REACTION PAPER Prepared & Submitted By:

Re: Individual Decision-Making REGINE EINA CALISIN

September 13, 2022 MM-MPA, 1ST

Decision-making is a lifelong process from the cradle down to the

grave. It is an integral part of our lives.
Essenti ally, decision-making is all about  choosing from the available
opti ons. It is the process through which one opti mal choice is made from
several possible alternati ves of soluti ons for a given situati on that will
ensure maximum benefi t and least risk than the others which were not
selected. It is the culminati on of an eff ort in the form of a fi nal choice out of
a set of alternati ves. In simple terms, to decide is to choose one thing over
another.
The process of decision-making is immensely signifi cant in the context
of administrati on in the public domain. It is the mechanism through which
the administrati on achieves its goals. At each and every juncture of policy
formulati on as well as its implementati on, it is the right and ti mely decisions
that ensure the success of the public policies. The eff ecti ve running of an
organizati on is based on decisions that are to be taken at every step.
Decision leads to acti on. Goals can only be achieved through planning,
and to make plans is to decide on what to do towards achieving the goal.
”Two roads diverged in a wood, and I—I took the one less traveled by, and
that has made all the diff erence.” But unfortunately, not every decision is as
simple as “Let’s just take this path and see where it goes,” especially when
you’re making a decision related to your business or organizati on.
Whether you manage a small team or are at the head of a large
corporati on, your success and the success of your company depend on you
making the right decisions—and learning from the wrong decisions.
The success or failure of an organizati on relies on the sound decisions
of the management. Decision-making basically involves the following steps:
fi rst, identi fi cati on of the problem or issue at hand; second, gathering of
relevant informati on; third, formulati on of alternati ves; fourth, evaluati on
or weighing of the said alternati ves; fi ft h, selecti on of the best opti on; sixth,
implementati on of the chosen opti on or decision; and lastly, review and
evaluati on of the said decision. Evaluati ng the decision's eff ecti veness. The
last step in the process of decision-making is evaluati ng or monitoring the
decision's eff ecti veness. Monitoring is required to determine the
eff ecti veness of the implemented decisions.

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REACTION PAPER Prepared & Submitted By:
Re: Individual Decision-Making REGINE EINA CALISIN
September 13, 2022 MM-MPA, 1ST

The most important thing to remember when faced with an important

decision is to determine what type of impact the decision will have on the
people involved. Many bad decisions can be remedied, however, the more
people the decision impacts, the more diffi cult it will be to remedy the
situati on.

TYPES OF DECISION-MAKING
There are several types of decision-making, namely: a.) Programmed
and b.) Routi ne- they are repeti ti ve in nature because there is already a
standard of procedure to be followed, a precedent has been laid out, and
hence, suitable to be delegated to subordinates; c.) Unprogrammed- non-
repeti ti ve in nature, a new decision should be made on issues that has not
occurred before, hence, cannot be delegated and needs to be decided by the
top management; d.) Strategic- non-repeti ti ve in nature, aff ects the
objecti ves, core or organizati onal framework and policy of the organizati on,
hence, should be confi ned to the discreti on of the top management; e.)
Organizati onal- decision made by an executi ve in his offi cial capacity; f.)
Personal- decision taken by an executi ve in his personal capacity; g.) Policy
or Tacti cal- decision involving formulati on of policies; h.) Operati onal-
decisions made on a day to day business transacti ons; i.) Major- decisions
taken only by the top management; j.) Minor- decisions that can be taken by
the middle management; k.) Group- decisions made by a group of individuals
based on mutual agreement; and l.) Individual- decision taken by a single
individual.
An individual decision is really important in an organizati on especially
on the part of the people holding managerial and executi ve positi ons where
their decisions will necessarily aff ect the whole operati ons.

FACTORS THAT INFLUENCE DECISION-MAKING

There are factors that infl uence decisions such as culture,
percepti ons, belief systems, values, atti tudes, personality, knowledge, and
the insight of the decider.

