Decision Making

820 Words Apr 3rd, 2011 4 Pages
Question 1: Which biases in decision making can be identified in the performances of both Pieterson and Gack? How can the identified biases be overcome?

In general, the decision making style for manager approach decision making is toward rational and intuitive thinking. In rational thinking a person consider the problem in a rational, step-by-step and analytical way. Rational thinking person will resolve a complex and complicated problem into smaller part and then resolve them in a rational, logical and integrated method. Another way of decision making style which is intuitive thinking is more flexible, spontaneous and creative. Intuitive thinking person will respond to a problem quickly and gone through evaluation and come out with
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Thus, information and information systems are useful for John to overcome his bias in decision making. Information systems which have essential characteristics to support John’s works are timeliness and completeness. This both characteristic of information systems make sure the information that John needed is available when he need and meets deadlines for decision making. Furthermore, completeness in information is complete and sufficient for the task at hand and up to date as possible.

Jack Gack has the biases escalating commitment because he is intuitively continue a course of action that is not working. According to this heuristic, people will unable to decide to quit and let the momentum of situation overwhelm them. The evidence here is Jack Gack performs the same duties as John Pieterson but Jack is not very success in Steel Inc branch at Finland. Jack did make rational decision but he also includes a share of intuition in his decision making. Jack is not willing to go of his intuition although he is often criticized and he believes that external factors had affected his bad performance. From the point of view from Jack, he believes his unsuccessful is because of the external factors and he does not want to let go of his intuition during the decision making. He is fall into escalating commitment which is the continuation of an action even though it is not working. Therefore, Jack should not limit himself to just one
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