Decision Making Skills - Definition, Importance & Types
What is Decision Making Skills?
Decision making skills is the ability to understand needs, evaluate comparable options & narrow down to the one best option. Decision making skills focuses on research, collecting & analyzing data and making a correct judgement for effective & efficient end result. In business, this is a critical trait which employees must possess to select the best possible solution for any company problem, for ensuring smooth business processes. Good decision making skills increases efficiency, improves processes & helps grow business revenue.
Importance of Decision Making
Every employee is assigned a different task depending on their job roles & responsibilities. For every task, there are always multiple options for achieving the end result. However, not all options are viable as only some are cost effective, some take a longer time, some require more people etc. This is where the decision making skills of an employee are important. The employee needs to understand the objective, analyze all possible options, evaluate the strengths & weaknesses and take the best decision in the interest of the company.
Effective Decision Making Skills
Some of the most important traits which a person requires to take sound & effective decisions are:
1. Critical Thinking
2. Problem Solving
3. Logical & Analytical Thinking
4. Listening Effectively
5. Leadership
6. Interpersonal Skills
7. Time Management
8. Team Collaboration
For every employee, these are the skills which ensure that every decision is taken in favor of the company.
Types of Decision Making
The ways in which decisions can be made can be of several types. The broad classification of how people can take decisions are:
1. Analytical- This type is based on collecting information, analyzing data & taking a calculated decision.
2. Directive- this is usually based on several processes & rules, and is focused on the end goal.
3. Conceptual- this type of decision making keeps into consideration how other people will be impacted by the decision.
4. Behavioral- this type is driven by the nature, attitude or behavior of a person.
These are simply the broad types of decision making. People need to hone good decision making skills so that they can make the best all available resources & information to take the most ethical as well as profitable decision for the business.
Hence, this concludes the definition of Decision Making Skills along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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