Part 1 - Decision Making

Sharing my report on my subject MPA 604 - Policy Analysis and Decision Making.

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I.              INTRODUCTION

Decision making is an integral part of everyday life as choices are made on a daily basis between various competing alternatives by both individuals and organizations to achieve a desired goal. Hence, the idea that decision making can be a rather difficult art may at first seem strange. However, studies have shown that most people are much poorer at decision making than they think. An understanding of what decision making involves, together with various effective techniques of doing so, will thus help people in leadership positions in making better decisions.

Wikipedia.org defines decision making as “the process of identifying and choosing alternatives based on the values, preferences and beliefs of the decision-maker.” Decision making can be further regarded as a problem-solving activity terminated by a solution deemed to be optimal, or at least satisfactory. It is therefore a process which can be more or less rational or irrational and can be based on explicit or tacit knowledge and beliefs. In other words of Trewatha & Newport, “Decision-making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem.”

Making a decision therefore, implies that there are alternative choices to be considered, and in such a case we want not only to identify as many of these alternatives as possible but to choose the one that (1) has the highest probability of success or effectiveness and (2) best fits with our goals, desires, lifestyle, values, and so on. The two important ideas here are that first, there must be some genuine alternatives to choose from. Note that "Do it" or "Don't do it" does not qualify as a set of alternatives. Only "Do this" or "Do something else" really qualifies. Second, every decision must be made in the light of some standard of judgment. This standard usually gets expressed in the form of criteria, which reflect the values and preferences of the decision maker. These values and preferences are often influenced by certain factors, cooperate rules or culture, law, best practices, and so forth.

II.             BODY: DECISION MAKING

II.1. DEFINITION

Decision, from Cambrige dictionary, means something you choose; a choice from an available alternative; to come to a conclusion; to pass a resolution.

                     Decision making on the hand,

1.    According to James Stoner,

"Decision making is the process of identifying and selecting a course of action to solve a specific problem."

2.    According to Trewartha and Newport,

"Decision making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem."

3.    According to Phil Higson and Anthony Sturgess of the-happy-manager.com, their definition incorporates the four elements which can help all types of decision making, namely; process, options, choices, actions, which is,

“Decision making is the process of making a choice between a number of options and committing to a future course of actions.”

Considering each of the key parts of the definition in turn:

Process. Decision making is a process with several stages or a series of steps taken. These combine to produce effective outcomes.

Options. Any decision making process should ensure that sufficient options are generated to enable a decision. Making a decision without considering sufficient options is an easy mistake to make, so always try to generate as many quality options as possible. Without a good range of options, choice can become stifled. Without any options, there is no decision to make.

Choices. Choices can be difficult to make. In making a decision you’ll probably rely on numerous inputs, and you’ll certainly need to address a range of factors. Choices are typically made within constraints and is usually influence by organizational culture, environment, goals and objectives. Therefore clarity about goals or objectives is essential for making better choices.

Actions. The last element of the definition is perhaps the most important. A decision, even though well-made, is pointless without action. Decision making is about the future, about looking forward. Making a choice should take you forward – to action. To focus on how to select the most appropriate actions, at the least cost, and with the most advantages.

Actions have consequences, both intended and unintended. The consequences can be detrimental or favourable to your objectives. It’s therefore crucial to consider both the positive and negative effects which might result from your decisions. Putting a plan in place to eliminate or limit the adverse effects of the decisions made, and capitalize on favourable consequences is highly needed.

Visualizing a choice as though it were already happening and ask “what might the consequences be?” Committing to a course of action which is uncertain can be risky, so monitoring and adapting plans as you implement them is often the secret to success.

Next topic..

Part 2 - Types of Decisions

Related topic..
Part 3 - Conditions Affecting Decision Making
Part 4 - Steps Involved in Decision Making Process
Part 5 - Decision Making Models