Module 3:

Types of decision Making

Source: [Link]

Figure 5. Decision Making

Module Overview
Decision-making is choosing among alternative courses of action; There are different
types of decisions, ranging from automatic, programmed decisions to more intensive
nonprogrammed decisions. Structured decision-making processes include rational decision-
making, bounded rationality, intuitive, and creative decision-making. Each of these can be useful,
depending on the circumstances and the problem that needs to be solved.

Motivation Question
Why do you think that decision-making is important in our daily life? What is your biggest
decision in life that affects you and makes you who you are today?

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 Lesson 1.3:

Basic of Decision Making

Lesson Summary

Decision-making is the process of making choices by identifying a decision, gathering

information, and assessing alternative resolutions. Using a step-by-step decision-making process
can help you make more deliberate, thoughtful decisions by organizing relevant information and
defining alternatives.

Learning Outcomes
1. Understand what is the importance of decision making
2. Evaluate the different types of decision making; and
3. Know the uses of decision making

Motivation Question

As a future law enforcer, do you think that decision-making is important? Can it be used
or apply in your future profession?

Discussion

What Is Decision Making?

Making decisions between various courses of action—which can include inaction—is referred to
as decision making. While it is true that management involves making decisions, half of the
decisions made by managers in organizations fail. As a result, improving your decision-making
effectiveness is a key aspect of enhancing your productivity at work. This chapter will show you
how to make a maze.

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 • One of the most crucial factors in management is whether your actions as an employee
or manager are ethical. Here are some fundamental questions to ask yourself when
evaluating the ethical implications of a decision.
• Is this decision fair?
• Will I feel better or worse about myself after I make this decision?
• Does this decision break any organizational rules?
• Does this decision break any laws?
• How would I feel if this decision was broadcast on the news?

Type of Decision

Despite the far-reaching scope of the previous example's decisions, not all actions have
substantial implications or even necessitate much consideration example, you make easy and
regular decisions before class, such as what to wear, what to eat, and the route to take to and
from home and school.

You probably don't give these decisions a lot of thought. These simple decisions are referred to
as programmed decisions because they occur frequently enough to build an automated
response. The decision rule is the automated answer we employ to make these decisions.

Many restaurants, for example, deal with client complaints daily. Because this is a recurring issue
for eateries, it may be considered a predetermined decision. To address this issue, the restaurant
may adopt a policy that states that every time a genuine customer complaint is received, the
consumer should be given a free dessert, which is a decision rule.

In the P-O-L-C (planning-organizing-leading-controlling) model, strategic, tactical, and operational

decisions are part of the planning function.

This chapter will look at various decision-making models for analyzing and evaluating the
success of nonprogrammed decisions. We'll go over four different decision-making models,
starting with the rational decision-making model and progressing to the bounded rationality
decision-making model, intuitive decision-making model, and creative decision-making model.

Making Rational Decisions

The rational decision-making model outlines a sequence of processes that decision-makers

should think about if they want to improve the quality of their results. In other words, going
through the formal phases of the rational decision-making model may make sense if you want to
ensure you make the optimal decision.

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 Source: [Link]

Figure 6: Steps in the rational decision-making model

While decision-makers can fall off track during the process, research shows that limiting the
search for alternatives at the fourth phase is the most difficult and can lead to failure. One study
found that in 85 percent of the cases analyzed, no alternate generation occurred.

successful managers are clear about what they want from the beginning of the decision-making
process, establish targets for others to meet, conduct a free search for answers, seek help of key
employees, and avoid using their position to compel their opinion.

Decision-makers can learn a lot from the rational decision-making paradigm. First and foremost,
while making a decision, make sure you define your choice criteria before searching for all
options. This will keep you from falling in love with one option and narrowing your criteria as a
result.

As an example, suppose you began looking for automobiles before deciding on your criteria. You
may come across an automobile that you believe accurately embodies your sense of style and
form an emotional attachment to it. Then, because you adore this car, you may convince yourself
that the vehicle's fuel efficiency and creative braking system are the most crucial factors.

