Research says you are likely to make 35,000 decisions every day, most of them unconsciously. Since all other activities of each day depend on the decisions you make, we cannot overemphasize the importance of making the right decision.
While some decisions seem effortless, others can leave us overwhelmed and uncertain. Effective decision-making is a crucial skill that can help you achieve your goals, manage your time effectively, and navigate life’s challenges with confidence.
This article is a guide on how to be a better decision-maker. It reviews 4 types of decision makers and states the root causes of poor decision-making.
What is Decision Making?
Decision-making is the process of choosing a course of action from a set of available alternatives. It is a fundamental skill that we use in all aspects of our lives, from making everyday choices like what to eat for breakfast to making major life decisions like where to live and what career to pursue.
Effective decision-making is essential for achieving your goals, resolving conflicts, and navigating life’s challenges. It involves a complex interplay of cognitive, emotional, and social factors.
Developing effective decision-making skills requires practice, self-awareness, and a willingness to learn from mistakes.
What are the 4 types of Decision Makers?
There are four main types of decision-makers, each with distinct characteristics, and approaches to making choices. Each type of decision-maker brings unique strengths and perspectives to the decision-making process.
While one type may be more dominant in an individual, all four styles can contribute to effective decision-making in different situations.
#1. Directive Decision-Makers:
Directive decision-makers are characterized by their decisive and assertive nature. They are confident in their judgment and prefer to take control of situations, making quick decisions based on their experience and instincts.
Directive decision-makers are often seen as leaders who inspire action and are well-suited for situations that require prompt and decisive action.
#2. Analytical Decision-Makers:
Analytical decision-makers are methodical and detail-oriented, preferring to gather and analyze extensive information before making a choice.
They are cautious and risk-averse, carefully considering all possible options and potential consequences before reaching a conclusion.
Analytical decision-makers are often seen as experts who provide sound and well-reasoned decisions, particularly in situations that require thorough evaluation and consideration of complex factors.
#3. Conceptual Decision-Makers:
Conceptual decision-makers are imaginative and big-picture thinkers, often seeing connections and possibilities that others might miss. They are open to unconventional approaches and are not afraid to challenge the status quo.
Conceptual decision-makers are often seen as innovators who bring fresh perspectives and creative solutions to the table, particularly in situations that require strategic thinking and a willingness to explore new possibilities.
#4. Behavioral Decision-Makers:
Behavioral decision-makers are relationship-oriented and value the input and perspectives of others. They are collaborative and seek consensus before making a choice, considering the needs and interests of those involved.
Behavioral decision-makers are often seen as team builders who foster a sense of inclusivity and shared ownership of decisions, particularly in situations that require cooperation and consideration of diverse viewpoints.
Read: What Makes a Good Team? 7 Tips for Team Building
What is a Poor Decision-making Skill?
Poor decision-making skills can manifest in various ways, hindering our ability to make informed, rational, and effective choices.
To identify poor decision-making skills, look out for these characteristics:
- Impulsiveness: Impulsive decision-makers often act on their first instincts or immediate emotions, leading to hasty choices that may not align with their long-term goals or best interests.
- Indecisiveness: Having difficulty making decisions due to overthinking, fear of making the wrong choice, or lack of confidence in one’s judgment. Indecisive individuals may delay making decisions, miss opportunities, or experience anxiety due to their inability to make timely choices.
- Bias and Prejudice: Biased decision-makers may overlook or disregard relevant information and make choices that favor their own perspectives or beliefs, potentially leading to unfair or discriminatory outcomes.
- Information Avoidance: Information-avoidant decision-makers may rely on incomplete or inaccurate data, leading to uninformed choices that could have been improved with more comprehensive information.
- Inability to Adapt to Change: Struggling to adjust decision-making strategies in response to new information, changing circumstances, or unexpected challenges. Rigid decision-makers may adhere to inflexible approaches, even when faced with evidence that suggests a different course of action is necessary.
- Ignoring Expert Advice: Failing to seek or consider the input of experts or individuals with specialized knowledge relevant to the decision. Disregarding expert advice can lead to uninformed choices that could have benefited from the insights and expertise of others.
Related Article: Understanding Tactical vs Strategic Planning (Plus Examples)
What are the root causes of poor decision-making?
Poor decision-making can stem from various factors, encompassing cognitive biases, emotional influences, and situational constraints. Some of the root causes of poor decision-making include:
1. Cognitive Biases:
Our cognitive biases are mental shortcuts that can lead to inaccurate or irrational judgments. These biases can distort our perception of information and influence our decision-making processes.
Some common cognitive biases that are causes of poor decision-making include:
- Confirmation bias: Tendency to favor information that confirms existing beliefs and disregard contradictory evidence.
