Decision-Making Styles
-3 Minute Read
Different decisions require different approaches. While people tend to have preferred styles for making decisions, those styles may not always fit every situation. It is important to adapt our decision-making approach based on the type of decision, its characteristics, and the environment. Here are several decision-making styles and when they are best used:
Analytical Decision-Making
This style involves a methodical approach where data is gathered, analysed, and weighed against potential outcomes before making a decision.
Best for complex problems where data is accessible and the stakes are high, such as financial investments or strategic business planning.
Actions of this style: Collecting extensive data, performing statistical analysis, using decision models, and projecting outcomes based on factual data.
Intuitive Decision-Making
Decisions are made based on gut feelings, instincts, and personal experiences rather than formal analysis.
Effective in high-pressure environments or when swift decisions are needed, such as during emergencies or in fast-paced business sectors like stock trading.
Actions of this style: Making quick decisions, relying on past experiences, and responding to immediate needs without extensive deliberation.
Conceptual Decision-Making
This style involves thinking creatively and considering a wide range of potential solutions to find innovative outcomes.
Ideal for new product development, marketing strategies, or any scenario where innovation is crucial.
Actions of this style: Brainstorming, engaging in creative thinking exercises, looking at problems from multiple perspectives, and considering long-term implications.
Directive Decision-Making
Focuses on quick, decisive action using a limited amount of information and considering few alternatives.
Best used in situations requiring immediate action or when the leader has significantly more expertise or information than others, such as crisis management or military operations.
Actions of this style: Making fast decisions, issuing direct commands, and using a command-and-control approach.
Behavioural Decision-Making
This style prioritises the human element, considering the impacts on team morale and seeking input from others to reach a consensus.
Useful in management, HR issues, or any decision involving group dynamics and employee satisfaction.
Actions of this style: Conducting meetings to gather opinions, striving for consensus, considering emotional impacts, and communicating decisions transparently.
Reasoned Decision-Making
Involves a logical and structured approach, where options are weighed against a set of predefined criteria.
Effective for policy-making, regulatory decisions, or any environment where fairness and objectivity are paramount.
Actions of this style: Defining clear criteria, using scoring systems, applying weighted decision matrices, and documenting reasoning processes.
Participative Decision-Making
Encourages input and involvement from all stakeholders to build consensus and shared commitment to decisions.
Best for team-based environments, community planning, or organisational changes where buy-in is crucial.
Actions of this style: Facilitating workshops, conducting surveys, involving teams in decision discussions, and using collaborative tools.
Incremental Decision-Making
Decisions are made in small, manageable steps, allowing for adjustments as more information becomes available or as situations evolve.
Suited to uncertain environments, long-term projects, or when flexibility is needed, such as in software development or urban planning.
Actions of this style: Making partial decisions, regularly reviewing and adjusting plans, and responding to feedback.
Avoidant Decision-Making
Characterised by delaying or avoiding decision-making, often due to uncertainty or risk aversion.
Sometimes prudent in high-risk scenarios where no good options are apparent or when waiting may lead to better choices.
Actions of this style: Postponing decisions, seeking more information, and sometimes delegating or deferring decision authority.
Satisficing Decision-Making
Involves choosing the first option that meets a minimum acceptable threshold, rather than optimising for the best possible solution.
Effective when time constraints exist or when the impact of decisions is low, such as minor operational decisions or when resources are limited.
Actions of this style: Setting minimum criteria, quickly assessing options to find the first acceptable solution, and moving forward without exhaustive comparisons.
Dependent Decision-Making
Relies on guidance, recommendations, or decisions made by others, often due to a lack of expertise or confidence.
Appropriate in hierarchical organisations where decisions are often escalated or for individuals in training roles.
Actions of this style: Consulting superiors or experts, following established guidelines or protocols, and often seeking approval before acting.
Autocratic Decision-Making
Decisions are made unilaterally by a single decision-maker without external input or collaboration.
Necessary during emergencies, when decisions need to be made quickly, or when the decision-maker has the most knowledge about the situation.
Actions of this style: Making quick, firm decisions, often under pressure, and communicating directives clearly to subordinates.
Each decision-making style has benefits and drawbacks. What is important is that we are aware of the modes we favour and consciously select the most appropriate style based on the specific situation.
Trevor O'Sullivan
General Manager. Since the early 2000s, Trevor has worked with thousands of Talent Management professionals to develop and apply assessment-based talent management solutions for selecting, developing and managing people. Trevor is an active member of the TTI Success Insights (TTISI) Global Advisory Council, contributes to TTISI product development and is a regular presenter at TTISI-R3. He is honoured to have received multiple Blue Diamond Awards and, more recently, the Bill Brooks Impact Award recognising his contributions to the TTISI global network.
We Would Like to Hear From You (0 Comments)