You may discover after acquiring it that the vehicle is too small for all of your friends to ride in the
back seat while you and your brother sit in the front, which is something you should have
considered! Setting criteria before looking for alternatives can help you avoid making blunders
like this.

Another benefit of the rational model is that it encourages decision-makers to consider all options
rather than just a few. You are more likely to make an effective decision if you generate many

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 alternatives that cover a wide range of possibilities. You will not need to sacrifice one criterion
for the sake of another.

Making “Good Enough” Decisions

The bounded rationality model of decision-making acknowledges our decision-making

processes' limitations. According to this concept, individuals consciously limit their options to a
manageable set and select the best option without completing a thorough search for alternatives.

The tendency to satisfice, which refers to accepting the first alternative that fits your minimum
criteria, is an important aspect of the bounded rationality approach. Many college grads, for
example, do not search for employment possibilities on a national or worldwide level.

Instead, they narrow their search to a specific geographic area and accept the first offer in that
area, even if it isn't the best employment opportunity. Satisficing is similar to rational decision-
making. Instead of selecting the best option and maximizing the prospective outcome, the
decision-maker saves time and effort by accepting the first option that comes to mind.

Making Intuitive Decisions

The intuitive decision-making model has risen to prominence as a powerful decision-making tool.
It refers to making decisions without thinking about them. Eighty-nine percent of managers polled
admitted to making judgments based on intuition at least occasionally, and 59 percent claimed
they did it frequently.

Given that managers are regularly confronted with time constraints, a great deal of ambiguity,
highly visible and high-stakes outcomes, and changing conditions, it's understandable that they
wouldn't have time to go through all of the steps in the rational decision-making model.

When CEOs, financial analysts, and healthcare professionals are asked about the key decisions,
they rarely credit their success to chance. It may appear that they are speculating on the best
course of action to the untrained eye, but it turns out that they are consistently making judgments
based on a different model than was previously assumed.

According to studies of life-or-death judgments made by fire chiefs, pilots, and nurses, these
specialists do not choose from a list of well-considered options. They don't choose the best
option from a list of two or three. Rather, they just consider one possibility at a time.

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 According to the intuitive decision-making paradigm, professionals making decisions scan the
environment for signs to recognize patterns in a given circumstance. They can use their prior
experience to play a probable course of action to its conclusion once a pattern is identified. These
decision-makers understand how well a specific solution might work based on their training,
experience, and understanding.

If they run the mental model and discover that the solution isn't going to work, they tweak it and
retest it before putting it into practice. If it is still not regarded as a viable solution, it is eliminated
as a possibility, and a new idea is evaluated until a viable solution is discovered. The decision-
maker sets the solution in motion once a viable path of action has been determined.

Making Creative Decisions

Creative choice making, in addition to rational decision making, bounded rationality models, and
intuitive choice making, is an important aspect of becoming an effective decision-maker. The
creation of new, inventive ideas is what creativity is all about.

Because of the flattening of companies and fierce competition among them, individuals and
organizations are being pushed to be more innovative in their decisions, ranging from cost-cutting
to developing new business models.

Please keep in mind that though creativity is the initial stage in the innovation process, the two
are not synonymous. Innovative thinking begins with original concepts, but it also necessitates
realistic preparation and execution.

In some fundamental ways, the five phases of creative decision-making are comparable to the
preceding decision-making frameworks. All of the models involve a stage called problem
identification, which identifies the need for problem solutions. It is impossible to solve an issue if
you do not realize that you have one. The five steps to creating creative decisions are identical to
those in the preceding decision-making process.

The process in which the decision-maker intentionally thinks about the situation and acquires
knowledge is called immersion. Having or obtaining expertise in the area being researched is the
key to success in creative decision-making. Then comes incubation. The individual puts the
matter aside and does not worry about it for a while during incubation. The brain is working on
the problem u at the moment.

