decisions

Decision is the cognitive process of selecting a course of action from among alternatives. Decisions are made by individuals and groups in everyday life and across organizations and governments. They can be categorized by scope (strategic, tactical, operational), by participants (personal, professional, collective), and by programming (programmed/repetitive decisions) versus non-programmed (novel) decisions.

Common decision-making steps include identifying the problem or opportunity, gathering relevant information, generating a range of alternatives, assessing the options against objectives, risks and costs, choosing a course of action, implementing the decision, and monitoring outcomes and adjusting as needed.

Models and factors shape how decisions are made. The rational choice model assumes systematic evaluation of options, while bounded rationality recognizes cognitive and practical limits. Intuitive or affective decisions rely on experience and gut feeling. Information quality, time pressure, risk and uncertainty, values and preferences, and organizational constraints influence outcomes.

Tools and techniques used in decision making include decision matrices, cost-benefit analysis, risk assessment, decision trees, SWOT analysis, and stakeholder analysis. In group contexts, methods such as brainstorming, nominal group technique, the Delphi method, and consensus-building can be employed to generate and evaluate options.

Common cognitive biases can affect decisions, including confirmation bias, anchoring, availability heuristic, overconfidence, sunk cost, and loss aversion. Decision quality depends on clear objectives, relevant information, reasonable alternatives, transparent criteria, and participation. Ethical considerations and accountability are integral, especially in public policy and organizational governance.

Effective decision-making can improve efficiency, legitimacy, and outcomes, while poor decisions can lead to negative consequences and loss of trust.