Rational Decision Making

In: Business and Management

Submitted By Alincess
Words 552
Pages 3
Decision making: intuition vs ability

Some people have an advantage in decision making but it does not mean that they are talented. Special management theories and experience are mainly important. However, having knowledge is not enough. Great leader must be able to apply knowledge in business and life. Ahmed Sharawy (2013) pondered about reasons of advantages some people to another in making decisions. He claimed that be smart in decision making does not mean be special and extraordinary but be well developed and skilled. According to his article, in addition to respectable theories good leader must study on his own mistakes and failures to be enough experienced and be able to turn decision making into spontaneous process, excluding using intuition only. Another important point is that when probabilities get complicated, choosing the best decision becomes to be a difficult process and outcomes can be irrational. In such situations, regression models lead to more direct solutions. However, such models make decision making process absolutely systematic, reducing creativity. Author also describes “prospect theory”, according to which people look for more risks under negative effects and try to avoid it when they are positive. Moreover, he writes that businessmen must check their decisions before acting them. Sharawy describes research, which shown that decision makers sometimes deteriorating their performance and it is important to match decision making with groups or different individuals. Finally, author writes that all projects must be well planned.

One of the main concepts in our topic is Rationality and making rational decisions. “Rational decision making is a multi-step process, from problem identification through solution, for making logically sound decisions. The process favors logic, objectivity, and analysis over subjectivity and…...

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