THE 13 TYPES OF DECISIONS AND THEIR CHARACTERISTICS (WITH EXAMPLES) - CULTURE VOCABULARY - 2024

There are different types of decisions that can be made when deciding when faced with a difficult or uncertain situation. Generally, decisions can be classified according to their scope, programming, informational situation and objective.

A decision is a selection made between two or more available alternatives. Decision making is the process by which the best alternative is chosen to make that choice. Behind a simple decision process there are many reasoning processes that influence this decision making.

A person can make an emotional decision, in the euphoria of the moment, or they can make a well thought out and researched decision. Depending on the case, different processes for decision making can be defined.

The first step to making successful decisions is knowing that not all decisions are generated in the same way. It is important to differentiate the nature of the decision in order to make the most appropriate choice.

Main types of decisions and their characteristics

1- Scheduled decisions

Scheduled decisions are those that deal with issues or problems of a repetitive or routine nature, so specific ways are generally developed to handle them.

In an organization these decisions are generally made by lower-level managers.

Example

Decisions of this type may include aspects such as purchasing raw materials, granting an employee a permit, supplying the goods to employees, among other scenarios.

In everyday life, these decisions might include having coffee in the morning, having oatmeal with fruit for breakfast, or brushing your teeth after lunch.

2- Consensus decisions

Consensus decisions are those in which the members of a group develop a decision and agree to support it, giving priority to the best interests of that group.

Consensus can be professionally defined as an acceptable resolution, which can be supported even if it is not the "favorite" option of each individual.

Consensus decisions take into account the social, economic, legal, environmental and political effects of the subsequent application of said decisions; and they relate to the processes of deliberation and finalization of a resolution.

Example

Democracy and voting are common examples of decisions by consensus. On a more personal level, it would serve as an example when a group of friends decide on their end-of-year trip at the end of university studies.

3- Decisions with extensive processes

Generally, these are the decisions that are made when the individual's choice involves making a significant investment.

Usually the decision process is extensive, as the individual seeks to have the maximum benefits. There are also risks involved in these types of decisions, so the individual must take them into account.

Example

Examples of this decision could be buying a home, moving to another country, or investing in a particular business.

4- Decisions with limited processes

These decisions involve nominal and not very high investments. These decisions do not take that long to be made, because the individual has some experience on the subject.

Currently, decisions with limited processes are often closely related to exposure to the media, since people can learn more about the elements, which helps in decision making.

Example

Examples of these types of decisions could be to buy a new brand of cereal whose ad was seen on television, or to watch a movie after the review was read on a Web page.

5- Personal decisions

Personal decisions refer to those that are directly related to the same individual who makes them. Generally, the effect of these decisions directly affects the personal life of the individual.

A personal decision must be made by the individual himself, since it cannot be delegated to other people, no matter how close they are.

Example

The choices about possible medical treatments in a disease are a good example of this type of decision.

6- Operational decisions

In a company or organization, operational decisions are less significant than other decisions. They are related to the day-to-day operations of the company.

Operational decisions are made while taking into account the policies that have been decided by the organization.

Operational decisions are made by low and middle level managers, because supervision is also involved in these decisions.

Example

For example, if it is decided that a bonus will be awarded to the employees of a company, the exact amount that will be paid to each employee will be an operational decision.

7- Organizational decisions

These types of decisions involve an individual with an official character, who is the one who will make a certain decision. These decisions can be delegated within an organization.

Example

An example of this type of decision can be made by the president of a country.

Many times these decisions can affect the functioning of an organization or state. For example, if the president of a country leaves office, it would affect the political organization of that nation.

8- intuitive decisions

In the context of decision-making, intuition can be defined as a non-sequential way of processing information.

Intuition is the mechanism by which implicit knowledge is made available during a decision process. Intuition can influence judgment through emotion or cognition; It has been suggested that this type of decision combines both approaches.

Individuals can use both intuition and other more deliberate decision-making styles interchangeably, but there is evidence that people tend to gravitate more toward one of the two styles.

Generally, people in a good mood lean towards intuitive styles, while people who are in a bad mood tend to be more deliberate. Intuitive decision making involves an instant or immediate understanding of a reaction or situation.

This type of decision making is generally quick and relies on the individual's emotions. Intuitive decisions can be made in management, in finance, and in high-risk situations.

Example

If a manager talks to a product supplier and, as a result of this exchange, senses that a harmonious relationship will not be possible, this manager may decide not to work with that supplier.

9- Unscheduled decisions

Unscheduled decisions are usually decisions that involve unique situations, so they are less structured than programmed decisions.

They are usually more complicated, since there is no old situation that can be applied to that particular scenario.

Example

A factory that has produced cornmeal for its entire useful life stops receiving corn inputs from its regular suppliers. The management of said factory must decide how to face this new scenario.

10- Risk decisions

In these types of decisions, there is generally a probability that the result will be very serious or catastrophic.

What differentiates risk decisions from other types of decisions is the possibility of one or more unwanted outcomes that must be taken into account.

Example

Some examples of situations where risky decisions are made include: changing lanes on the highway, what can be done to lower the risk of having cancer one day, delaying a task without affecting the final project, among others.

11- emotional decisions

Emotional decisions go hand in hand with the impulses generated by the need or feelings that are more difficult to control (love, anger, sadness, hysteria). They can be combined with logic or be carried away by simple emotion. In the case of the second, the chances of making a mistake are higher.

However, it should be clarified that emotional decisions also have a good purpose, since they are determined by homeostasis, that is, the one that guarantees our survival and balance.

Example

A person who has just found out about the loss of their young child, may make the emotional decision to commit suicide, since their emotions do not allow rationality to work.

12- Strategic decisions

They are mainly applied to the business field, specifically to senior positions in companies or people with the ability or freedom to move resources and personnel. Their purpose is to improve the benefits of the company and obtain the greatest economic benefit.

Example

A traditional beer company also decides to produce and sell wine and other spirits, allocating a large part of the resources to these new products.

13- Emergency decisions

These types of decisions are made when a desperate situation arises and in which there are no previous precedents on how to deal with it. It is typical of business areas, but also of other sectors such as health or financial, as well as in times when survival is in danger.

Example

A bar loses its license to put tables due to non-payment, these being the ones that reported 80% of the profits to the premises. Faced with this emergency situation, you must decide whether to definitively close or hire a delivery man so that people can enjoy food at home.

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