Decision Making Strategies

“Do not plan for ventures before finishing what’s at hand”

                                                          By: Euripides

          
       As you know, there are often many solution to a given problem, and the decision maker’s task is the choose one of them. The task of choosing can be as simple or as complex as the importance of the decision warrants, and the number and quality of alternatives can also be adjusted according to importance, time, resources and so on. There are several strategies used for choosing as follows:

1.     Optimizing

This is the strategy of choosing the best possible solution to the problem, discovering as many alternatives as possible and choosing the very best. How thoroughly optimizing can be done is dependent on

-         Importance of the problem

-         Time available for solving it

-         Cost involved with alternative solutions

-         Availability of resources, knowledge

-         Personal psychology, values

Note that the collection of complete information and consideration of all alternatives are seldom possible for most major decisions, so that limitations must be placed on alternatives.

2.     Satisfactory and Satisfying

In this strategy, the first satisfactory alternative is chosen rather than the best alternative. If you are very hungry, you might choose to stop at the first decent looking restaurant in the next town rather than attempting to choose the best restaurant from among all (the optimizing strategy). For many small decisions, such as where to park, what to drink, which pen to use, which tie to wear, and so on, this strategy is perfect.

3.     Maximize the Maximums

This strategy focuses on evaluating and then choosing the alternatives based on their maximum possible payoff. This is sometimes described as the strategy of the optimist, because favorable outcomes and high potentials are the areas of concern. It is a good strategy for use when risk taking is most acceptable, when the go-for-broke philosophy is reigning freely.

4.     Maximize the Minimums

In this strategy, that of the pessimist, the worst possible outcome of each of decision is considered and the decision with the highest minimum is chosen. This orientation is good when the consequences of a failed decision are particularly harmful or undesirable. It concentrates on the salvage value of a decision, or of the guaranteed return of decision. It’s the philosophy behind the saying, “A bird in the hand is worth two is the bush.”

Quiz shows exploit the uncertainty many people feel when the they are not quite sure whether to go with a ‘MAXIMIZE THE MAXIMUMS’ strategy or a ‘MAXIMIZE THE MINIMUM’ one: “Okay, Mrs. Mehta you can now choose to take what you’ve already won and go home, or risk losing it all and find out what’s behind door number three.”

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