Then there's illumination, or the "aha" moment when the person realizes the answer to the
problem, generally when they least expect it. This is analogous to the "eureka" moment
experienced by Archimedes, an ancient Greek inventor who discovered a solution to a problem
he was working on while bathing.

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 Finally, the verification and application step occurs when the decision-maker deliberately
confirms the solution's practicality and puts the decision into action.

Source: [Link]
Figure 7: Creative decision-making process

How Do You Know If Your Decision-Making Process Is Creative?

To assess the extent of creativity in the decision-making process, researchers look at three
factors. The amount of thoughts a person can develop is referred to as fluency. The degree to
which thoughts differ from one another is referred to as flexibility. Your decision-making process
is flexible if you can come up with different answers to an issue. The term "originality" refers to
the distinctness of a concept.

You could call Netflix's founder and CEO, Reed Hastings, a creative individual. At least two
creative components can be seen in his decision-making process. We don't know how many ideas
he had throughout his career, but they're all rather distinctive. Hastings got accepted to Stanford
University after teaching math in Africa with the Peace Corps.

He built a successful debugging tool soon after starting employment at a software business,
which led to the computer troubleshooting company Pure Software in 1991. Hastings launched
Netflix in 1997 after a merger and subsequent sale of the resulting company, which changed the
DVD rental sector by offering online rentals with no late fees. Hastings was elected to Micros in
2007.

Source: [Link]

Figure 8: Dimensions of Creativity

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 According to some experts, creativity is the result of a combination of three factors: (1) people's
personality qualities (openness to new experiences, risk-taking), (2) their attributes (expertise,
imagination, motivation), and (3) the surroundings (encouragement from others, time pressure,
and physical structures). According to a study, people who are receptive to new experiences are
less conscientious.

There are numerous methods for enhancing and improving creativity. Linus Pauling, the Nobel
Laureate who popularized the idea that vitamin C can assist strengthen the immune system,
stated, "Having a lot of ideas is the best approach to have an excellent idea." Brainstorming is a
popular method for generating ideas. Brainstorming is a group practice of generating ideas that
adhere to a set of rules that include no idea critique during the brainstorming process, the belief
that no suggestion is too insane, and building on existing ideas (piggybacking).

According to studies, having many ideas leads to higher idea quality in the end, so setting high
idea quotas, where the group must reach a particular number of ideas before finishing, is
recommended to minimize process loss and maximize brainstorming efficacy.

Another unique feature of brainstorming is that the more people involved, the better the decision
outcome will be because the group will have a wider range of backgrounds and methods to draw
from. Wild storming is a type of brainstorming in which the group concentrates on seemingly
implausible ideas and then imagines what would have to happen to make them a reality.

Ideas for Enhancing Organizational Creativity

We've seen how important organizational creativity is to businesses. Here are some tips for
improving organizational creativity in teams.

Team Composition (Organizing/Leading)

• Make your team more diverse to have more inputs to work with and more opportunities to create
functional conflict while avoiding personal conflict.

• Changing the composition of a group can help to spark fresh ideas and interaction patterns.

•Leaderless teams can provide people the opportunity to innovate without worrying about pleasing
others right away.

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 Team Process (Leading)

• Use brainstorming to produce ideas—remember to establish a high objective for the number of
ideas the group should generate, promote crazy thoughts, and take breaks from brainwriting.

• To avoid several systematic group process errors, use the nominal group methodology in person
or electronically. Take into account anonymous input as well.

• Visualize issues and solutions using analogies.

Leadership (Leading)

• Create challenges for teams to keep them involved but not overwhelmed.

• Rather than telling individuals what goals to attain, let them select how to attain them.

• Encourage and applaud the creativity, even when it results in a blunder. However, put up
procedures for learning from mistakes.

• Be a role model for creative thinking.

Culture (Organizing)

• Establish organizational memory so that people don't waste time on mundane chores.

• Create a lively and hilarious physical environment favorable to creativity—this is a place where
ideas can flourish.

