140 Types of Decision Making

John Spacey, updated on August 05, 2024

Decision making is the process of choosing a course of action. The following are common techniques and thought processes that can be used to make decisions. These include approaches for both group and individual decisions.

Decision Analysis

Analysis is the process of breaking things down in order to understand them. In the context of decision analysis, this includes defining a problem statement, decision modeling, identification of options, considering impact, evaluating priority and assessing decision related risks.

Decision Heuristics

Approximations or informal rules of thumb that can be used to guide the decision making process and evaluate options. Heuristics, by definition, aren't accurate calculations but are pragmatic estimates that give you a rough approximation of something. These can also include general rules that you apply to try to make somewhat rational choices such as avoiding options that are untested.

Quantitative Decision Making

Decisions that use reasonably accurate calculations, probabilities, estimates or forecasts. This includes optimization, experiments and other numerical techniques such as statistical analysis or benchmarking. In some cases, quantitative decision making is automated or based on a tool such as analytics that provides decision support.

Qualitative Decision Making

Decision making based on the complex cognitive capabilities of humans such as concept development, analogies and moral reasoning. This is required to deal with things like strategy that can involve a large number of unknowns such that a number doesn't always help. Qualitative judgement is also required to deal with decisions that involve human values and culture.

Participative Decision Making

The process of involving multiple people in a decision. This can include people who are consulted about a decision who have no authority to make the decision. In cases where multiple stakeholders have authority over the same decision, the result is likely to be sub-optimal due to the processes of social compromise and competition that are likely to shape the decision. However, this is often necessary in order to achieve support for a decision that affects many parties.

Strategic Decision Making

The process of generating and choosing from strategic options. Strategies are plans for the future that typically involve much uncertainty. This area has a rich set of decision approaches and development techniques as follows.

Personal Decision Making

Techniques that can be used to make personal decisions. This includes using different frames of mind to deal with different parts of the decision making process. Generally this means generating ideas with optimism, evaluating them with pessimism and shaping the final decision with pragmatism.