A decision is simply a choice between two or more items or options. Everyday we make multiple decisions that are quick and simple.
EXAMPLE
You need to decide what you’re going to have for dinner. You begin to think about what your options are: "There's a new recipe I'd like to try, but I have some chicken leftovers in the refrigerator." Very quickly, you go back and forth over the pros and cons of each option:This method of weighing pros and cons is called cost/benefit analysis, an assessment of the benefits gained versus the effort or resources expended in association with the particular option in a decision.
EXAMPLE
We can see this in the small decision of what to cook for dinner: The benefits gained in terms of time outweighed the resources that you’d have to expend.We go through this process of cost/benefit analysis all the time, many times more unconsciously than consciously. However, when we have a big decision to make—something that we consider significant—we give a lot more conscious attention to the range of factors that go into the decision.
IN CONTEXT
You've decided that you need to buy a new car. You check with Consumer Reports, and you start looking at various cars in various price ranges because cost is certainly a factor. In addition to cost, you might look at other factors, such as:
- Safety
- Gas mileage
- Seating
You take all of these physical conditions into consideration. Looking at these logical, rational items helps you to make a decision.
However, you’re probably also weighing other, more emotional factors here:Any of these might end up being the most important factor for somebody in your family in terms of making a decision about a car.
- What kind of a car is this?
- Does it have a sunroof?
- What is my spouse going to think about this?
- Should I look at used cars because of the expense?
- How long do I think the car will last?
- Is it environmentally sound?
- What color is the car?
You will look at this variety of factors and weigh them in terms of the cost/benefit analysis. Chances are that it will take some time to finalize your decision after taking all the factors into consideration.
Source: Adapted from Sophia tutorial by Marlene Johnson.