What is decision-making?

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It is estimated that an adult makes 35,000 decisions a day (Sollisch, 2016), fortunately many are decisions that our brain makes automatically. But there are more challenging decisions that can be addressed with some real tactics, did you know?

Making choices is a very important process that determines the strategy and effectiveness of companies, whether solving a problem or seizing an opportunity.
Every complex decision involves the ability to make decisions such as evaluating and selecting different possibilities: it is a voluntary behaviour resulting from reasoning that involves a process. Numerous factors are considered: the level and situation, the nature of the choice, the skills required, the decision-making style that can be implemented and the procedures.
The four main procedural models that can help make good decisions are:
- rational
- bounded-rational decision-making
- intuitive decision-making
- creative decision-making

You will be asked to face the simulation of a business case and you will find the resources to use step by step: online resources to learn the analysis, the style and the necessary skills and the procedures that refer to the different models of the decision-making process.

How can I learn more ?

The decision making process is almost synonymous with the entire managerial management of a company.

There are different types of decisions that need to be made in the company and different techniques for dealing with them. By knowing them you will be able to select the most appropriate option for each situation.

1- Read the LabIT case study in documents

2- To complete this task, follow the steps:

watch the first video (5.39 min) "Decision Making, Types of Decision Making, Decision making Techniques"
read the article "Understanding the decision-making"

3- with this information you can evaluate and identify what type of decision you need to make for your company and also identify the method best suited to your situation. You can start with the traditional analytical method that you find explained in the second video.

4-download from the second link the template of Business Decision Making Checklist and fill it in.It is a tool that in 7 steps will help you make a rational and strategic choice; The decision-making process begins with identifying the objective, obtaining relevant and necessary information and evaluating alternatives to make a decision.

5- to compare the alternatives between companies and find the one that best satisfies some parameters that you have entered, it could be useful to use the second document "a Force Field Analysis Worksheet"

6- now that sufficient alternatives have been created, the group decision-making process can begin. Adopting collective decision-making, or collaborative decision-making, can bring many benefits to the company (you could do this with a group of real colleagues).

7- read at the third link Group Decision Making techniques you will find some decision analysis techniques. You might decide on a consensus decision-making technique, which is slower but strengthens team unity. Gather your team and discuss the problem and all your options. You might choose to present specific options or accept suggestions from your team. The key to this approach is that you only settle for a choice that everyone agrees on. The entire group will decide the course of action by improving inclusion and belonging to the company.

8- you have reached the final choice of the e-commerce company, thanks also to the support of the group. Every decision-making process involves assuming responsibility, taking a risk. Which style do you prefer? Watch the third video Decision Making Styles

9- do you know that the skills you brought into play during this decision-making process are multiple? Also referring to real situations you have faced, reflect and report on the self-assessment document "Self-assessment checklist of decision-making skills" which you can download.

Most managers' decision-making skills fall into four types of styles: directive, analytical, conceptual, behavioural, each with its specific strengths and weaknesses. Now that you have identified your position on the spectrum you have leadership that is more aware and stronger of its decision-making process.

Test yourself

What have you learnt?

Completed the analysis of a case study.
Used a checklist for decision making.
Compiled an evaluation matrix.
Evaluated the soft skills of decision making.
Name the stages of rational decision making.
Recognize different types of decisions: automatic, programmed and more intensive non-programmed.
Identify the difference between strategic-tactical and operational decisions in the company.
Distinguish the 4 main structured decision-making processes: rational, limited rationality, intuitive and creative.
Choose the decision making strategy best suited to the need.
Compare the data.
Organize a decision making process.
Critical thinking.
Availability for analytical reasoning.
Confidence in one's own analytical skills.
Promoting a culture of shared decision making and inclusion.
Awareness of the skills required in decision making and potential.

Conclusion

In the workplace, the different decisions you may make will have an impact. You must have the knowledge and foresight to ensure your decisions bring positive benefits to your team and your organization both now and in the future.

In the activity you went through a decision-making process, because you selected the best possible option in a given situation. You have used the checklist, the matrix and your team to arrive at an effective decision-making process because you have:

- Identified potential options.

-Tried to anticipate possible outcomes.

-Considered the needs or desires of others affected by the decision.

-Including the impact on a project, a department and the organization as a whole.

-Deliberate when under pressure.

You have seen that there are several decision-making methods to choose from. When choosing your approach, you should consider your familiarity with the problem, the number of people affected by the decision and the time period available for this choice, the business and cultural context, and your role. Some situations benefit from an analytical decision-making process that takes into account everyone's opinions, while other circumstances require a rapid approach that does not allow for negotiation.

Your style will lead you to favour one model but remember, there is no right decision-making style for all leaders. The best way to find out what works for you is to experiment with different styles and take note of the results and be open to feedback.

You will be able to select the most appropriate option for each situation or context, the process can be a combination, it's up to you.

We also recommend that you delve deeper into the Computational Thinking Module of the Rewind project platform.