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The Role of Religion in Decision Making
"Religion,Yoga, Meditation do these play any role in correct decision making?
Our religions preach many virtues which are age old and long lasting. They are playing a vital role in many people's lives.
- Do they also impact our decision making ability or capability?
- Should they? Or do atheists have an advantage of being unbiased when they're making decisions?" |
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The Role of Opinions in Decision-making
"Opinions play a major role in decision making in the absence of sufficient management information and lack of analytic skills.
Although modern management tools emphasize that management information is very important in rational decision making, such decision making is not always possible.
There are instances where decision making is purely based on opinions held by the decision maker. Because on one hand analyzing management information takes a long time, and on the other hand the situation demands a quick decision.
There are occasions in which a serious turn of opinion takes place with a sudden inflow of new information and knowledge. This is possible only for people who spend quite a lot of time in thinking about the subject matter involved, and are looking for new knowledge." |
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What Makes a Manager Into a Good Decision-maker? 10 Traits for Decision Making
"Decision making is vital in our life, be it workplace or home. My long experience in industry and thirty years of marriage say decision making needs the following traits in a 'manager':
1. Knowledge (of the background, organizational goals)
2. Sincerity: to want to make a sound decision
3. Time consciousness
4. Cost effective
5. Steadfastness: duty bound
6. Good listener
7. Positive attitude
8. Participative: offer opportunity to team members to make suggestions
9. Team spirit
10. Confident." |
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Being Afraid of Making Decisions
"In my experience I have found that some people can take a negative approach to decision making and are guided by more by the fear of failure rather than the higher margin of success.
An outcome is almost ever measured against "doing nothing" and I think that some managers value their reputation more than the higher degree of succes." |
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Conscious and Unconscious Decision-making
"A decision is a neurological process taken individually or with cyberbrain that results in an action. The decision and hence actions can be taken consciously or unconsciously and the majority of actions are taken unconsciously.
These unconscious decisions and actions can be a result of:
- Evolutionary processes (involving emotions), or of
- Training whereby they are "ingrained".
- Corporate values can guide the unconscious actions if they are part of the corporate "DNA".
Conscious decisions could override unconscious ones. Without a neurological model, the understanding of decision making is limited." |
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Decision-making According to Peter Drucker
"Definition of a Decision
A decision is a choice whereby a person performs a conclusion about a situation. This represents a course of behavior about what must or what must not be done. It is the point at which plans, policies and objectives are translated into concrete actions. Planning leads to decisions guided by company policy and objectives and implies the selection from alternative objectives, policies, procedures and programmes.
The purpose of decision-making
With decision-making we try to direct human behavior towards a future goal. If there were no alternatives, there would be no need for a decision.
Types of Decision-making
Drucker distinguishes between:
- Tactical decisions and strategic decisions. Strategy can be defined as the behavior of management in trying to achieve success for company goals in an environment of competition. It is based upon the action, or possible action of others. Strategies are solely calculated to implement plans and objectives, bearing in mind all manner of uncertainties, so that an advantageous position is attained over an opponent.
‘Tactical’ decisions are made by management and involve ‘either finding out what the resources are, or what they should be’. These include decisions upon basic objectives and may affect the productivity, organization or operation of the business.
- Organizational decisions and personal decisions. Organizational decisions are those made in the role on an official of the company and reflect company policy.
Personal decisions refer to those made by a manager as an individual and cannot be delegated.
- Basic decisions and routine decisions. Basic decisions are long-range in scope e.g. the location of a factory in development area, or deciding what product to make. Wrong decisions on these matters can be costly. Routine decisions are those which are made repetitively and need little thought.
The process of decision making.
For a proper decision to be reached the following steps must be followed:
• Define the problem to solved
• Find alternative solutions
• Analyse and compare these alternatives
• Select the plan to be followed noting relevant factors
• Make the decision effective – by taking action to put the decision into effect
Influences on Decision-making
It should be noted that, whatever decision criteria are chosen, decisions are affected by:
• The importance of the decision;
• Characteristics of the organization;
• The personality of the decision maker
• His/her state of mind when making the decision" |
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Avoid 3 Common Decision-traps
"Making decisions is your most critical job as a leader. The more high-stakes a decision is, the more likely you are to get stuck. Here's how to avoid three of the most common traps:
1. Anchoring Bias. Many people give disproportionate weight to the first information they receive. Be sure to pursue other lines of thinking, even if the first one seems right.
2. Status Quo Bias. Change can be unsettling and it's easy to favor alternatives that keep things the same. Ask yourself if the status quo truly serves your objectives and downplay the urge to stay in your current state.
3. Confirming Evidence Bias. If you find that new information continually validates your existing point of view, ask a respected colleague to argue against your perspective. Also try to avoid working with people who always agree with you (HBR)." |
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Avoid Hasty Decision-making
"Life itself is the ultimate school for making decisions. We make them constantly when faced with any situation.
However, we need not be hasty about making them (although some are required on the spot), we need to deliberate, gather sufficient information on the situation at hand so that your decision can reflect your convictions and beliefs on the subject." |
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Individual vs Organizational DM
"You should distinguish between two basic levels (or types) of decision-making when studying the above decision-making method and theories:
1. Individual decision-making - Historically viewed as a relative simple, linear, somewhat rational activity by a well informed individual decision maker.
2. Organizational decision-making - Historically viewed as a relative complex, non-linear, irrational activity by a limited informed group." |
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Decision-making Reviews?
"Jerome Groopman says it's about time that managers make themselves more vulnerable by organizing formal decision-making reviews when a poor decision has been made, or when a particularly important decision will have to be made. There is no reason to be scared, since Tversky and Kahneman have demonstrated that there are many shortcuts in human thinking due to Cognitive Biases such as anchoring errors, availability errors and attribution errors. By making themselves more vulnerable, in medicine, senior doctors have begun to encourage those further down in the hierarchy to question decisions more freely, to think more broadly and to challenge their leaders on important decisions. Senior Managers should be open for the same. (source: HBR Feb 2008, p 19-20)." |
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Looking for old values video
"I remember a video that was titled something like "You Are Who You Were When." It had to do with the differences of values between various generations, based upon what was going on when they were growing up. Anyone know where I can find it? For some reason I think Jerry B. Harvey was the lecturer, but perhaps not. Thanks for your help." |
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Rational Decision-making or Gut Feeling?
"I don't believe in any rational decision-making methods for managers. The complexity of most management decisions is big, and the circumstances change quickly. So many executives prefer the 'Gut Feeling approach'. Even if we want to be rational, our rationality is influenced by multiple Cognitive Biases. And when we're working in teams the situations gets worse due to Groupthink etc. So forget about rational decision-making models." |
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