Decision Making

Decision Making

1. Making decisions is the most important job of any executive. It’s also the toughest and the riskies

2. A research revealed that we use unconscious routines to cope with the complexity inherent in most decisions

   • Researchers have identified a whole series of such flaws in the way we think in making decisions
     • heuristic are sensory misperceptions
     • others take the form of biases.
     • Others appear simply as irrational anomalies in our thinking
     • What makes all these traps so dangerous is their invisibility.
       • managers who are aware of the dangers of anchors can reduce their impact by using the following techniques
         • Always view a problem from different perspectives.
         • Think about the problem on your own before consulting others in order to avoid becoming anchored by their ideas.
         • Be open minded
         • Be careful to avoid anchoring your advisers,
         • Be particularly wary of anchors in negotiations

3. Decision makers display a strong bias toward alternatives that perpetuate the status quo.

4. Team Beer#1 Roxana André María Garcia Lucia Latapí Lisa Fischer

5. Biography: Harvard Bussiness Review "The Hidden Traps in Decision Making" John S. Hammond, Ralph L. Keeney, and Howard Raiffa