• Make creative conduct a part of the performance evaluation process. And finally, avoiding
groupthink can be an important skill to learn.

The four different decision-making models—rational, bounded rationality, intuitive, and creative—
vary in terms of how experienced or motivated a decision-maker is to make a choice. Choosing
the right approach will make you more effective at work

and improve your ability to carry out all the P-O-L-C functions.

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 Source: [Link]

Figure 9: Decision Making Model

Lesson 2.3:

Decision-Making Techniques; Individual vs. Group

Lesson Summary

Individual decision-making in organizational behavior is just as simple as the phrase

implies. When considering individual versus group decision-making, a group decision is one made
by several people, while one person makes an individual decision.

Learning Outcomes
1. Understand the difference between individual and group decision-making techniques;
2. Acquire sufficient knowledge of individual and group decision-making techniques; and
3. Enumerate their difference.

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 Motivation Question

Which do you think are the best techniques in decision-making? Individual decision or group
decision? Why?

Discussion

6 Decision-Making Techniques for group

The bulk of the time, as a team manager, you have the last say, little project choices. However, there
will be numerous moments when your squad must determine the right course of action. This can be a
daunting concept for a leader who wants to maintain a good connection among their group, given all
different perspectives and personalities.

It's critical to discover the most successful ways to make decisions as a team to keep the peace while
also obtaining the greatest answers to project questions. This will ensure that your workflow runs
smoothly and that office drama created by opposing perspectives is minimized

. We've developed a list of six group decision-making procedures to employ with your team so that you
can settle workplace concerns and concerns in a professional manner.

1. Brainstorm Ideas

When you think about thunderstorms, you probably picture them as dispersed, erratic, and unexpected.
While a team brainstorming session is similar, it is done with a specific goal in mind. Even if the goal
is only to generate ideas, this group decision-making process is terrific for sharing free-flowing ideas
with the rest of the team.

The goal of these brainstorming sessions is to come up with as many ideas as possible. These
conferences are frequently more focused on generating fresh ideas than on making a final decision.
However, one concept will stand out above the rest in some circumstances and be selected as the
solution.

2. Nominal Group Technique

This one-of-a-kind group decision-making technique includes a voting mechanism in addition to

brainstorming. However, the Nominal Group Technique is more complicated than counting how many
hands are raised for each option. Instead, each group member can cast a vote and explain why they
believe their decision is the best.
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 Depending on the topic of discussion, there are a few different methods to employ this strategy. If the
topic is very contentious, you might wish to have each team member express their views in a secret
email before presenting the final results and reasons without naming anyone. Alternatively, you can
allow members to voice their emotions during an open discussion and then take each vote separately.

3. Delphi Technique

You may need to step in and narrow down the possibilities for a team struggling to achieve a
consensus on a crucial decision. The Delphi Technique aggregates all of the ideas for the group's
manager to break down into a smaller number of alternatives. He or she then returns to the group with
the remaining options for them to consider.

If the team cannot reach an agreement, the manager will narrow the options even further until they can
make a decision. When there are fewer outcomes to choose from, it is easier for groups to agree.

4. Put it to a Vote

A simple vote may be the easiest method in circumstances where the decision will be made based on
a simple yes or no response. This strategy can be a simple way to solve minor problems or figure out
the best course of action for simple questions. It will be up to you, as the team manager, to choose
whether a simple vote will enough.

This type of decision can be made without having to attend a formal meeting. To save time, simply
send an email poll or utilize your project management software's communication features to collect
everyone's input.

5. Rank the Possibilities

Why wouldn't rankings work for a business? They work for selecting who is the best in sports leagues
like the NFL and MLB, so why wouldn't they work for a business? It may be a wonderful group decision-
making procedure for topics or concerns with many potential outcomes, whether you decide on an
idea's ranking using a voting system or working as a team to prioritize them.

