Decision Making No unread replies. 12 12 replies. Leaders as well as other emplo

Question

Decision Making No unread replies. 12 12 replies. Leaders as well as other employees are often criticized for poor decisions. These poor decisions can be rooted in varied perceptual issues, over confidence, and lack of information. The following video explores Dan Ariely's view on control in decision making- highlighting some of the unseen influences in our perceptual process impacting decisions. After watching the video, reflect on your own work experiences. Have you witnessed someone (or possibly yourself) making a poor decision on the workplace? What was the impact? What do you believe led this individual to make the negative decision? How would you suggest the individual have handled the process differently if they could go back in time and make that decision again? https://www.youtube.com/watch?v=9X68dm92HVI (Links to an external site.)

Explanation / Answer

As stated in the question, there are many situation where responsible people make wrong or poor decisions under different situations.

There are various reasons for such poor decisions. Some of the reasons for poor decision are: -

1. Incomplete information about the situation or lack of subject matter knowledge among the decision makers.

2. Overconfidence among the decision makers.

3. Incapable person given the important position where the decision has to be taken

4. Influence of others to take certain decision

5. Fear of failure or fear of negative implications of the decisions.

There could be N number of other reasons that are responsible for the decision.

Following is the example of a poor decision taken in my workplace.

- In my organization, Sales target is given to the field people for each month, and there are various incentives linked with the sales target.

- The organization produces about 25 products. The sales target consists of individual target for each product and also combined target.

- The sales incentive is given for completing sales target for each product and also for the combined target.

- So it is sometimes happens that sales force in some region is not able to complete the target for few of the products but they complete the total target by over achieving in few products to compensate for underachievement in some products.

- In the month of April the Sales head has given a particular target to each of the field person as per usual practice.

- Every one accepted the target and month sales started.

- Sales head was knowing one fact, that out of 25 products 3 products will not be available for the sales due to unavailability of raw material.

- The total contribution of these 3 SKUs to total sales was about 5 %.

- The sales head decided not to disclose the fact of shortage of 3 products to the force.

- The month passed and the force was in the impression that the stocks will come soon.

- But it never happed and follow up started with sales head. Any last before few days were left for month end the head have to disclose the fact.

- By the time it was too late and the sales force was not able to compensate for the short product with the available products.

- The impact was that, the company was not able to complete the target value and also many of the field persons not able to complete the total target with other products as they have not planned previously and there was no time at the end.

- The fear of negative waves going into the sales filed form the beginning due to non availability of product lead to this negative decision.

- Instead the sales head should have declared the shortage at the beginning so that the field force is aware and geared up for the challenge.

- They can even make planes to compensate the total shortage of few products by selling other available products.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.