Decision Making At The Individual Level

Decision making at the individual level

Introduction

Decision making basically consists of choosing an option among the available, in order to solve a current or potential problem (even if a latent conflict is not evidenced).

Decision making at the individual level is characterized by the fact that a person makes use of their reasoning and thinking to choose a solution to a problem that is presented in life;That is, if a person has a problem, she must be able to solve it individually making decisions with that specific reason.

In some cases, making a decision consists of a process that is carried out implicitly and is solved very quickly. In others, making a decision implies a more structured process that can give more security and information to solve the problem.

In these cases, decision -making follows a structured process that begins with the need to make a decision, continues with the identification of options or alternatives and the determination of criteria that help to solve to select an option, continue with the analysis of the analysis ofThe alternatives to the light of the established criteria, and ends with the organization of alternatives and the selection of the best alternative.

Six steps to make scientific decisions

1. Identify the problem: to make a decision you have to be aware of the need to make a decision. This recognition is generated by the existence of a problem or disparity between a certain desired state and the real condition of the moment.

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2. Identify alternatives: It is important to consider the largest number of alternatives or possible options. For this it is necessary to make a detailed analysis of the possible solutions. Generating a high number of ideas we increase the possibility of finding a good alternative or option.
3. Establish criteria: making a decision requires the use of criteria or considerations that allow evaluating the quality of the decision according to relatively impartial patterns. A criterion is a standard or norm that is used to evaluate and judge an alternative or option.
4. Analyze the alternatives: It is important to take into account the degree to which they manage to respond to the established objective;consider the consequences of each of the identified alternatives, both in the short and long term;the real and possible costs;the available and necessary resources, etc.
5. Order the alternatives: it is a global analysis in which the alternatives are ordered depending on the degree to which the established criteria are satisfied. It is better alternatives that serve to meet the largest number of objectives, they have more favorable consequences, less costs in their implementation
6. Select the best alternative: the results achieved are established determining to what extent the decision made meets the objectives, the established criteria, the consequences and the costs;The efficiency and efficiency of the strategies used in decision making is judged.

Types of environment for decision making

1. Decision making with certainty: The consequence of each alternate/goes is known with certainty.
2. Decision making with uncertainty: There are several possible results for each alternative and the decision maker knows not the probabilities of the different results.
3. Decision making at risk: There are several possible results for each alternate/VA and the decision maker knows the probability of occurrence of each result.

Decision making under uncertainty

On occasions where probabilities cannot be assigned to possible events, when making a decision, it is called decision -making under uncertainty. It is based on the experience of the person who has to make the decision and presents when the future cannot be predicted based on past experiences (it is usually associated with many uncontrollable variables). In this type of decisions it is not known as the different variables of the problem can vary or interact so the different alternatives for the solution must be raised.

There are three criteria when assessing the results of a decision under conditions of uncertainty;

• Maximin criteria: also called Wald criteria, consists in choosing that strategy that maximizes the worst possible results. I would be associated with a pessimistic person and try to provide as much security level as possible.
• MAXIMAX CRITERIA: According to this criterion, we should opt for that strategy that maximizes the best possible results. It is also called optimistic criteria because it is the one who would use an optimistic person.
• Minimum frustration criteria: since most people are not extremely optimistic or pessimistic, this criterion establishes that strategies mustThis result.

Making decisions is always complicated, especially when not enough information is available to be able to take them with the greatest possible security. Therefore, before making any decision (and more in those important decisions in which you play the business) you must stop and analyze the alternatives. But be careful, remember that the worst decision is the one that is not taken.