- Availability bias: Overestimating the likelihood of events that are easily recalled or frequently encountered.
- Anchoring bias: Excessively relying on the first piece of information encountered (the “anchor”) when making judgments.
2. Emotional Influences:
Our emotions play a significant role in decision-making, but can sometimes lead to irrational choices.
Strong emotions like fear, anxiety, or excitement can cloud our judgment and prevent us from making objective assessments. Emotional biases can manifest in various ways, such as:
- Emotional hijack: Intense emotions can override rational thinking, leading to impulsive decisions.
- Mood-dependent decision-making: Choices can be influenced by our current emotional state, for instance, being more optimistic or risk-averse when feeling happy or sad.
3. Situational Constraints:
External factors can also contribute to poor decision-making. Time pressure, limited information, or lack of resources can hinder our ability to make informed choices. Situational constraints can include:
- Decision fatigue: Mental exhaustion from making numerous decisions can impair judgment and lead to poorer choices.
- Information overload: Too much information can make it difficult to identify relevant details and make sound decisions.
- Stress and pressure: Stressful or pressured situations can impair cognitive function and lead to hasty or ill-considered decisions.
How Do You Become a Good Decision-Maker? | 7 Habits of Good Decision Makers
Becoming a good decision-maker is a journey of continuous learning and improvement.
You need to develop the ability to gather and analyze information effectively, consider diverse perspectives, evaluate options objectively, and make choices that align with long-term goals.
To be a better decision maker, inculcate these 7 habits:
- Seek information from reliable sources: Develop a habit of gathering information from credible sources, such as experts, research studies, and reputable publications.
- Consider multiple perspectives: Actively listen to and consider the viewpoints of others, even if they differ from your own. This can broaden your understanding of the situation and potential solutions.
- Evaluate options objectively: Assess each option rationally, weighing the potential benefits, risks, and consequences. Avoid emotional biases and focus on the facts.
- Weigh potential risks and rewards: Carefully consider the potential trade-offs of each option, balancing the potential benefits against the possible risks and drawbacks.
- Make decisions aligned with long-term goals: Ensure that your decisions align with your overall goals and objectives. Avoid making short-term decisions that may compromise long-term success.
- Learn from mistakes and adapt to new situations: Reflect on past decisions and identify areas for improvement. Use these experiences to make better choices in the future.
- Seek expert advice when appropriate: Consult with experts in relevant fields when faced with complex decisions or when specialized knowledge is required.
How can you improve your ability to make decisions and solve problems?
You can improve your ability to make decisions and solve problems through dedication, practice, and a willingness to learn from both successes and failures.
By adopting these effective strategies below and cultivating a growth mindset, you can tackle challenges with confidence and make informed choices that lead to positive outcomes.
#1. Develop a structured approach to problem-solving
Break down complex problems into smaller, more manageable steps to make them less daunting and easier to address.
#2. Gather relevant information and analyze it effectively
Collect comprehensive information from credible sources, analyze data thoroughly, and identify patterns or trends that may shed light on the problem.
#3. Identify the root cause of the problem
Dig deeper to understand the underlying factors contributing to the problem, rather than just addressing the symptoms.
This will help you find a solution that effectively addresses the core issue.
#4. Generate creative and innovative solutions
Challenge assumptions and explore unconventional approaches to generate a range of potential solutions.
Don’t limit yourself to obvious or traditional options. Assess the feasibility, effectiveness, and potential risks of each solution carefully. Consider the long-term implications and potential unintended consequences.
Also, see this: 6 Simple Steps to Delegation of Authority in Management
FAQs on Become a Better Decision Maker
How can I overcome my fear of making decisions?
One way to overcome your fear of making decisions is to practice making small decisions every day. This will help you build confidence in your ability to make sound choices.
What is the difference between a good decision and a bad decision?
A good decision leads to a positive outcome, while a bad decision leads to a negative outcome.
How can I improve my decision-making skills?
Gathering information, evaluating your options, and learning from your mistakes are notable ways to improve your decision-making skills.
Conclusion
Decision-making is a fundamental aspect of human life, influencing our daily choices and shaping our long-term goals.
While making effective decisions can lead to success, happiness, and personal fulfillment, poor decision-making can have significant negative consequences. Hence, a need to become a better decision-maker.
To get you started on your journey, this article explains factors that influence decision-making, recognizing common pitfalls, and adopting effective strategies that can help you make informed, rational, and impactful choices.
References
- Indeed.com – How To Become a Better Decision-Maker in the Workplace
- Harvard Business Review – How to Make Great Decisions, Quickly
- Very Well Mind – 9 Little Habits That Make You a Better Decision Maker
