Business Decision Making
Abstract
Contemporary managers are constantly faced with business-related decisions. However, the making of such decisions in the real world is often unstructured. The term ‘rational decision making’ epitomises the confusion and widely varying interpretations surrounding this phenomenon. A process-oriented approach may, therefore, seem different from traditional ways of arriving at a choice. Nevertheless, the benefits of adopting such an approach are significant, and its use seems certain to improve managerial decision making in organisations. The purpose of this essay is to discuss how a managerial decision maker’s rationality may be impacted by perceptual processes. Several perceptual errors such as stereotyping, perceptual defence and halo effect will be examined. In addition, it is also suggested that unethical decisions may be linked to errors in perception. This essay concludes with the discussion on the notion of rationality and the part it plays in linking perceptual processes with decision making. Despite its detractors, the notion of rationality should subsist as an exemplary model acting as a guide for managers in making sound decisions.
‘Influence of rationality and perceptual processes on managerial decision making’
Managerial decision making and rationality are impacted and influenced by perceptual processes. This essay seeks to critically analyse and discuss perceptual processes as pivotal in any decision making endeavour. Its importance are briefly discussed with particular emphasis placed on ways in which certain differences or biases in perception may have on individuals’ understanding of reality as well as how it impinges on the decision making process within a business environment where there are numerous variables. Furthermore, this essay looks at what happens when there are perceptual errors in decision making within the business sphere. It also addresses the notion of rationality and its conflicting attainability with its application
Contemporary managers are constantly faced with business-related decisions. However, the making of such decisions in the real world is often unstructured. The term ‘rational decision making’ epitomises the confusion and widely varying interpretations surrounding this phenomenon. A process-oriented approach may, therefore, seem different from traditional ways of arriving at a choice. Nevertheless, the benefits of adopting such an approach are significant, and its use seems certain to improve managerial decision making in organisations. The purpose of this essay is to discuss how a managerial decision maker’s rationality may be impacted by perceptual processes. Several perceptual errors such as stereotyping, perceptual defence and halo effect will be examined. In addition, it is also suggested that unethical decisions may be linked to errors in perception. This essay concludes with the discussion on the notion of rationality and the part it plays in linking perceptual processes with decision making. Despite its detractors, the notion of rationality should subsist as an exemplary model acting as a guide for managers in making sound decisions.
‘Influence of rationality and perceptual processes on managerial decision making’
Managerial decision making and rationality are impacted and influenced by perceptual processes. This essay seeks to critically analyse and discuss perceptual processes as pivotal in any decision making endeavour. Its importance are briefly discussed with particular emphasis placed on ways in which certain differences or biases in perception may have on individuals’ understanding of reality as well as how it impinges on the decision making process within a business environment where there are numerous variables. Furthermore, this essay looks at what happens when there are perceptual errors in decision making within the business sphere. It also addresses the notion of rationality and its conflicting attainability with its application