By POKAMOM payday loan
How do effective managers make decisions? We like to see ourselves as rational, as able to weigh hard facts objectively in order to make sound decisions. The reality is that our decisions are highly influenced by subjective preferences, biases and unconscious drives.
Often, when we think we are making rational decisons, we are really just rationalizing decisions made for non-rational, if not irrational reasons. Our ability to make sound decisions is hampered by a number of factors other than our subjective preferences and feelings. We feel that we should be self-reliant and we value our independence.
This motivates us to think for ourselves and use our own view of the facts to make decisions. By not consulting others or asking for advice, we severely limit ourselves, both because we may lack much of the needed information but also because we are immersed in our own feelings and emotional needs.
In addition, decisions are often hard to make simply because there is too much that is unknown. It is not as well known as it should be that we often stumble upon a solution and then kid ourselves that we made a rational decision. That is, a lot of decisions are like deciding whether you like a certain kind of unfamiliar food. Such a decision is a matter of discovery, not of rationally weighing evidence before acting.
In other words, we often need to try things and discover the best course of action. This is how entrepreneurs behave. A famous story of such backward decision making is how Honda decided to make and sell small motor scooters in California. They first went out there to sell large motorbikes but the executives round around on small scooters. Because they got so many questions about the scooters, they decided to sell them in the first instance instead of the larger bikes.
Emotional intelligence can help us make sound decisions because it means being aware of how our emotions influence our actions. This can help us to avoid our subjective preferences and biases to some extent. It can also help us realize when we are simply rationalizing a preference rather than taking a fully balanced view of a problem or situation.
Consulting other people or a wide range of sources can also help. Reading reviews of a product and asking for recommendations can both lead to better buying decisions for example. In business, the value of benchmarking is that we can adopt the best practices that others have proven to work.
Overly independent managers who think that the "buck stops here" and that they need to make all the key decisions on their own are more likely than others to make a number of bad decisions.
Also, recognizing that some decisions need to be discovered can help. For instance, you can't decide exactly what kind of house you would like to buy until you start looking at some. You will have a general idea of what you want but you might revise your criteria significantly when you see features you like but hadn't thought of in advance. Making career decisions also works by discovery, by trying out various kinds of work or by talking to people doing jobs that seem interesting. It is like window shopping. You decide what to buy when you discover something you like.
You can't totally control this kind of decision. It is not as simple as deciding where to go on vacation. The best you can do, when there are so many unknowns, is to put yourself in front of a number of likely options to see if something clicks for you.
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