Decision making management: Fully reflected decisions against quick and reflexive actions in decision making
- Implications of logical and rational models
- Escalation of commitment and illusion of control
- Method for developing good decision
Any human activity calls for making decisions, which can be defined as a commitment to a course of action. The result of making decisions is the selection of an alternative over others. The process involves discovery, acquisition and combination of relevant information.
People have different styles of decision making that are reflected in how they identify problems or opportunities and make choices. This will directly affect the quality of the decision and its promptness.
The following discussion will cover the benefits and downfalls of fully reflected decisions against quick and reflexive actions in decision making.
In understanding the drivers behind decision making, it must be born in mind the capabilities of the human being are restricted by its perception of the environment and by its cognitive limitations.
[...] The result is a limitation of the scope and variables in the decision process; all consequences are inevitably not considered. - In the decision making process, people anticipate the consequences of their actions, but they do not assess to what degree these consequences connect to their values. People's values evolve and change over their life. Decision makers tend to over value their favoured alternative by denying value tradeoffs. Overconfidence in forecast of outcome can lead to poor results (Schwenk 1984). [...]
[...] Goodwin, P 2009, ?Common sense and hard decision analysis: why might they conflict?', Management decision, vol no pp. 427-440. Hartmann, LC & Patrickson, M 1998, ?Individual decision making: implications for decision training in TQM', International Journal of Quality & reliability Management, vol no pp. 619-633. Newell, BR, Lagnado, DA & Shanks, DR 2007, Straight choices: the psychology of decision making, Psychology Press, Hove, UK. Nutt, PC 2008, ?Investigating the success of decision making processes', Journal of Management Studies, vol no pp. 425-455. Schwarber, PD 2005, ?Leaders and the decision [...]