Discuss about the Techniques And Their Importance In Decision Making.
Decision making is a vital quality that is necessary in our day to day lives. Decision making in many case is done without regard for how it should be done. However, there are particular devices that are utilized in informing better decision making (Klein, 2008). In general, decision making is the process of identification of a choice. This choice is made based on information that is gathered and assessment of alternative options (Zsambok & Klein, 2014).
Effective decision-making can be achieved through following the steps that comprise the process. One must be able to define the nature of the decision he or she intends to make after recognition of the need to make that decision (Klein, 2008). The relevant information should be collected. This may be through internal assessment or use of external sources. This provides the needed knowledge to make an informed decision. This is followed by identification of the possible alternatives to the decision. A decision maker should weigh the evidence obtained and make the best choice out of the possibilities. After making the decision, it can be reviewed and the consequences assessed (Rardin & Rardin, 2016; Hastie & Dawes, 2010; UMass, 2018).
The following reflection discusses the models, tools and techniques and their importance in decision making. Different styles of decision making are also compared and contrasted. These styles use reason and logic in varying capacities with application of intuition and instinct (Zionts, 2012).
There are several decision-making models in use. These models mean that one has to choose which one to apply. The steps taken before and after a particular decision have the same significance as the decision. Persons can prepare for decision making through understanding all the aspects involved (Hwang & Masud, 2012).
The most common model is the rational model. This model type is used in achievement of optimal choice. It consists of various steps that decision makers take in seeking the best decision. The options available are considered based on judgement of the pros and cons presented. Use of this rational requires application of criteria in evaluation and assessment of the available choices. This model provides decision makers with platform to determine what matters most in the circumstance (Hastie & Dawes, 2010). The choice usually reflects the standards of the decision maker. In summary, the decision makers are faced with some alternatives for the course of action to take. The alternatives have different consequences which are known and quantifiable. The criteria provide the individual with system to rank the possibilities (Banning, 2008; Gati & Tal, 2008).
The system steps of the rational model entail identification and clarification of the problem and objectives. After determination of the criteria to base a decision, it is weighted and agreed upon. Generation of alternatives follows. They are evaluated so as to anticipate any consequences and a rational decision is thereafter made. The process is quite time consuming. It is, however, advantageous as it eliminates biasness in recognizing and addressing the problem. The model helps process every information available with anticipation of possible consequences. The model also ensures maximization of desired results (Baumann et al, 2014).
The administrative model assumes that decision makers are motivated in different ways or levels. This model is based on assumption that individuals are faced by demanding responsibilities therefore decisions are made on short notice. There is no optimization of choices but rather the first alternative that has shown value that is above level of acceptance is picked. The possible choices are examined one at a time till one that is acceptable is found. This model can lead to lower quality of decision but has benefits in saving effort and time. The method is preferable when the costs of delayed decisions is higher relative to the potential outcome that could be expected from a better decision. The model has particular assumptions that can direct the search for other alternatives with higher probability of success (Banning, 2008; Pettigrew, 2014).
On paper, this model is built on use of gut feeling in making decisions. Intuition is applied in many ways. It is first used in detection of the problem and investigate the matter. This model is mainly useful for persons with vast expertise, knowledge and experience (Gati & Tal, 2008). Intuition enables synthesis and augmentation of data and facts in gaining a clear picture of the issue. The intuition is also used in isolating alternatives and making a final decision. In many cases, the decision maker usually knows what to do but this are explained after the made decision for justification. The outcomes help in comprehending the problem further (Woiceshyn, 2011).
This model is based on descriptions that may be cues that help in recognition of patterns. Experience and expertise also play significant roles in this decision-making model. The decision maker uses contextual evaluation and his or her mental assessment to determine the solution. This model involves consideration of one option instead of several at a time. Identification of the problem is succeeded by establishment of traits of the problem. The next step is to assess the plan to determine its viability and modify it where need be. Alternatives can only be considered if the plan fails (Gati & Tal, 2008).
Making decision requires the application of models in the process. There are numerous tools and techniques that are used with the decision-making models in coming up with solutions. These tools and techniques can be used in combinations to bring about the most favorable outcome.
The decision matrix is utilized in the assessment of all alternatives. This entails the creation of a table with the alternatives and influential factors in a column and row respectively. This set up is used to score and more essential factors weighted. The best option is realized through tallying. This is an effective tool provides good decision making (Caramela, 2017).
