Types of Decision Making

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Which type of decision involves activities that become automatic over time and don't require much mental effort?

Routine decisions

Non-routine decisions are characterized by:

Being based on emotions and intuition

Which type of decision relies heavily on abstract elements like perceptions and intuition?

Unstructured decisions

Structured decisions involve:

Gathering information from relevant sources

Which type of decision may involve selecting an investment opportunity?

Non-routine decisions

What distinguishes routine decisions from non-routine decisions?

Pattern emergence over time

What is a key characteristic of structured decisions?

Clear criteria for evaluation and selection

Which type of decision-making involves considering personal tastes?

Unstructured decisions

What makes unstructured decisions inherently complex?

Dependent on personal tastes

When picking out clothes for work, what type of decision-making is typically involved?

Individual decisions

In what setting do group decisions usually take place?

Professional settings where teams collaborate

What helps us gain insight into how to approach certain situations in day-to-day life?

Understanding distinctions between structured and unstructured decisions

Study Notes

Decision Making Types

Decision making is a crucial part of our daily lives, whether it's choosing what to eat for breakfast or deciding which career path to take. There are various types of decisions people make depending on their circumstances, goals, and preferences. Here we delve into some common classifications of these choices.

Routine vs Non-routine Decisions

Routine decisions involve activities that you do regularly without much thought. For instance, brushing your teeth every morning after waking up can be considered routine. These tasks often become automatic over time because they don’t require significant mental effort. On the other hand, non-routine decisions are those where there isn’t a specific pattern that emerges over a period; rather, you need to think through each situation carefully before reaching a conclusion. Examples of such situations could be purchasing a house or selecting an investment opportunity.

Structured vs Unstructured Decisions

Structured decisions rely heavily on data analysis and quantitative methods. In this case, the process involves gathering information from relevant sources, organizing it using spreadsheets or databases, identifying patterns or trends within the data set, and finally drawing conclusions based on statistical evidence. Conversely, unstructured decisions revolve around more abstract elements like perceptions, beliefs, emotions, intuition, and values. It means that while structured decisions have clear criteria for evaluation and selection, unstructured ones lack such guidelines—the decision-maker has to consider numerous factors simultaneously, making them inherently complex.

For example, if you want to buy a new laptop, you would look up reviews online, compare prices across different stores, check warranty coverage, etc., all of which fall under structured decision-making. However, when deciding how to spend leisure time, personal tastes come into play, thus making it an unstructured choice.

Individual vs Group Decisions

Individual decisions occur when only one person makes a call regarding something important. This type typically happens during everyday life - picking out clothes for work or deciding what movies to watch with friends. Whereas group decisions involve multiple individuals weighing in on matters collectively. This scenario usually arises in professional settings where teams must collaborate towards achieving shared objectives, such as creating project plans together.

In summary, understanding these distinctions helps us appreciate the complexity involved in tackling diverse challenges presented by varying contexts. By grasping these nuances, we gain insight into how best to approach certain situations in our day-to-day lives.

Explore the different types of decision-making processes that individuals and groups encounter in their daily lives. Learn about routine vs non-routine decisions, structured vs unstructured decisions, and individual vs group decisions to gain insights into how people make choices under various circumstances.

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