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Decision-Making Process - Essay Example

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The paper "Decision-Making Process" is an outstanding example of a business essay. The person under discussion is Mr. Higashi he was born and lived in the Soto city of Japan; he was 44 years old and had a career in teaching in high school English programs around Soto areas. He promoted to work as a senior advisor to all English teachers at the Soto Board of Education…
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Case analysis Name of the student Name of the Institution Introduction The person under discussion is Mr. Higashi he was born and lived in the Soto city of Japan; he was 44 years old and had a career in teaching in high school English programs around Soto areas. He promoted to work has a senior advisor to all English teachers at the Soto Board of Education. This major step in his career as it strategically placed him to be the next school principal. With this new position, he was the direct supervisor over all the foreign JET participants in the office, as well as making him overseer for their actions. The two major decisions, which he did, are; first instructing Kelly to go and come with doctor letter as prove that she was truly sick. Secondly, he ordered for the paid leave and not paid sick leave as per Kelly request. The theories in this case first (1) theory is normative theory. Secondly, (2) heuristic theory and the third (3) theory is the attribution theory. The paper discussion the decision and management approached used in the case study of awarding paid vocational leave instead of paid sick leave. Analysis of the case Personality is defined as an enduring disposition that cause characteristics pattern of interaction with the environment (Barberis, 2013). Value on the other hand is conceptions of the desirable that has been developed over a period. The personal value perspective presuppose that decision makers, who are rational and objective and are wary of all involved risks, are armed with all the applicable information concerning values and personality regarding the scenario. Simon (in Buchanan & O'Connell, 2006) argues that people are likely to make rational decisions given that they collect the passable information and refereeing to the organization values. He argues that decision makers are likely to falter if they are constrained by difficult situations, inadequate time, and inadequate mental computational power leading to a state of bounded rationality those deviants from personal values and principles (Pedro, Nicola & Andrei, 2013). The decision 1 is a good example of a person acting under bounded rationality and from personal conviction. The decision lacks all the information about why all the JET employees were absent at the same time seeking for sick leave. In this scenario, he is hinders in making decision by his presumption of the situations without having adequate time to analyze the scenario. When considering a decision, the mind gives disproportionate weight to the initial impression, estimates or data anchor subsequent thoughts and judgments (Barberis, 2013). The decision 1 was derived from the presumptions that the foreigners do not like committing themselves to the company like the locals and the claim for sick is just a method of extending weekends but not genuine sickness. It is a good example of anchoring trap theory of decisions hence the stereotype kind of assumptions Sociologist like Weber argues that one is in a position of mastering everything and whenever they make decisions, the decisions are valid and correct from earlier experience (Barberis, 2013). Using sunk cost trap concept, it assumes that our deep-seated biases are to make choices, even when the past choices no longer seems valid to the current scenario. The sunk cost theorists argue most of the people have fallen into the sunk cost decisions where people subconsciously tend to decide what to do before knowing why they want to make such decisions. He had an instant liking of Kelly since she spoke Japanese and had some experience on Japanese lifestyle. Like the opinion that Japanese had about the Alt, they did not have trust the ALTs commitment to their work from the experience hence Mr. Higashi made decision based on his experience a clear application of sunk cost concepts in decision-making. From the personal perspective, they have tried to look for ways to perk up better outcomes that are at least satisfactory like in decision 2. Given the importance of decision making, amid the tough and risky circumstances, bad decisions are likely to cause irreparable damage to a company or an individual’s career from the personal perspective (Hammond et al., 2006). The research has shown that people use unconscious routines, known as heuristics, to manage the inbuilt difficulty in making most decisions. Heuristics simply support decision 2 to overcome its shortcomings. As a manager, using personal value it would have taken time to understand his decision-making process, and this would have guided his reaction and avoided sunk cost application concept in decision-making (Nicholas, 2013). The sociologist perspective believes that the impact associated with an actor is reflected in his past consistency. Therefore, by the reasoning of the attribution theory, behavior consistent with what expected should be attributed to stable characteristics of the actor and the behavior that deviates from expected, to a temporary causal factor (Barberis, 2013). Decision 2 deviated from the expected behavior as the case presented by the three ALTs. Actually, both of them fall sick, and they were to be given paid sick leave as opposed to paid leave as stipulated in the contract letter. His behaviour was also inconsistency as expected of a person of his positions and in some scenario, the secretaries were considered to be competent than him. It should be noted that, the heuristics differ from one individual to another relies on how they are vault in the person’s thinking process such that people fail to identify them as attributed by personal value perspective. Confirmation heuristic relates to the inclination for people to run for information that supports the earlier held positions or thinking in line with sociologist. The different heuristics come with flaws, which are dangerous given that decisions are hardly reversible once they are made. The confirmation trap influences people in that they will only collect information to support their belief and the manner in which such information is interpreted. The anchoring trap merely gives more and unnecessary weight on the first piece of information that supports the earlier belief such that subsequent judgements are outweighed (Hammond et al., 2006). Weakness and Strengths Enduring disposition that cause characteristics pattern of interaction with the environment is the personal value perspective. From the