Business Ethics

Business Ethics

Ebens Jeremie

BUS 670

Kim Stock-Foster

May 14, 2012

Detailing three of the Common Characteristics of Poor Decision Making

I do think before anyone detailing the common characteristics of poor decision they may encounter any organization, it only fitting that they understand how decisions are actually made in the first place in a real world organization. Sometimes, business decisions are made following a step-by-step decision-making model, which helps to eliminate biases and perceptual short cuts, through looking in-depth at many alternatives and potential solutions to the problem. This is very important, but perceptual biases can also enter this type of decision-making process. It is important to have training to understand your own perceptual biases and the impacts they can have on your decisions and business decisions. However, perceptual short cuts are still alive and thriving in the real world organizations.

Recognize common characteristics of poor decision making is essential for any organization. Being overconfident, lack of understanding of complex issues, weak or non-existence governance structure are some of the common characteristic that can lead someone to make poor decision. There's nothing wrong of being confident, but the overconfidence can potential lead to illogical rationalizations or being egotistic prevent a thorough analysis of business transaction. Regardless of any organizational size, businesses transactions are complex and there are many external factors that are interdependent of each other. Therefore, being able to understand to conceptualize the entire business process plays a critical in mitigating poor decision. From a personal experience, I have worked with countless colleagues who very talented and possess diverse skills within their field. However , they lack the vision to see what beyond their eyes. At all cost, they are so ready and in a such a rush to execute without making a complete and...