Decision-making techniques can apply to almost every major as we all have understood so far. Usually companies are the places which decision-making tools are used widely. Having that in mind, let's think about the economic crisis that started a few years ago.
We all expected that companies, and basically people working on them, have an understanding of how to make decisions that benefit various aspects. However, what happened in reality is that these people probably used bad decision making and poor judgment. If we add the parameter of ethics, meaning if they made ethical or unethical decisions, and the different kind of biases we can find one source of that economic crisis.
I know that many of you might disagree with my thinking about the economic crisis, and if I take into account my experience in economics I'm pretty sure that I will come up with multiple reasons for the crisis. But, since we keep acquiring new knowledge in this masters, it is worth considering other variables as well. Thus, I believe that apart from economic reasons that led to the crisis, a substantial element lies in the way that people make decisions and the biases behind it.
Yes, I think bias in decision making is an important factor to take into account, I also think that it’s very important for the finger to be kept on the pulse and, sadly, this is not what has happened.
08 Mar 2012, 16:45
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