Decision

Decision is the cognitive process of selecting a course of action from among multiple alternatives, with the aim of achieving a desired outcome. The word derives from the Latin decidere, meaning "to cut off," reflecting the act of choosing by eliminating options. Decisions occur in daily life, business, government, and other organizations and involve judgments about preferences, risks, uncertainties, and values.

A typical decision-making process comprises several stages: identifying a problem or goal; gathering relevant information; generating a set of alternative actions; evaluating potential consequences; selecting one option; implementing the chosen course of action; and reviewing the outcome to inform future decisions. The process can be linear or iterative and is influenced by time constraints, cognitive resources, and organizational structures.

Theoretical approaches to decision making include rational choice theory, which assumes stable preferences and maximization of value; bounded rationality, which recognizes cognitive limits and may lead to satisficing; and prospect theory, which emphasizes how people assess risk under uncertainty. Decision analysis tools such as decision trees, cost-benefit analysis, and multicriteria decision analysis aid structured evaluation. People often rely on heuristics—rules of thumb—that can speed judgment but also introduce biases like anchoring, availability, confirmation bias, and overconfidence.

Decision types vary by context: programmed decisions cover routine, repetitive choices; non-programmed decisions address novel or complex problems. In organizations, decisions can be strategic, tactical, or operational, and may be made by individuals or groups. Information systems and decision support tools help collect data, model options, and simulate outcomes.

Decision quality depends on the quality and relevance of information, clarity of objectives, analytical methods, and ethical considerations. Uncertainty, risk, time pressure, and social dynamics can affect outcomes, making careful evaluation and monitoring important for learning and accountability.