All 1 entries tagged Decision
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March 06, 2016
Sometime we think we know something, but actually we don't. Sometimes we believe we had made a good decision but actually we haven't. Most of the times many people come up with quick answers, with the assumption that it was a right decision. According to research humans have two system which help them to make decisions. One is system one and another is system two. System one come up with faster answer, these answers are normally based on judgements, rumours or past experiences. This system most of the times overlook the tiny details of question and directly jumps to answer, which is often. Reason for wrong answer is that apparently question looks different but if details are understood that means something else and so is answer different. This system of thinking doesn't involve any process of thinking and concludes very quickly. System two uses a systematic way to reach answer, it starts to answer the question by applying some systematic model to question to fit in and develops answer with reason and justification. In this case chances of missing minor details are low and probability of making right decision is high. But people who are not habitual of using this process of decision making they normally don't use this system and rely mostly on system one.
Sometimes somethings seems simple, but they ain't. And sometimes too much time i spent on simple decision. Both systems can't be used all the time. Choosing which system to choose at which time depends on the circumstances. If circumstances require quick decision for example in case of disaster, unexpected emergency then using system two can waste time, because in such circumstances time is key to have impact. Greater the time it will take to respond, greater the impact will be. So for such circumstances system one is the most appropriate way of making decision. But in case where lot of factors are involved in decision making like making the decision to expand in particular market or not. In such circumstances there are lot factors which need to be analysed before reaching conclusion. In order to analyse different information's different business models can be used as a frame work to interpret the information and make a sensible meaning out of it. By using business models bigger picture is understood and after taking input from various business models a decision is made, with support of all the calculations. If in beginning, a right way of decision system have been selected for right circumstances then chances of making right decisions are also high.