Decision trees are models or graphs which entail scrutinizing all alternatives and outcomes. This technique includes statistical analyses. Decision trees help in choosing between multiple options. The tree diagram has a representation of different decisions to be made, the flow in structure and how they may relate to each other (Tzeng, & Huang, 2011).
The Delphi technique is used in the determination of the potential of an event and the outcomes. This method uses written feedback from questionnaires. The questions are based on each other. The decision is attained when consensus is reached according to the responses of individuals (Rowe & Wright, 2011).
Cost-benefit analysis is mainly used on financial grounds. All alternatives are examined in order to reach an economically reasonable decision. Other techniques include t-charts used in weighing the positives and negatives of an alternative. SWOT analysis helps in evaluation of strengths, weaknesses, opportunities, and threats. Conjoint analysis is used in relation to decisions involving consumer preferences (Chai, Liu & Ngai, 2013).
Making a career change is coming at a time when many variables and factors are in play. The decision on whether to make a different career move had been a long time coming. There are many reasons for these thoughts, but the most recent circumstance which has led to more urgency in the matter is the relocation of my family to another city miles away. In previous occasions I had considerations of switching jobs, there was no sense of hurry. I would say not having my family close to me as has always been the case brought the need to make a decision on my career.
The decision has been majorly influenced by internal factors. However, the conception of the decision has taken some planning. There are other factors that led to the development of the idea. The factors that were involved before family relocation came into the picture included remuneration, job satisfaction and specifications, other offers and the workplace environment. The impact of family moving catapulted this to prime reason. This introduced the pro-active stage of making the decision.
The main point of focus based on the causes of the circumstance is the connection with family. This seems like the cost that I may have to incur in case of lacking a good alternative. The direct effect is the implications of the job situation. In case there is no career change, I may lose a potentially great path to career progression. An opportunity to move to a better locale may also be lost. On the flipside, not making the decision will leave me in a situation that I’m familiar and relatively comfortable with. This means I wouldn’t have relocation expenditures (Zimmerman & Yahya-Zadeh, 2011).
In my case, the rational decision-making model provides the best chance to make a valid decision. The model enables me to consider the most significant factors that are influential in the situation. The issue of concern is already identified and established. Determining a procedure to guide the decision making is important. This provides the process that will determine the appropriate decision (Tzeng, & Huang, 2011).
The case has a number of alternatives. My final decision will be helped through the generation of all alternatives present and evaluation of their feasibility. Through use of the model, there is adequate regard for the consequences that the alternatives bring with them. Consideration of the anticipated outcomes is central to making the best-informed decision (Woiceshyn, 2011). After making this choice the only step left will be to implement the decision. I will evaluate my decision afterward.
This model is fitting in my decision making. The ample time invested in this role means that I get to develop clear objectives as concerns handling the problem at hand. The administrative model presents a disadvantage in application to this decision process. My decision should represent the best possible scenario which does not entail settling for the first promising alternative. The rational model is appropriate due to time factor when considering all the available alternatives. At the very least there is no biases involved in evaluating the problem. I appreciate the level of preparedness with this model based on all the evaluations involved.
Level of rationality is absolute in applying this model. All details are reasoned out to ensure the best outcome. Intuition does not factor much here. The administrative model is highly intuitive in the processing of options within a short while to determine a worthwhile decision. The recognition-primed model is also very intuitive and rational but the whole concept is not in line with my decision process. It is not useful in the circumstance.
Intuition is a very important factor in the decision-making process (Dane & Pratt, 2007). In previous situations involving significant decisions, I have trusted my gut feelings to nudge me in the right direction. Most of the times this has worked. It’s no different in this case. There are a number of alternatives with a varying presentation of desirable outcomes. The analysis of the alternative options and consequences gives appreciable insight and clear picture of the circumstance (Dane & Pratt, 2007). With all variables and possibilities available, reaching the decision is not so easy. Intuition tends to direct one on the best way to go. I trust that my intuition will help me make the best overall decision.
In further reflection on the role of intuition, I would like to point out that the intuitive decision-making model can be applied in the process, albeit partially. This model can be helpful in reaching the final decision. However, the shortcoming of the model is my lack of experience and expertise in dealing with careers and career change. I have not been in this situation before therefore there is a shortfall in the knowledge used to effectively apply the model.
