decision-making

Choosing between two or more alternative courses of action. There are several different decision models, including decision trees, discounted cash flow, and critical path analysis.

Decision-making can be subjective or objective. In objective decision-making, decision models are used in an attempt to eliminate bias or hunch, and to ensure a decision meets the objectives of the organization. Subjective decision-making involves choosing an action that produces the best possible outcome based on the individual's preferences, prejudices, and other subjective factors. For example, in a business an individual might decide to produce a new product in red because they like the colour. An objective decision would involve the statistical analysis of relevant market research and other investigations as to the relative cost of different colours.