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In its simplest sense, decision-making is the act of choosing between two or more courses of action. In the wider process of problem-solving, decision-making involves choosing between possible solutions to a problem. Decisions can be made through either an intuitive or reasoned process, or a combination of the two.
In psychology, decision-making is regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities. Every decision-making process produces a final choice, which may or may not prompt action.
Decision theory · Robust decision-making · Category:Decision-making
The thought process of selecting a logical choice from the available options. When trying to make a good decision, a person must weight the positives and negatives of each option, and consider all the alternatives.
Entrepreneurs are natural born problem solvers.
To solve difficult problems, you need to make difficult decisions.
I will unpack five tips to help you improve your decision making process. And make a rational decision which is based on logic and practical thinking with a positive approach.
1. Don't delay
Simple decisions are fun. You can tick them off your to do list and feel like you’ve accomplished something along the way. When the stakes increase and you’re faced with making a critical business decision, don’t delay because it’s difficult.
Dedicate a focused block of time each day to work through the pros, cons, risks and realistic outcomes of your decision. Consider the second and third order effects of your decision during this session.
Sweeping problems under the rug will not help you make better decisions.
2. Shelve ego and emotion
Decision making can be difficult because you become too personally invested in how a decision will make you look and feel. Can you objectively solve the problem? Yes! List potential causes and put your emotion and ego on the back-burner.
Imagine your business isn’t generating enough revenue to hit your target. What is the specific cause of this?
You will make better decisions by focusing on the facts instead of personal deficiencies. If you need help with anything in your business, from marketing through to customer service, you have options.
Self-awareness is an entrepreneurial power play.
3. Ask an expert
The decision you're making has likely been made in the past. While the problems you're trying to solve are unique to you, it's highly probable that someone else has solved the same issue at a larger scale.
Luckily, entrepreneurs are very approachable and love to help each other. To get an expert help with your question, research the influencers in the area you need help with, then send three of them a quick note to ask for their help. Serve up the facts, your thoughts and the options you are considering.
A neutral third-party to help you make decisions will keep you objective.
Work from a proven playbook instead of trying to reinvent the wheel.
Chocolate or strawberry? Life or death? Continuity of service or retirement? We make so many quick decisions unconsciously; others we agonize over. We choose actions and form opinions and use our rational or logic to prove that our choice is appropriate based on the way we decide and which option. It will depend on time and people around us giving us feedback for the decisions we make. The more important a decision the more priority the level of approach and the time taken to solve the issue(s). Companies have panel or panels of advisors or managers within a given specialist area, a catalyst to make it possible for a proper logic in the decision taken and the votes for it or against it, hence the time factor plays an important part in rational decisions.
Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step methods.
We believe the time has come to broaden the traditional approach to leadership and decision making and form a new perspective based on complexity science.
Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach increases the chances that you will choose the most satisfying alternative possible.
Step 1: Identify the decision
You realize that you need to make a decision. Try to clearly define the nature of the decision you must make. This first step is very important.
Step 2: Gather relevant information
Collect some pertinent information before you make your decision: what information is needed, the best sources of information, and how to get it. This step involves both internal and external “work.” Some information is internal: you’ll seek it through a process of self-assessment. Other information is external: you’ll find it online, in books, from other people, and from other sources.
Step 3: Identify the alternatives
As you collect information, you will probably identify several possible paths of action, or alternatives. You can also use your imagination and additional information to construct new alternatives. In this step, you will list all possible and desirable alternatives.
Step 4: Weigh the evidence
Draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through the use of each alternative. As you go through this difficult internal process, you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching your goal. Finally, place the alternatives in a priority order, based upon your own value system.
Step 5: Choose among alternatives
Once you have weighed all the evidence, you are ready to select the alternative that seems to be best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may very likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4.
Step 6: Take action
You’re now ready to take some positive action by beginning to implement the alternative you chose in Step 5.
Step 7: Review your decision & its consequences
In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision. For example, you might want to gather more detailed or somewhat different information or explore additional alternatives.
In a short concise way of explanation: A decision is made because there is a immediate need to fulfil the cause or effect of a situation based on the facts presented and acting in a logical way to solve the problem causing it, with an alternative incase the first approach does not work the second is taken to back up your decision in a rational way (with the seven steps taken care of) and satisfying the people involved and person concerned.
Depends upon experience, circumstances and any past examples.
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Rationality of the decision is depending on the method for systematically selecting among possible choices that is based on reason and facts. In a rational decision making process, as the business manner is often employ a series of analytical steps to review relevant facts, observations and possible outcomes before choosing a particular course of action.
