Decision Making

For students, decisions are the hardest things to make. Especially when they have to choose between what they want to be and where they should be. No doubt, decision making is a multi-factorial phenomenon. In other words, it relies on several variables, and environment is a very prominent factor/ variable among all. Students who do not know about the importance of decision-making environment analysis suffer greatly. Wrong decisions sometimes have irreversible consequences. Therefore, graduates must know about different types of decision-making environments to make effective decisions. This article will first discuss the effect of the environment on making decisions. It will then discuss three types of decision-making environments and end on a few simple tips to create a positive decision-making environment. 

How Does The Environment Affect Our Decision Making?

By definition, the environment is the surrounding in which all biotic, as well as abiotic factors live or co-exist. At the same time, decision making is the characteristic of living beings to distinguish between the wrong or right or to decide what to do. Humans are used to making decisions influenced by their modes, associations and other behavioural aspects. Furthermore, the underlying driving factor of all these behavioural aspects includes the environment. Hence, the environment has a deep impression on the decision making of humans.

In 2017, Lisa A. Schwartz, along with his colleagues at Wingate University in North Carolina, tried to give experimental proof for the connection between decision making and environment. In this experimental illustration, they divide the randomly selected individual into two rooms. In room number one, they created a stressful environment, and in other, the environment was kept relaxed. After some time, the participants of both rooms were asked to complete a questionnaire. The statistical analysis of this questionnaire proved that the decisions of the individual of room 1 were less creative and more rational.

In contrast, decisions or answers of the room 2 participants were more creative and less rational. These results were supported by Kahneman’s Ease Cognitive and Cognitive Strain theories. Hence, in the light of findings of this study, we can say that the relaxed environment helps us in making creative and intuitive decisions. In contrast, the stressful environment helps in making rational decisions. For example, if a student has to write his dissertation and he is in a bit of stress. If stress is heavy then there are more chances that he will not be able to complete it timely. However, if his stress is normal, he can hire dissertation writing services to get his dissertation written by an expert. This is how the environment affects our decisions.

What Are The 3 Types Of Decision-Making Environments?

Decision making is an important aspect to manage daily life affairs. Whether you are a student, manager or even a counsellor, effective decision-making abilities are important for all. Decision making is the main ingredient to drive a business in the right direction. As discussed earlier, the decision-making environment is important as it helps us in recognising the scenario we face. In general, there are only three types of decision-making environments. Furthermore, almost all situations fall under these three types. Let us briefly explore these environments.

Type #1 Certainty

Decision making under certainty is one of the safest decision-making environments. In other words, it is the least risky among all. In such environments, we do not have many possibilities and paths to follow. Moreover, all the information one may need is readily available in this type. Here, all variables are clear, and usually, it does not contain any underlying hidden factor that may affect the decision.    

Type #2 Uncertainty

Decision making under uncertainty is quite the opposite of the previous one. Here, the decision-maker does not have all the necessary information for making a decision. The variables are unclear, and the risk of making a wrong decision remains at its peak. In many cases, under this environment, we do not have a well-defined path to follow. Furthermore, the chances of making a biased decision in this type are also very high.

Type #3 Risk

Decision making under risk is the last type of decision-making environment. This environment often imposes a complex situation when multiple events are tied with a single decision. In this type, even after the decision making, we are not sure about the possible outcomes of decisions. Instead of gathering data and analyse it, in this type, we make decisions based on calculated guesses. The consequences of such a decision may be extreme (either successful or disastrous). In short, the probability of risk is the highest in this decision making environment.

How Do You Create A Positive Decision-Making Environment?

The environment is an important decision-affecting factor. It helps us recognise our responses to specific scenarios, which in turn generalise our actions. We make many decisions in different environmental conditions within a single day. Still, the experts divide the decision-making environment into a few categories. Therefore, by knowing the effects of the environment on decision making, one can make more effective decisions.

A positive decision-making environment is one that allows a person to analyse the situation in the shortest possible time. It further allows us to immediately brainstorm the strategy and then suggest an opinion. Moreover, the positive environment is the one that allows decision-makers to review all pros and cons the decision may result in the future. In daily routine, there are almost a dozen of situations that do not let individuals create a positive environment to follow all steps of making a good decision. Therefore, below are some tips that will help all of you in creating a positive decision-making environment:

  1. Do not let worries get on your nerve
  2. Analyse pros and cons in the shortest possible time
  3. Spend time for mental and physical relaxation 
  4. Do not make decisions when feeling stressed
  5. Use mind maps in making good decisions

After a detailed discussion on the connection between the environment and decision making, we can say that individuals must keep the effect of the environment in mind while making a decision. Three broadly defined decision-making environments help them in considering the situation. Moreover, in all types, the complexity of the situation has different levels. In the light of the features of each type of environment, a student can create a positive scenario to make an effective decision. Lastly, never let your sentiments affect your decisions. Always follow the steps of the proper decision-making process to excel in every field.

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