My basis of using intuition will not be based on necessarily following the guidelines of the model but on my personal feeling towards what is right. An important point to note is that there is a high level of intuition in this case. The intuition is also associated with a solid application of logic and reasoning (Gigerenzer & Gaissmaier, 2011).
The decision process is aided by using a decision tree. This is a simple tool that will help me contemplate all options which can also be connected to the outcomes. This tool is vital as it helps in statistical analyses where necessary. Another tool that is applied in the decision process is the decision matrix. The listing of factors and giving scores is an efficient way of gauging the options that are available. The final tallying provides the outright frontline option (Nilsson & Dalkmann, 2010).
There are other decision-making tools and techniques applied to the decision process. Cost-benefit analysis is useful in aiding assessment of the economic implications I am facing with in consideration of alternatives I have. SWOT analysis is used to investigate the strengths, weaknesses, opportunities, and threats that are presented in my decision process. These tools and techniques are relevant and very vital in my decision process. They aid the process of gathering information and analyzing the options I’m presented with. These tools and techniques ate directly applicable and relevant to my issue (Yu, 2013).
An additional tool to use is the t-chart which can be used to display the negatives and positives of any decision to be made. Other tools such as conjoint analysis cannot be utilized in my decision process as it involves business decisions on consumer preferences which is irrelevant. The Delphi technique is also inapplicable. This method uses questionnaires in the decision-making process. My problem is more or less a personal matter therefore external input is not necessary (Nilsson & Dalkmann, 2010).
Human relationships are vital. As such, the relationship with my family is a determinant in this case. The relationship that I have built with colleagues in my current workplace also has some implications. These people have great character and relate to each other positively which can influence part of my decision. Past experiences have been nothing but a fulfillment of what I have always embodied. However, the ambitions I hold for my future are larger than the current situation can provide (Klein, 2008; Salvendy, 2012).
I have time and time observed incidences or choices that have led to major economic returns. There is a saying that implies that big risks lead to enormous wins (Mahmoud, 2015). This does not simply apply to all situations that present a conflict. In my case, I will not be so quick to settle on a very risky situation with hopes of an astounding outcome. However, behavioral economics is more than just that. There is the need for consistency and commitment in the decision-making. This is why there is the need for in-depth evaluation in the decision-making process to always allow informed decisions. Generalization is applicable to a certain level; the important thing is to know where to draw the line. The more inclusive aspect concerns the ethics involved. There is the need for the decision to be ethically acceptable for me and the society (Yager & Kacprzyk, 2012).
This situation presents some advantages. There is the probability of career development, possibly better than I may experience if I remain in my current situation. There is also a chance I could land a job in the same city as the locale my family has migrated to.
This decision-making process has some aspects that tend to derail or hinder the finding of a suitable outcome. In my case, part of the issue is lack of experience and expertise in the situation that includes making such decisions. I’m just starting to build a career thus such a move is not in my norm.
This experience has made me relate to some aspects I previously did not consider as vital. I recommend that people take keenness in the process of decision-making. The models provided help ensure that the best decisions are reached. I recommend that a system is developed whereby one can efficiently apply different models and techniques and still end up with the same conclusive outcome. This means that the methods that are available and those to be developed should be able to adequately give the desired outcomes. The techniques in decision-making should be usable in diverse situations and be utilizable in combination to ensure best possible outcomes. I also believe that more tools should be developed to ensure decision-making is more efficient with consideration of all factors relevant.
Conclusion
Decision-making is an integral part of life. Decisions are often made without consideration of all variables involved in the situation. However, decision-making requires the articulate approach to the determination of the final option. In my case, I have established that the rational model is the most preferable of the models available. Nonetheless, this needs to come within the appropriate setting. Given sufficient time, this a great way to determine an important decision.
This situation has helped me apply more features of decision-making process than initially thought to be adequate. In previous circumstances, my rational model did not include the establishment of any criteria. My process involved jumping right to the alternatives which I have determined to be somewhat deficient. I believe that multiple tools and techniques should be involved in decision-making. Unlike decision-making models, many different tools and techniques can be used in the decision-making process.
My decision-making skills and capabilities have been substantially enhanced through more detailed learning of the processes, procedures, methods, tools, and techniques. I believe that in this case and in the future to come, I’ll be in a majorly better position to make an informed decision.
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