The 8 Types Of Decisions

What are the factors that help us or discourage us from making a decision?

Living is choosing, it is a constant change. In our daily life, we are all used 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 do I want in my pizza …) to those of great importance (what car do I buy, what do I want to be in life …), all of them go through the sieve of  our emotions and our rational thinking.

Making 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 decision . In general, manuals indicate that good decisions are those that are made reflectively and rationally, using an analytical style of thinking.

1. Rational decisions

For example, when buying a car, we would have to exhaustively compare the benefits 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 make 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 take into account it is more likely that we will reach better conclusions about which is the most appropriate car, in reality not all 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.

Continuing with the example of the car, and although we are able to make a rational examination of the makes and models and of our demands on the car we want to buy, it is likely that we feel a certain predilection (perhaps unconscious) for some brand or model above of others, and although rationally there are not sufficient reasons for this to be the case. This is explained by  heuristic thinking, and it is that human beings make decisions highly influenced by our motivations and hidden desires. And this doesn’t 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?

Actually, the important point when we are considering whether to make one decision or another is precisely to bring out all our conscious and unconscious thoughts, from the most rational to the most intuitive and emotional, and find a satisfactory middle ground 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 business perspective .

According to the forecast

If we take into account the level of structuring and foresight with which we make them, we can speak of programmed and unscheduled decisions .

3. Scheduled decision

These decisions are previously described and established by some type of more or less formal regulation, and their execution is carried out on the basis of a schedule. They 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 occur as a result of the interaction of the corporation with the human and institutional environment. They are usually spontaneous and tend to have a greater scope over time.

According to urgency

Taking into account the level of urgency with which decisions have to be made:

5. Routine decisions

When the circumstances are similar and the context is also similar, companies are likely to find a way 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 unfolding of events.

According to the importance for the company

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

7. Strategic

These types 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 corporations to 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 essential decisions 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 handling must be careful since operational decisions also include determinations on hiring and firing.