This strategy can be implemented via email, and online communication tool, or a quick meeting. One
technique to figure out how the various situations should be ordered is to make a personal list of how
they would rank them. Then, using basic math, determine the average place where each alternative
should be represented by combining the lists.

6. Pros & Cons List

This isn't a piece about adolescent dating. However, this typical approach for deciding whether or not
someone is worth starting a relationship with can also be used to make group decisions. Dialectical
Inquiry is a term used in business to describe this process.

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 While the word dialectical comes from the Greek word for "argue," this debate style throws the
advantages and disadvantages against each other, rather than your team. In actuality, it might be as
simple as drawing two columns on a whiteboard or large sheet of paper and noting all the positive and
negative aspects of the unfinished idea. When making a list, the column with the most items will usually
come up on top. Improve

You will notice a significant increase in productivity and problem-solving among your team if you
implement one or more of these tactics in your company. Examine some of the impending decisions
your team will face shortly and decide which of these strategies will be the most effective.
You can also engage in a variety of team-building activities with your group to improve teamwork.

The important characteristics of decision-making may be listed thus:

1. Goal-Oriented:

Decision-making is a process that is focused on achieving a specific goal. Decisions are

frequently made with a specific purpose or objective in mind. The goal is to progress "toward an
ideal state of circumstances."

2. Alternatives:

A decision should be thought of as a "point in a stream of activity." Search and selection are the
two actions that define it. The manager seeks for possibilities, makes judgements, and weighs
options in order to take action. Choices lead to choices, which lead to [Link] is the process
of deciding on a course of action to solve an issue. When you don't have a choice of what to do,
you can't make a decision.

3. Analytical-Intellectual:

Decision-making isn't solely a mental exercise. It encompasses both conscious and unconscious
parts, as well as intuitive and deductive logic. Part of it can be learned, but the decision maker's
characteristics determine part of it.

Decision-making isn't entirely quantifiable, yet it's also not solely dependent on logic or intuition.
Emotions or instincts play a big role in a lot of decisions. The decision means that the decision-
maker has complete flexibility in making the ultimate decision; it is uniquely human and results
from deliberation, appraisal, and thought.

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 4. Dynamic Process:

Rather than being viewed as a single static entity, decision-making is viewed as a process. It is
the process of efficiently utilizing inputs to solve specific issues and create useful outputs.
Furthermore, it is a procedure for 'finding worthwhile things to accomplish in a dynamic
environment.

A manager, for example, may consistently hire employees based on merit and, on occasion, select
applicants recommended by a powerful party. Managers use discretion and judgment to make
appropriate decisions based on the circumstances.

5. Pervasive Function:

Decision-making pervades all levels of management and touches every aspect of a business. A
manager does what he does solely through decision-making; the end products of a manager's job
are decisions and acts. The essence of a manager's work is decision-making.

6. Continuous Activity:

The life of a manager is one of constant decision-making. He makes decisions on a regular and
consistent basis. It's not a one-time thing.

7. Commitment of Time, Effort and Money:

Making a decision entails devoting time, effort, and money. Depending on the decision, the
commitment could be brief or long-term (e.g., strategic, tactical or operating). Following a
decision, the organization advances in a defined direction in order to fulfill the objectives.

8. Human and Social Process:

Decision-making is a human and social process that involves reasoning, intuition, and judgment.
When selecting a variety of options, the human and societal aspects of the decision are frequently
considered. Managers in a labor surplus, a capital-hungry country like India, for example, can't
just shut down plants, slash divisions, and extend the golden handshake to everyone.

9. Integral Part of Planning:

'Decision-making is at the heart of planning,' according to Koontz. Both are mental activities that
necessitate deliberation and judgment. Both are working for the same goal. Both are contingent
on the situation. Both need you to choose amongst various possibilities. Both are based on
forecasts and assumptions about future risk and uncertainty.

