Decision Making Skills
Managers must make decisions every day. A good decision is one that selects the best alternative from available options in a timely manner by considering its impact on available resources and stakeholders. Often, however, managers make decisions based on past experiences, intuition, or faulty information, while being unaware of the shortcuts and biases they bring to the process. Managers must be mindful of these processes to mitigate their negative effects. This module on decision making will examine the decision-making process and how decisions are ultimately made. They will examine the cognitive processes involved in decision making, including biases, intuition, association, and judgement. Other topics include information overload, group decision making, decision framing, and System 1/System 2 thinking.
1. Distinguish between the Rational and non-rational models of decision-making
2. Identify the four decision-making styles
3. Understand decision-making heuristics and their impact on business decisions
4. Identify the biases exhibited when making decisions