We all make decisions or are involved in processes of decision making in our everyday life. These decisions range from basic to complex ones and resources are involved to make best decisions. While other decisions can be made logically and rationally, others are made less consciously depending on different courses of action (Ganegoda, 2008). Decision-making is described as the process where a reasonable course of action that commits the decision maker to the future is selected from various alternatives. This choice is based on the preferences and values of the decision maker and is realized after ensuring all sufficient options have been generated (Cowton & Drury, 2006). For this reason, decision-making is an inevitable process because every stage in life involves making choices from a range of alternatives. This paper limits itself to the discussion of 3 major types of decision making: consumer decision making, business decision making and personal decision making.
Consumer decision making
Consumer is known to take rational decisions in a market characterised by perfect competition. From a wide range of products or services, the consumer can rank the alternatives while considering the products or services advantages and disadvantages. He identifies his needs, collects information and then evaluates the information before making the purchase decision. In making this decision, the consumers take into consideration several factors. He considers the economic value that he will derive from the decision in comparison to the amount he is willing to part with in terms of money in making that decision plays a significant role. The psychological effect that accompanies the decision is also set in mind before endorsing the decision. Other considerations include environmental factors such as social values, cultural and group values.
Business decision making
A systematic and logical decision-making process helps the business address critical elements that lead to sound decision. This decision making process is done taking into consideration the financial and non-financial impacts and can be described in three levels. Most employees at the lower level of the organization participate in making operation decisions, which is on a regular basis. Putnam, 2007 postulates that managers, on the other hand, are involved in making tactical decisions while the board of directors or owners make strategic decisions, which aim at long-term operation of the business. The decision maker first explores all the alternatives before choosing the best alternatives (Ganegoda, 2008). He will then check the decision picked and communicate the decision and take action. Availability of finance and the existing business policies are some the internal challenges in this decision making while lack of appropriate technology and competition give external competition.
Personal decision-making
Decision-making and personal values are connected. This is decision made at a personal level and before making this decision, an individual has to know himself, and identify his values. To come up with a conscious decision, an individual categorizes the values in a hierarchical manner and identifies what should be done first. He evaluates the problem to be solved and of all possible choices, he has. Then he comes up with a list of choices he considers being intelligent and practical and evaluates them. The consequences of the choices are analysed and later on a reflection on the decision. In real life, personal decision-making is limited by several constraints. The main limitation is finances. Others include relationships, environment and things that the individual has no complete control (Michael, 2011).
Conclusion
In the process of decision making, it is evident that identification of the problem or the need forms a crucial foundation for decision making. From a consumer, business or personal point of view, it has been established that having a pool of alternatives guides the decision maker to select what will be considered the best choice to solve the need or problem at hand. Depending on the type of decision, it is also evident that the challenges faced in decision making vary as every type of decision made is surrounded by various challenges.
References
Cowton, J. C. & Drury, C. (2006). A note on the importance of product costs in decision-
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Ganegoda, B. D. (2008). Role of effect and interactional justice in moral leadership: Dhaka.
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Michael, S. C. (2011). Antecedents and consequences of cost information usage in decision-
making: Toronto. CanLit publishers.
Putnam, J. (2007). The law and economics of international intellectual poverty: A primer:
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