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Decision Making: The Psychology of Choice

This document discusses decision making from a psychological perspective. It defines decision making as the cognitive process of selecting a course of action from various alternatives. Some key aspects discussed include the factors that influence decision making like goals, values, and risk; techniques for decision making like intuition, facts, and experience; common challenges like having too much/little information and misidentifying problems; and characteristics of the decision making process. The conclusion emphasizes using psychological insights to improve one's own and others' decision making abilities.

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153 views18 pages

Decision Making: The Psychology of Choice

This document discusses decision making from a psychological perspective. It defines decision making as the cognitive process of selecting a course of action from various alternatives. Some key aspects discussed include the factors that influence decision making like goals, values, and risk; techniques for decision making like intuition, facts, and experience; common challenges like having too much/little information and misidentifying problems; and characteristics of the decision making process. The conclusion emphasizes using psychological insights to improve one's own and others' decision making abilities.

Uploaded by

Brack osama
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Decision Making

The psychology of choice

Presented By
1.Rahul Gupta
2.Sohail Shaikh
3.Satyam Tiwari
Introduction
Decision Making
 The action or process of making important decisions. The
thought process of selecting a logical choice from the
available options.

 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.
DEFINITION
Decision & Decision Making

 A decision is a choice made between


two or more available alternatives.
Decision making is the process of
choosing the best alternative for
reaching objectives. (Samuel C. Certo,
2003)

 Decision making can be defined as a


process of choosing between
alternatives to achieve a goal. It is the
process by which an individual
chooses one alternative from several to
achieve a desired objective.
(Manmohan Prasad, 2003)
Making Effective
Decisions
Factors:

Perception. Goals.

Priority. Values.

Acceptability. Demands.

Risk. Style.

Resources. Judgement.
Six C's of Decision Making

1. Construct.
2. Compile.
3. Collect.
4. Compare.
5. Consider.
6. Commit.
Six C's of Decision Making

Construct a clear picture of precisely


what must be decided.

Compile a list of requirements that


must be met.

Collect information on alternatives


that meet the requirements.
Six C's of Decision Making

Compare alternatives that meet


the requirements.

Consider the "what might go


wrong" factor with each alternative.

Commit to a decision and follow


through with it.
Types of Decision
1. Basic Decision or Strategic
Decisions Types of Decisions

2. Administrative Decisions

3. Organisational or Personal
Decisions Types of Decisions

4. Policy of Decisions
Types of Decision

5.Individual & Group


Decisions Types of
Decisions

6. Routine Decisions

7. Adaptive Decisions
TECHNIQUES OR BASIS OF
DECISION MAKING
1.INTUTION:Decision making by intuition
is characterized by inner feeling of the
person. He takes a decision as per the
dictates of his conscious

2.FACTS :It is considered to be the best basis


of decisions making. Such decisions will be
sound and proper

3.Experience : Past experience of a person


becomes a good basis for taking decisions.
When a similar situation arises the manager
can rely on his past decisions and takes
similar decisions.
TECHNIQUES OR BASIS OF
DECISION MAKING
4.Operations research: It helps managers
by providing scientific basis for solving
organized problems involving interaction
of components of the organization.

5.Values : Being confused and unclear


about one‘s values may affect
decisionmaking ability. Overcoming a lack
of selfawareness through values
clarification decreases confusion.

6.Individual Preference : Overcoming this


area of vulnerability, involves
selfawareness, honesty and risk taking.
Characteristic of Decision
Making Process
• From various courses of action, it is a
process of choosing a particular course of
action.

• It is a human process which involves


the application intellectual abilities.

• It is a rational process which is


proceeded by deliberation and reasoning.
It may also be called as end process.
Characteristic of Decision Making Process
Characteristic of Decision
Making Process

• It is always related to situation in


which a manager may take one
decision in a particular set of
circumstances and another in a
different set of circumstances.

• This involves certain specific


purpose in which these may just be
decisions not to decide.
Common Challenges of
Decision Making
Having too much or not enough
information.
Gathering relevant information is key
when approaching the decision making
process, but it’s important to identify
how much background information is
truly required. “An overload of
information can leave you confused
and misguided, and prevents you from
following your intuition,” .
In addition, relying on one single source
of information can lead to bias and
misinformation, which can have
disastrous effects down the line.
Common Challenges of
Decision Making

Misidentifying the problem.


In many cases, the issues surrounding your
decision will be obvious. However, there
will be times when the decision is complex
and you aren’t sure where the main issue
lies. Conduct thorough research and speak
with internal experts who experience the
problem firsthand in order to mitigate this. It
will save you time and resources in the long
run, Corporate Wellness Magazine says.
Common Challenges of
Decision Making

Overconfidence in the outcome.


Even if you follow the steps of the decision
making process, there is still a chance that
the outcome won’t be exactly what you
had in mind. That’s why it’s so important
to identify a valid option that is plausible
and achievable. Being overconfident in an
unlikely outcome can lead to adverse
results.
Conclusion
We hope this course has set you thinking about how you
and others make decisions. It has been a very brief and to
some extent shallow introduction to some quite complex
ideas.
We have taken a brief excursion through different
perspectives on decision making and we have considered
how we think about risk from these different
perspectives. How can you use these ideas to improve
your own and others' decision making? The first way is to
use them to develop greater insight into the pressures
and influences that may be affecting how you process
information, think, and decide.

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