What is decision making?
Decision making is choosing one action from two or more choices. You do it many times a day. Small decisions are quick, like what to eat. Big decisions need care, like which subjects to study.
A rational decision is one made with clear reasons. You collect facts, compare options fairly and pick the one that best meets your goal. People are not always rational: tiredness, feelings, habits and peer pressure can push us to choose badly.
The steps of a good decision
- Spot the problem or goal. Say clearly what you want to achieve.
- Find options. List many ideas first (divergent thinking).
- Set criteria. Decide what a good choice must do: cost, quality, time, safety.
- Weigh and compare. Give each criterion a weight and score each option. Narrowing many ideas down to one is called convergent selection.
- Choose and act. Make a plan and do it.
- Review. Check the result. Was it good? What would you change?
A tentative decision is a first choice you are ready to change when you learn more. It is useful for big, long decisions like a career path.
The decision matrix (weighted scoring)
A decision matrix is a table. Options go in rows, criteria go in columns. Each cell has a score (for example 1 to 5). Multiply each score by the weight of its criterion and add across the row. The highest total is the best fit.
Example: Option B scores Cost 2, Quality 5, Time 3. With weights 1, 2, 1 the total is 2×1 + 5×2 + 3×1 = 15.
Try it: pick three snacks at home. Score each from 1 to 5 for taste, health and price. Give health a weight of 2. Which snack wins?
The matrix is a helper, not a judge. If the winner feels wrong, check your scores and weights again.
Decisions in management and careers
Types of decisions in an organisation
- Programmed (routine): repeated, with a set rule, like re-ordering stock when it runs low.
- Non-programmed (new): one-off and complex, like opening a shop in a new city.
- Strategic (long-term, top managers), tactical (medium-term, middle managers) and operational (day-to-day, supervisors).
Certainty, risk and uncertainty
Under certainty you know the results. Under risk you can estimate the chances. Under uncertainty you cannot even guess the chances well. Managers use data, costs and benefits, and staff ideas to decide, and they think about ethics and the people affected.
Career decisions
Use the same steps: know yourself (interests, strengths, values), explore options (jobs, courses), set criteria, make a tentative choice, try it out (internship, short course) and review.
Key formulas and definitions
- Weighted score = sum of (score × weight)
- Steps: Problem → Options → Criteria → Weigh → Choose → Review
- Programmed = routine; Non-programmed = new and complex
- Strategic → Tactical → Operational (long-term to day-to-day)
Worked examples
1. Riya must choose a club: Art, Robotics or Sport. Criteria: fun (weight 2), time needed (weight 1). Scores: Art 4, 3; Robotics 5, 2; Sport 3, 5. Which club wins?
Art = 4×2 + 3×1 = 11. Robotics = 5×2 + 2×1 = 12. Sport = 3×2 + 5×1 = 11. Robotics wins with 12.
2. A shop re-orders rice every time the stock drops below 20 bags. What type of decision is this?
A programmed (routine) decision: it repeats and follows a fixed rule.
3. A company in Pune must decide whether to start selling in Kenya. Classify the decision and name one risk.
It is a non-programmed, strategic decision made by top managers. One risk: customers there may not want the product, so sales could be low.
Common mistakes
- Choosing before listing all the options.
- Giving every criterion the same weight when some clearly matter more.
- Adding scores without multiplying by the weights.
- Never reviewing the result, so the same mistake happens again.