How to make Good Decisions in Business or something like that Essay

How to make Good Decisions in Business or something like that - Essay Example The need to take action in time is testing the limits of the command-and-control model that has subjugated commercial and military leadership for generations. To maintain a bias for action and stay centered on the appropriate goals both realms are coalescing around and emerging leadership model that rebalances traditional attitudes toward two crucial decision factors: risk and control. (Garvin, 108-116) In the corporate world today, decision makers need to have a higher tolerance for, and comfort level with risk. Multi month task forces are the buggy whips of leadership. Today, failure to decide and act quickly can pre-empt options altogether. However, business decisions are frequently made on input information that are either biased or manipulated. Input bias is defined as the systematic misuse of input information in judgments of outcome quality. While researchers note that the quality of a decision is often "positively related" to the quantity of the inputs used to make that decision, the relationship between input quantity and output quality is not automatic. In many cases, inputs are misused, misrepresented or even negatively related to outcome quality. a) Poor Framing: This involves allowing a decision to be "framed" by the language or context in which it is presented. Often times, in making a decision, the whole system or situation surrounding the problem or opportunity needs to be carefully analyzed. (Andrew, 8) For example an opportunity that arose from a visit to ones village should not necessarily translate to the decision being centered only in that village. It may even be that the decision to provide a service in that village is transferred somewhere else since the success guarantee in higher in another location. b) Recent Effects: Making decisions based on recently seen information. It may also be known as availability bias. A careful analysis of that information may have eventually