Is it that DFSORT can be used only in Z/OS? If yes , what is the SORT utility we use for OS/390 .
DFSORT can be used for z/OS and OS/390.
z/OS DFSORT V1R5 is used for z/OS V1R5 and above.
DFSORT R14 is used for z/OS V1R4 and below (including OS/390).
How do we decide whether to use SYNCSORT or DFSORT . ? Do we have a choice
Your site chooses which product (DFSORT or Syncsort) to license and install, so that's the one you use. Generally each site only has one of the products. However, some sites have both products available. In that case, one product is installed as the primary product and would be invoked automatically. The other product can only be invoked by using a JOBLIB or STEPLIB with the libraries where the product was installed (your System Programmer would be able to tell you if both products are installed and what libraries to use to get to the secondary product).