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REACTION PAPER Prepared & Submitted By:
Re: Individual Decision-Making REGINE EINA CALISIN
September 13, 2022 MM-MPA, 1ST
These factors or infl uences somehow aff ect the style of leadership in a
parti cular organizati on. Decision-makers have parti cular ways of working.
There are also acti ons that should be taken to keep tendencies from
undermining intent. We have the following kinds of leaders: the Visionary,

Guardian, Moti vator, Flexible, and Catalyst. The level of parti cipati on of the
leader and the subordinates or consti tuents can also be measured whether
the decision was made in a manner that is a.) Autocrati c- where the leader
decides unilaterally, b.) Considered Command- where the leader decides but
sti ll gets inputs or reacti ons from the team before making a fi nal decision,
c.) Consultati ve- where the leader solicits ideas fi rst prior to deciding, d.)
Exercise of Veto Power- where the majority decides while the leader can
override the same through the veto power, e.) Majority- where everyone
has the right to vote including the leader, f.) Consensus-where everyone
agrees to implement the decision as long as the issues is not of serious
nature, and g.) Delegati on- where the leader delegates the task/s under
certain conditi ons or parameters.
Organizati ons may test or analyze their decisions by listi ng down the
strengths, weaknesses, opportuniti es and threats or risks. This is the so-
called SWOT Analysis. By doing this SWOT Analysis, an organizati on can see
how the company’s strength can be used to maximize the opportuniti es set
forth, and to how these strengths can minimize the threats on risks; and on
the other hand, what acti ons can an organizati on take in order to minimize
its weaknesses using the opportuniti es, and to minimize the said weaknesses
in order to avoid threats.

DECISION-MAKING MODELS
A decision-maker can make use of diff erent kinds of decision-making
models, namely: the Rati onality Model, Bounded Rati onality Model, Intuiti ve
Model, and Creati ve Model.
The Rati onality Model requires a decider possess all relevant
informati on. It is a very casual assumpti on here that all the above rati onal
steps in decision-making are easy to follow, and absolute predicti on of
success by choosing the best course of acti on or decision. In reality, the
process is quite complex and not as simple as menti oned above as there are
many unforeseen factors that crop up.

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REACTION PAPER Prepared & Submitted By:
Re: Individual Decision-Making REGINE EINA CALISIN
September 13, 2022 MM-MPA, 1ST
Bounded Rati onality Model states that there are limitati ons on human
capacity in formulati ng and solving complex problems that arise from
internal or psychological factors and external or environmental factors.
Hence, 'one best soluti on' or completely 'rati onal' choice of decision can
never be achieved because the administrator only has limited knowledge of
a given

situati on. This is used when the minimum criteria is met, and the decider is
not willing to invest much ti me in making a decision.
Intuiti ve Decision-Making Model connotes a decision made without
resorti ng to rati onal steps or formal procedures but on mere judgment. This
is used when the decider has already an experience on the issue at hand,
and there is ti me constraint where analysis by paralysis would be costly and
not advisable.
Creati ve Decision-Making Model is used when the problem or issue is
not clear, and there is a need to innovate or generate new soluti ons. This is
resorted to when the decider has an ample ti me to think of ideas and
formulate a new method. Here, the decider can think outside the box, and
outskirt himself in order to see the bigger picture and therefore, create a
brilliant soluti on.

LEADERSDHIP STYLES OF INDIVIDUAL DECISION-MAKING

There are leadership styles in individual decision-making which aff ects
the results, that is, the success or failure of the operati ons.
Directi ve- is authoritati ve, aggressive, and expects results. The leader
decides based on his own ideas and intuiti on; Consultati ve- he makes a
decision aft er consulti ng from other people or experts; Delegati ve- the
authority to decide is granted to others; and Consensual- the decision is
made together with other individuals.

ADVANTAGES AND DISADVANTAGES OF INDIVIDUAL DECISION-MAKING

Individual decision-making has its advantages and disadvantages

especially when it is compared with decisions made by a group.

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REACTION PAPER Prepared & Submitted By:
Re: Individual Decision-Making REGINE EINA CALISIN
September 13, 2022 MM-MPA, 1ST
It is easier to make a decision alone than when you do it with several
people who have their own percepti ons and point of views which may be in
confl ict with your own. Deciding on your won also saves ti me, eff ort and
money; you can focus on the issues and not be distracted by other people;
and it is easier to pinpoint who is responsible in case things go south.

However, one decision lacks potenti al to collect more informati on as

compared to a group where they can brainstorm or exchange ideas. And it
will take more ti me and eff ort to pinpoint who is liable.
An individual making a decision alone has the tendency to focus on his
own personal interest rather than take into account the interest and welfare
of the enti re organizati on.
Decision-making can be improved through constant practi ce, having in
mind the pros and cons, precedents and stati sti cs, by measuring the results,
conti nuous learning and trainings, and by listening to experts. Making a
decision should take ti me, undivided focus, and skills. The success of an
organizati on depends on the leader. A great leadership depends on brilliant
decisions taken at the right ti me. Therefore, decision-making is crucial to the
status and future of an organizati on.