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 Types of Decision-Making:
Managerial decisions at various moments in time can be categorized as follows:

1. Personal and Organizational Decisions:

Personal decisions include whether or not to watch television, study, or retire early. Managers as
people are responsible for such decisions. They have an indirect impact on the organization. A
personal decision to buy Tanduay Rhum instead of Emperador brandy, for example, benefits one
corporation indirectly through the sale while hurting another owing to the lost sale. Personal
choices aren't allowed.

Managers, in their official or formal role, make organizational choices. These decisions are made
in the organization's best interests and can be delegated. Managers are supposed to consider the
interests of all stakeholders, including employees, customers, suppliers, the general public, and
others, while attempting to produce value for the firm. They must make a choice.

Individual and Group Decisions:

A single person makes individual choices. The majority of the decisions are routine.

Advantages and Disadvantages of Group Decision-Making:

On the other hand, group choices are made by a group of people who have been formed
specifically for this purpose (for example, a college admissions committee or a company's board
of directors). When contrast to individual judgments, group decisions have far-reaching
implications that affect many people and departments, necessitating careful consideration,
deliberation, and argument.

Advantages:

1. 1. A collection of people possesses more information than a single person. Members from
many disciplines can contribute more information and knowledge on the issue.
2. 2. A group can come up with a larger number of options. It can contribute more experience, a
wider range of viewpoints, and a complete investigation of facts than a single person.

3. People involved in group decisions are more likely to accept and adhere to the solution
because they now regard it as their own and have a psychological interest in its success.

4. People have a greater understanding of the decision because they have seen and heard it
develop; this paves the path for the decision's smooth execution.

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 5. Interaction between people with different points of view leads to improved understanding.

Disadvantages:

1. Groups are renowned for wasting time. They could squander a lot of time and effort clowning
around instead of getting organized.
2. Groups impose conformity demands; other flaws, such as group mentality, push members to
compromise on the lowest common denominator.
3. The presence of some prominent and influential members of the organization may intimidate
and prevent other members from freely participating. Dominance is ineffective because it
discourages the group's finest problem solvers.
4. Obtaining participation from multiple individuals in the decision-making process may be
prohibitively expensive.
5. Because the group is made up of separated individuals, it is simple to identify them.

Lesson 3.3:

Factors Affecting Decision Making

Lesson Summary
Several important factors influence decision-making. Significant factors include past
experiences, various cognitive biases, an escalation of commitment and sunk outcomes,
individual differences, including age and socioeconomic status, and a belief in personal
relevance.

Learning Outcomes
1. Understand the different factors that affect decision making,
2. Acquire sufficient knowledge in factors that affect decision making; and
3. Enumerate each factor that affects decision-making.

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 Motivation Question

Think of a situation that can change or affect your decision in life.

Discussion
Every day, people are faced with a plethora of options, both large and minor. The study of how
people make decisions has gotten a lot of interest in cognitive psychology. Theories have been
developed to explain how people make decisions and what factors impact decisions now and in
the future. Heuristics have also been studied to better understand how people make decisions.

People make decisions on a variety of topics. They make political decisions and personal
decisions such as medical, romantic, and job choices, and financial decisions, which may involve
some of the other types of decisions and judgments. The decision-making process is frequently
tailored to the decision at hand. Some options appear straightforward and basic.

The purpose of this paper is to discuss decision-making in terms of the different sorts of
decisions people make, the factors that influence decision-making, and many heuristics that are
commonly explored and used in the decision-making process. The article will also look at what
happens after a decision has been made and how current decisions influence future behavior and
decision-making. Finally, some concluding remarks.

Factors that Influence Decision Making

A number of crucial elements influences decision-making. Past experiences, various cognitive
biases, an escalation of commitment and sunk results, individual characteristics, such as age and
socioeconomic position, and a sense of personal relevance are all significant contributors. All of
these factors have an impact on the decision-making process and the decisions that are made.

Decisions made in the past can influence decisions made in the future. According to Juliusson,
Karlsson, and Garling (2005), past decisions impact future decisions. It comes to reason that
when a decision yields a positive result, people are more likely to make the same option in
comparable circumstances. On the other hand, people try to avoid making the same mistakes
they have made in the past (Sagi & Frieda).

