SBenegaL

Category: Decision Making

  • Decision Making – influence of Brain Characteristics

    In the last byte, we looked at the Z-model of decision making. In today’s byte, we look at some characteristics of the brain that influence decision making.

    Numerous individual differences affect a manager’s decision making of these, the manager’s preference of logic or creativity influence most of the decisions that the individual makes. This difference of preference for logic or creativity has its origin from the individual’s brains.

    Human brain has two lateral halves – the right and the left. The right hemisphere is responsible for creative functions while the left hemisphere is responsible for logic, detail and planning.

    Clearly, each of these thinking comes with its own advantage and the best situation is to be “brain-lateral”, i.e. to use either logic or creativity or both based on the situation one gets in.  There are ways by which one could develop either side of the brain which one is not accustomed to using.

    For a manager, it is important to visualize the big picture – put a vision and plan strategically (predominantly right brain) and at the same time should be able to understand day-to-day operations and flow of work (predominantly left brain)
     
    It would be interesting to discuss the two dimensions of intuition and creativity and we shall continue that in the next few bytes.

  • Z Problem Solving Mode 2

    In the last byte, we had a look at the diagrammatic representation of the Z-model of decision making. In today’s byte, we look at in detail.

    According to the Z model of decision making, a good problem solving model should have the following 4 steps:

    1. Examine the facts and details
    2. Generate Alternatives
    3. Analyze the alternatives objectively
    4. Weight the impact
    In the first stage when we are examining the facts and details it is the sensing style that takes predominance and helps gather information about the problem. In the second stage, it is the intuiting style that could play a major role in developing the possibilities. In the third stage, it is the thinking that would drive the decision maker determine the effect of each alternative. The final stage uses the feeling dimension predominantly to determine how the people involved will be affected.

  • Z Problem Solving Mode

    In the last byte we looked at the intuition based decision making process. In today’s byte we shall begin our discussion on the Z Problem Solving Model.

    We could summarize the Z-problem solving model in the following diagram. We shall discuss about this in the next byte.




    Ref: The diagram has been adapted from the reference book on organizational behavior that we follow.

  • Risk Aversion

    In the last byte, we looked at the various models of decision making. In today’s byte, we look at the concept of risk aversion.

    Risk Aversion refers to the tendency to choose options that possess fewer risks and less uncertainty.

    Individuals differ in their capacity to handle uncertainty and take risks. Some choose fewer risks and prefer familiarity and certainty while others prefer to take greater risks – they accept the loss in decisions and are willing to take more uncertainty.

    Risk taking could be an extremely individualistic behavior, but it is also influences by organizational factors – If an upper-level manager could be discouraging of risk taking then the creativity and innovation could suffer. What is important tough, is that the company/organization should have a consistent attitude towards risk and not fluctuate.

    Losses are bound to occur when one takes risk – however the key is not to throw the good money after the bad due to commitment – we shall discuss this in the next byte.