Basics of Decision Making

Context in decision making refers to the problem or a situation that needs decision. It asks the question, what exactly is to be solved and who are the affected parties? It gives ways in which a problem should be solved. It tells whether the problem or the situation has a deadline or a particular time-line. The context however does not foretell the future events, for example a university may be faced with a situation that requires it to either perform a task or to completely outsource that particular task.

Objective in decision making refers to the outcome of the process. It gives what is relevant to the decision and what one needs to know before he or she can make a decision, plus who can help, who has the power and influence to make this decision. Therefore the person involved in decision making must understand what is expected by the affected parties. For example a manufacturing company must consider both quality and quality of the product to meet the demand of the customers. Objective in decision making must take care of the primary requirement for such a process.

Options refer to the various decisions that are favorable to the person or persons making the decision. All the decisions might be probable but only one must be taken. One should have principles of judging the alternatives. You need to compare each of the alternatives for their positives and negatives. What are the feasibility, acceptability and desirability of the option? Which alternative will best achieve your objectives? It gives the person making the decision the ability to compare the objectives against the final decision (Joachim, 2012)

Criteria are the final aspect of decision making. It involves the procedure or methods used to arrive at final decision. This could be done by Exploring the provisional preferred alternative for future possible adverse consequences, then consider what problems it might create and ponder over the risks of making this decision. This could be done either though a consensus agreement or though a statistical analysis. In a manufacturing company for example use the accounting methods to determine the most preferred option (Walter, 2010). Convert your decision into a plan or a sequence of activities. Execute your plan with the help of team members. The results of the decision making can then be evaluated. There must be enough resources allocated to implement the decision and it must be supported by colleagues.

In conclusion, the four components discussed above are important for the final decision to be favorable. None of the components is independent and therefore cannot stand alone (Walter, 2010).