This is essential because future decisions based on previous experiences are not always the
optimal judgments. Highly successful people in financial decision-making do not make
investment selections based on prior sunk outcomes but rather by assessing options without
respect for past experiences; this approach differs from what one may expect (Juliusson et al.,
2005).

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Mission: Development of a highly competitive human resource, cutting-edge scientific knowledge TP-IMD-02
V0 07-15-2021
and innovative technologies for sustainable communities and environment.
No.
 There are various cognitive biases that influence decision-making in addition to past experiences.
Cognitive biases are thought patterns based on observations and generalizations that can lead
to memory errors, erroneous judgments, and erroneous logic (Evans, Barston, & Pollard, 1983;
West, Toplak, & Stanovich, 2008).

Cognitive biases include, but are not limited to: belief bias, which is the over-reliance on prior
knowledge in making judgments; hindsight bias, in which people quickly explain an event as
inevitable after it has occurred; omission bias, in which individuals remove information viewed as
risky; and confirmation bias, in which people notice what they expect in observations (Marsh,
2000).

Cognitive biases influence people's decision-making by causing them to over-rely on or give

greater credibility to everyday observations and prior knowledge while discarding information or
observations that are viewed as unclear without taking the whole picture into account. While this
impact can occasionally lead to poor conclusions, cognitive biases can sometimes help people
make more effective selections.

Decision-making may be influenced by an escalation of commitment and sunk outcomes, which

are unrecoverable costs, in addition to past experiences and cognitive biases. According to
Juliusson, Karlsson, and Garling (2005), people make decisions based on an illogical escalation
of commitment. This means that people put more time, money, and effort into a decision to which
they feel committed.

Individual variations may also have an impact on decision-making. According to research,

decision-making is influenced by age, socioeconomic level (SES), and cognitive capacities (de
Bruin, Parker, & Fischoff, 2007; Finucane, Mertz, Slovic, & Schmidt, 2005). Finucane et al.
discovered a significant difference in choice making with age; that is, when cognitive skills
diminish with age, choice-making becomes more difficult.

Furthermore, elderly adults may be overconfident in their decision-making abilities, limiting their
capacity to implement solutions (de Bruin et al., 2007). Finally, evidence supports the idea that
elderly people prefer fewer options than younger people (Reed, Mikels, & Simon, 2008).

Individual differences in age are merely one factor that influences decision-making. According to
de Bruin et al. (2007), people in lower socioeconomic groups have less access to education and
resources, making them more vulnerable to unfavorable life events that are often beyond their
control; as a result, low socioeconomic individuals may make poorer decisions based on previous
decisions.

Aside from prior experiences, cognitive biases, and individual differences, personal importance
has an impact on decision-making. People are more inclined to decide if they believe what they
decide matters. Acevedo and Krueger (2004) looked at people's voting tendencies and found that
people are more likely to vote when they believe their view is representative.
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Vision: A globally competitive university for science, technology, and environmental conservation.
Mission: Development of a highly competitive human resource, cutting-edge scientific knowledge TP-IMD-02
V0 07-15-2021
and innovative technologies for sustainable communities and environment.
No.
 Major factors that can influence decision making include:

• Management style
• A wide range of cognitive biases; • Change;

• Information and communication technology

• Politics, etc.

• Collaboration,

• financial situation,

• societal accountability

Internal factors that affect decision making

• Attitude is how you react when faced with making a decision. It is best to have a positive

attitude because it often helps one see more options and make decision-making easier.

• Emotions how you feel in that certain situation

Ethics what is your moral stance is that certain situation

Page19 of19
Vision: A globally competitive university for science, technology, and environmental conservation.
Mission: Development of a highly competitive human resource, cutting-edge scientific knowledge TP-IMD-02
V0 07-15-2021
and innovative technologies for sustainable communities and environment.
No.