks to resolve conflicts that arise.

What is decision making?

Decision-making is a process that people go through. persons when they have to choose between different options. Every individual is faced with situations on a daily basis in which they must choose something, and that decision is not always simple. The process of decision-making is activated when they are presented conflicts in various areas of life to which you have to find the best possible solution.

In the field ofconduct and the human psyche this is a fundamental issue, since people do not respond in the same way to a problematic situation due to various elements such as structure from personality, development, maturity and the stage of the life where you are.

See also:Critical thinking

Decision-making process

When facing a situation to be resolved, it is important that the individual follow certain steps:

• Define thetrouble. Analysis of the situation you are facing.
• Detect the possible alternatives. Definition and recognition of the combinations of actions that can be taken.
• Anticipate the results. Association and detection of the possible consequences of each of the alternatives and study of the context in which the decision is carried out.
• Choose an alternative. Choice of any of the options.
• Control. Monitor the results of the chosen option, you must be responsible and have a attitude participatory in the process.
• Evaluation. Analysis of the advantages and disadvantages of the decision made, this step is essential for the learning and future decision making.

Decision making types

The decision-making process occurs periodically and constantly in an individual's life. Many times it responds to conflicts that arise on a daily basis and others are occasional; some occur within the private sphere and others within Business or organizations.

According to the different characteristics, the decision-making process can be:

• Rational. Process in which possible alternatives are analyzed using reasoning based on verifiable sources and evidence.
• Intuitive. Process in which the individual takes into account the intuition and the experience staff to turn to one of the alternatives.
• Personal. Decision-making process of an individual within the private sphere.
• Routine. Process that an individual or group performs periodically, they are usually situations that do not withstand much analysis or deal with complex issues.
• Of emergency. Process that an individual or group goes through to make a decision in the face of a new and exceptional situation.
• From group. Process that is carried out jointly between the members of a group in which consensus prevails and the alternative that generates the most adherence is taken.
• Individual. Process that a person executes autonomously within a context such as an organization or company.
• Organizational. Process carried out by one or more individuals who are members of an organization to make a decision that affects the future of the institution.

Decision-making characteristics

• Clarity. Refers to the importance of being clear about the objective to be achieved in the process and the situation to be solved.
• Impact. It refers to the consequences that each of the alternatives to choose can bring. It is important to bear in mind that all the options will have consequences, so the alternative that generates the most favorable impact must be chosen.
• Periodicity. It refers to the regularity with which individuals or groups make decisions, there are some decisions that are daily, and others that occur every a certain period of time that can be random or determined.
• Actors. It refers to the individuals who are part of the decision-making process, which can be taken individually or in groups according to each case.
• Reversibility. It refers to whether or not it is possible to go back in the choice of an alternative. The more irreversible the consequences of any of the alternatives to choose, the more attention should be paid to the decision process.

Components of decision making

Preference is the tendency to take one alternative and not another.

To solve a problem certain elements are needed that are important to find an initial result, to learn and improve problem solving and to detect one's own tools (competencies).

• Decision. Possible combinations that include both the actions to be carried out and the situations.
• Result. Hypothetical situations that would take place if one or another of the aforementioned decisions is made.
• Consequence. Assessment based on subjectivity.
• Uncertainty. Confidence in the face of the unknown, especially when you do not have experience in a particular problem.
• Preferences. Tendency to take one alternative and not another is conditioned by experience.
• Decision making. Deciding action.
• Judgment. Evaluation.

Decision making in a company

Decision making is one of the key processes within the business environment and organizations. This is because the consequences of decisions can have a direct impact on the structure or profits of a company.

The most important decisions are usually in the hands of the top management, which chooses an alternative based on the information available, knowledge in the matter and personal or company experience.

The competence and market demands lead to continuous innovation of companies, who must make strategic decisions that improve their reputation. Decisions must be effective and agile, and must reduce the margin of error as much as possible, since a decision made at the wrong time or making a bad analysis of the context can have irreversible consequences for the company.

The study of the context is key in the decision-making process, the same decision may or may not be timely according to each specific case. That is why it is important not to rely only on intuition and past experiences, but to know and learn about the impact that the decision has on the current state of the company and the market.

Importance of decision making

Making decisions is one of the most important processes in the life of a human being, since it is through the choices made that the individual is marking their personal and professional path. For this, it is advisable to define clear objectives on which to base daily decisions and recognize what is the most effective way to carry out the decision-making process.

As there are different ways of dealing with this process, which in some cases can lead to blockage or indecision, they were elaboratedtechniques and tools that help individuals develop and empower decision-making. One must work on the fear of error, tolerance for frustration and uncertainty, and on the recognition of the desire to achieve the personal or professional goals proposed.

What makes the decision-making process difficult?

There are individual or group characteristics that hinder decision-making processes, among the most significant are:

• Cognitive dissonance. It occurs when what you want to do and what you do do not coincide.
• Halo effect. It occurs when the shadow of other experiences causes it to be wrongly deduced, assuming and hastily anticipating a decision.
• Group thinking. It occurs when a group of people decides for others, despite the latter being in disagreement. There is no group consensus in decision-making, but fear, fear of being wrong, fear of rejection or group questioning.
• Hedonistic adaptation. It occurs when the individual is immersed in a state of well-being and pleasure that does not allow him to properly relate to the conflict.
• Confirmation bias. It happens when you don't have enough flexibility cognitive as to modify some beliefs when necessary. This causes the same mistakes to be made by continuing to maintain the same position on a topic by rejecting new content.
• Authority bias. It occurs when you blindly follow what experts propose, without taking into account your own wishes.