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The 8 types of decisions

The 8 types of decisions

October 4, 2022

To live is to choose, It is a constant change . In our daily lives, we are all accustomed to having to make decisions about a myriad of issues that affect us.

From the most mundane decisions (what shirt will I wear today, what will I cook, what ingredients I want in my pizza ...) to those of great importance (what car I buy, what do I want to be in life ...), they all go through the sieve of our emotions and our rational thinking .

Make good decisions: the great key to success in life

Making good decisions is a true art and There are many factors that influence us when making a determination . In general, the manuals indicate that good decisions are those that are taken in a reflective and rational way, using a style of analytical thinking.

1. The rational decisions

For example, when buying a car, we would have to exhaustively compare the performance and prices of various models and brands, in order to reach certain conclusions about the suitability of each of the available options. They involve our analytical intelligence and it makes us weigh the pros and cons of the decision we are about to make.

2. Emotional and intuitive decisions

Although it is true that when we rigorously analyze all the aspects to be taken into account, it is more likely that we will reach better conclusions about which is the most suitable car, in fact not all the decisions can be made from this perspective. To a greater or lesser extent, all the decisions we make are influenced by a good dose of intuition, and mediated by our emotions .

Following the example of the car, and although we are able to perform a rational examination of the brands and models and our demands on the car we want to acquire, it is likely that we feel a certain (perhaps unconscious) preference for some brand or model above of others, and although rationally there are not enough reasons for this to be the case. This is explained by heuristic thinking, which is that human beings make decisions that are very influenced by our hidden motivations and desires. And this does not have to be negative! Maybe we will end up buying a car that from a purely rational perspective is not the most appropriate, but if we are happier with that decision ... who can conclude that we have done wrong?

In fact, the important point when we are considering whether to make a decision or another is, precisely, to bring up all our conscious and unconscious thoughts, from the most rational to the most intuitive and emotional, and find a satisfactory midpoint between both factors .

The other 6 types of decisions

The decisions we make, in addition to what has already been stated, can be classified according to different criteria . In the following six points I will describe the decisions from the organizational and corporate prism.

According to the forecast

If we take into account the level of structuring and forecasting with which we take them, we can talk about scheduled and unscheduled decisions.

3. Scheduled decision

These decisions are previously described and established by some type of regulation more or less formal, and its execution is based on a schedule. These are routine and strategic decisions that, in principle, are automatic and of immediate effect.

4. Unscheduled decision

They are not programmed or described in any normative text , and they happen as a result of the interaction of the corporation with the human and institutional environment. They tend to be spontaneous and tend to have a greater scope over time.

According to the urgency

considering the level of urgency with which the decisions have to be made:

5. Routine decisions

When the circumstances are similar and the context is also similar , companies are likely to look for ways to establish certain recurring mechanisms to make decisions.

6. Emergency decisions

When the situation is unexpected and there are no precedents , companies must take special measures to adapt to the development of events.

According to the importance for the company

Companies must function correctly in various areas: from daily routines to communication with other companies or institutions. In this sense, we can divide the decisions according to this factor.

7. Strategic

This type of decisions inquire about company objectives and try to convey these goals to specific development plans . Usually, these types of decisions are the ones that guide the corporations towards success or failure, since they mark the way forward. These are decisions that are usually made by the CEO, the manager and / or the shareholders.

8. Operational

They are decisions essential for the proper functioning of the organization and one of its missions is to resolve conflicts between people, both from a human and labor point of view. Its management must be careful since operational decisions also include determinations on hiring and firings.

Lecture 25: Different Types of Decisions and Events (October 2022).

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