Factors That Influence Decision Making

Decision making is a great aspect or part of human life. In our day to day lives, we have to make decisions. Some of these decisions vary in magnitude. Some are viewed as small decisions while others are deemed as significant decisions. The decisions that we make have a significant influence in our lives. That is why the process of decision making is a really an important one in the human life. Some decisions may seem easy to reach at while others are complex. The importance thing, however, is how right the choices we make are and how timely they are. This will greatly determine their impact. Some of the decisions that we make include personal decisions, business related, career decisions, political decisions and decisions on our relationships or love life. The funny thing is that all these decisions are influenced by many factors. The main important thing, however, is for one to be keen before reaching decisions. This is the only way that you can be sure of making decisions that you will not regret in the future. I have discussed below some factors that I feel influence our decision-making process.

Past experiences and Cognitive

Many people tend to use their past experiences in making decisions. They will remember the result of decisions that they made while in certain situations. If the decisions they made then, they will be likely to repeat the decisions. It they were wrong, they will avoid making mistakes that they made then. At times using past experiences may lead us to make bad decisions as some circumstances are not the same always. Experience is not a good influence, especially for business related decisions. People may also use the cognitive bias to influence their decisions. This is when they use certain beliefs and prior knowledge to make their decisions. Many times this knowledge make people omit relevant knowledge and information that point towards risks because they have made particular observations.

Individual Differences

All people are different. They will, therefore, make decisions differently. Factors based on individuals that affect decision making include age and socioeconomic status. It is believed that cognitive abilities depend on age. For the older people, cognitive abilities are significantly reduced. Their decisions are thus impaired. Aged people are also considered to make significant mistakes because of making decisions with great overconfidence. The socioeconomic level will also influence people’s decisions. People on the lower level have little education and resources. This is believed to impair greatly their decisions.

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