Types of Decisions
Although the study of decision making has spawned a plethora of books and other resources devoted to how to make better decisions, there are only three distinct types of decisions:
- Decisions “Whether” – These are decisions in which the answer is the decision “whether” to take an action or not. The answer is either a Yes or a No. This decision type is simple in theory although the actual process of deciding can be difficult and complicated. The Ben Franklin Ledger is a useful tool to use in “Whether” decisions.
- Example: Should I look for another job?
- Here are a few more examples of difficult “Whether” decisions:
- Whether our country should go to war or not.
- Whether I should go to college or not.
- Whether I should move to California or not.
- Decisions “Which” – These decisions require you to choose from a group of options. This type of decision is the most common and the one most discussed in books and other decision making literature. There are a number of tools and processes available to help in evaluating the options in “Which” type decisions. The Criteria Table and Weighted Criteria Table are useful tools to use in “Which” decisions.
- Here are some examples of “Which” decisions:
- Which of the three job offers should I accept?
- Which college should I attend?
- Which career should I choose?
- Here are some examples of “Which” decisions:
- “Contingent Decisions” – These are decisions already made but on hold pending the occurrence of certain events. These decisions can be very powerful because the person making the decision can “pre-decide” what he will do in the event those events occur. The benefit is that there is sufficient time to carefully consider the decision and the risk of making a poor decision in the moment is eliminated. This type of decision is used extensively in the military, for example in how to respond in the event of an enemy attack, and in medicine, for example in how the medical staff should respond to a Code Blue emergency.
- Here are some examples:
- I will take the job if they offer me $20 per hour.
- I will buy the house if I can purchase it for $250,000 or less.
- I will go to the University of California if I am accepted.
- Here are some examples:
In making a Wise Decision it is helpful in structuring the process to first determine what type of decision you will be making.