decision 1 of presumption of experience, it was quite haste for the first decision of awarding Kelly paid leave and not sick leave, though this can act as a disciplinary measure. Therefore, from the scenario, waiting for an explanation concerning the situations whether it was the intention, or it was true. Peoples comments are affected by peoples believe in many ways. At lower level, the observed effect is directly explained based on existing supposition about the causes for various effects (Hammond et al., 2006). At higher level, the magnitude or likelihood of a particular plausible cause for the effect is inferred according to person's assumption about how two or combined to produce an effect, the decision might result into positive behaviour among ALT. One an answered question through the study of beliefs in decision-making approach is that when new observation will modify the existing beliefs rather than simply be in terpreted in terms of them. The decisions should be based on individual and organizational values and norms. Ethical social consideration should be evaluated in making such decision. Sociologist believes that dialogue should be given an opportunity and personal character should not take centre stage in decision-making process. Some of the existing weakness in Mr. Higashi is that he is first to make a conclusion concerning a scenario specifically in regards to awarding paid leave instead of sick leave as Kelly asked for the permission. A first-class manager should be in a point to understand the circumstances. Secondly, there is a lack of understanding in part of him concerning the decision, which he has made (Teale et al., 2003). A leader should be patient and have understanding over its subject. Lack of motivation in the decision process, a person's interests became relevant to and entangled with the attribution process in several ways (Kahneman, & Tversky, 1979). They determine when an individual will become motivated to make attribution at all and if motivated so, whether he seeks causal understanding in an open-ended way or preoccupied with a particular causal question (Levy, 1992). They also determine when he will prefer to arrive at certain explanation rather than others. Due to self –esteem, social standing, sense of competence, all are influenced by the attributions one makes. Some of the strength in the decisions is that it brings some sense of discipline and responsibility has it is not easy to contain and manage human being. Naturally, human beings must be pushed for them to perform better therefore; this could be a way of pushing other employees to deliver within the company (Kahneman, & Tversky, 1979). Recommendation Offering an alternative to the game theoretical study of negotiation, which takes place in a world of impeccably, rational, everyone always wants to win the case. Rationalization and rational judgement is not just the knowledge but also the belief in its own principle. However, rationality cannot do without hope, confidence or what Keynes called “animal spirit” which is needed to enable decisions under uncertain condition. The decision 1 of demanding check up document from hospital is a disciplinary actions and authenticity hence recommended. Human decision affecting future, whether personal, political or economic, cannot depend on strict mathematical expectation hence the relationship between the two will be affected by the decision 1 and 2. Normative the models presuppose that decision makers, who are rational and objective and are wary of all involved risks are armed with all the applicable information. Mr. Higashi could have taken more time to understand the situations and conditions under which Kelly and her group were undergoing before making the decision he made. In support of the action, Kahneman’s postulation of the ‘thinking fast and slow’ analogy states that people should cool down before making a decision. When it comes to business decisions, there is rarely such a thing as a non-brainer; human brains are for all time at work sometimes, unluckily, in ways that holds back rather than helping us. The scenario on decision-making. Hence, the best recommendation here is temperance and understanding. At every stage of decision-making, process, misperception, biases and another conjuring of the mind can pressure the choices people make. Misperception in the mind of Mr. Higashi is the main factor used in making decision in this scenario. Using high complex decision making approach can be used in making decisions like disciplinary actions, though, it is prone to distortion due to the fact that they tend to engage most assumptions, the largely estimates and the most inputs from most people (Buchanan, & O’Connell, 2006). Cognitive ease is likely to cause one act more impulsively and quickly, hence, cause mistakes that can be avoided through in the decision-making process (Buchanan, & O’Connell, 2006). Cognitive ease is also driven by emotions and therefore one is likely to follow their first reaction to a situation. This is the case of Mr. Higashi making haste decision concerning the award of the paid leave. In order to avoid the effect sunk cost as stated by the theorists argues most of people have fallen into the sunk cost decisions where people subconsciously tend to decide what to do before knowing why they want to make such decisions (Tolbert & Hall, 2008). Managers should avoid making decisions from experiences and emotions as this can help in making solid decisions for growth and development of the organization. Reference Barberis, N. (2013). Thirty Years of Prospect Theory in Economics: A Review and Assessment. Journal of Economic Perspectives, 27(1): 173-196. Buchanan, L. & O’Connell, A. (2006). A Brief History of Decision Making. Harvard Business Review. Farnham, B. (1992). Roosevelt and the Munich crisis: Insights from prospect theory. Political Psychology, 13, 205-235 Hammond, J., Keeney, R.L., and Raiffa, H. (2006). The Hidden Traps in Decision Making. Harvard Business Review Kahneman, D. & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47, 263-291 Levy, J. S. (1992). Prospect theory and international relations: theoretical applications and analytical problems. Political Psychology, 13, 283-310. Nicholas B (2013). The Psychology of Tail Events: Progress and Challenges. American Economic Review 103:3, 611-616. Pedro B. Nicola G. & Andrei S (2013). Salience and Asset Prices. American Economic Review 103:3, 623-628. Teale, M. Dispenza, V. Flynne, J. & Curried, D. (2003). Management Decision-Making in Context. In M.Fitzgerald and S.Ayson, (Eds.), Managing under uncertainty: a qualitative approach to decision making, 7-25. Frenchs Forest, Sydney, Australia Pearson. Tolbert, P. and Hall, R. (2008). Decision-making. In M.Fitzgerald and S.Ayson, (Eds.), Managing under uncertainty: a qualitative approach to decision making, 28-38. Frenchs Forest, Sydney, Australia Pearson Read More
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