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 that may or may not
prompt action. Decision-making is
the process of identifying and
choosing alternatives based on the
values and preferences of the
decision maker. ( From Wikipedia )
Human performance with regard to decisions has been
the subject of active research from several
perspectives:
•Psychological: examining individual decisions in the
context of a set of needs, preferences and values the
individual has or seeks.
•Cognitive: the decision-making process regarded as a
continuous process integrated in the interaction with
the environment.
Normative: the analysis of individual decisions
concerned with the logic of decision-making and
rationality and the invariant choice it leads to.
 Problem analysis & decision-making
1. Characteristics of problem analysis
2. Analyze performance, what should the results
be against what they actually are
3. Problems are merely deviations from
performance standards
4. Problems must be precisely identified and
described
5. Problems are caused by a change from a
distinctive feature
6. Something can always be used to distinguish
between what has and hasn't been affected by a
cause
7. Causes of problems can be deduced from
relevant changes found in analyzing the
problem
8. Most likely cause of a problem is the one that
Characteristics of decision-making

•Objectives must first be established

•Objectives must be classified and placed in order of importance
•Alternative actions must be developed
•The alternatives must be evaluated against all the objectives
•The alternative that is able to achieve all the objectives is the
tentative decision
•The tentative decision is evaluated for more possible
consequences
•The decisive actions are taken, and additional actions are taken
to prevent any adverse consequences from becoming problems
and starting both systems (problem analysis and decision-
making) all over again
•There are steps that are generally followed that result in a
decision model that can be used to determine an optimal
production plan[6]
•In a situation featuring conflict, role-playing may be helpful for
predicting decisions to be made by involved parties[7]
In the 1980s, psychologist Leon Mann and colleagues developed a
decision-making process was based on extensive earlier research
conducted with psychologist Irving Janis.[13] GOFER is an acronym
for five decision-making steps:

1.Goals: Survey values and objectives

2.Options: Consider a wide range of alternative actions.

3.Facts: Search for information.

4.Effects: Weigh the positive and negative consequences of the

options.

5.Review: Plan how to implement the options.

In 2007, Pam Brown of Singleton Hospital in
Swansea, Wales, divided the decision-making
process into seven steps:
1.Outline your goal and outcome.
2.Gather data.
3.Develop alternatives (i.e., brainstorming).
4.List pros and cons of each alternative.
5.Make the decision.
6.Immediately take action to implement it.
7.Learn from and reflect on the decision.
Stages of group decision-making
According to B. Aubrey Fisher, there are four stages or phases that should
be involved in all group decision-making:
•Orientation. Members meet for the first time and start to get to know
each other.
•Conflict. Once group members become familiar with each other,
disputes, little fights and arguments occur. Group members eventually
work it out.
•Emergence. The group begins to clear up vague opinions by talking
about them.
•Reinforcement. Members finally make a decision and provide
justification for it.
It is said that establishing critical norms in a group improves the quality
of decisions, while the majority of opinions (called consensus norms) do
not.
Steps of
Decision
Making
Process
Conclusion
When it comes to making decisions, one should
always weigh the positive and negative business
consequences and should favor the positive outcomes.
This avoids the possible losses to the organization
and keeps the company running with a sustained growth.
Sometimes, avoiding decision making seems easier;
especially, when you get into a lot of confrontation after
making the tough decision.
But, making the decisions and accepting its
consequences is the only way to stay in control of your
corporate life and time.