The process of decision making involves the selection of an option that is considered logical from the choice available. This will require the individual to weigh both the positive and negative of each option while at the same time considering all other alternatives. Good decision making strategies demand for one to be able to forecast a possible outcome of each option and determine which best fits the situation at hand.
There are several approaches that can be used in the decision making process. One is the problem-oriented approach (Simon, 1957, p.158). This approach requires that one starts by defining the problems, and use the available information to determine when and where the noted problem often occurs. Another approach is the vision led approach, here the leader of the group is supposed to have the vision of the organization in mind and through this help in the process of decision making. They will be expected to focus on new strategies and ways of improving the already in existent system to meet the desired vision.
A different approach is the plan led approach whereby the process of decision making is guided by the plan already set up (OECD, 2007, p.259). Objectives are determined and specified, and measures to fully execute the objectives are put in place and the resultant plan implemented. Another approach is the directive approach whereby the manager alone reviews all the facts, assesses the best way to solving the problem upon his own capabilities. He then considers how each employee will help in dealing with the situation without expecting their feedback. This approach is beneficial because of the speed factor as no discussion is involved, but it has a disadvantage that if the manager fails to notice a mistake then there is no one to point it out.
The other approach is the informing and involving approach whereby the manager involves the employees in the process of decision making. He listens to all suggestions and opinions but eventually the overall decisions falls on him. The last approach to decision making is the participation and engagement approach. Here the manager gets involved in the problem that needs to be solved. This advantageous over the other approaches as the manager is able to know which action best suits the problem, but it can lead to the manager being too involved to fail to see things objectively as is expected.
There are several social influences that affect the process of decision making. Past experience is one of the issues. Past experiences often affect reasoning. A good experience is bound to make one decide in a similar way and a bad experience would lead to one deviating from similar reasoning. Cognitive biasness is another social issue that can skew the process of decision making. Cognitive biasness includes factors like belief bias whereby one is over dependent on prior knowledge while making decisions.
Omission bias whereby people will tend to omit information they conceive to be risky, hindsight bias, here people will often explain an event as inevitable once it has occurred. Confirmation bias is another example in which people will observe what they expect in situations. Other social influences include age and individual differences (Lamb et.al, 2011, p.372), belief in personal relevance and an escalation of commitment. Each of these factors in way contribute to peoples view of situation which eventually determine the steps they take in the decision making process.
References
European Conference of Ministers of Transport (OECD). (2007). Managing Urban Traffic Congestion. OECD Publishing.
Lamb Charles W.et al. (2011). MKTG4: Student Edition. Mason, OH: South-Western Cengage Learning
Simon. H. A. (1957). Models of Man. N.Y: Wiley.
