Improving the Decision-making by Managers: Choice Architecture

Decision-making and Valuation > Best Practices Premium

Improving the Decision-making by Managers: Choice Architecture
Anneke Zwart, Student (University), Netherlands

A different approach towards improving decision making is 'Choice Architecture'.
In every organization, employees tend to make decisions that will neither benefit their employer nor themselves. According to Beshears (2015), this happens not because those employees are stupid, but rather because of certain patterns in the human brain that lead us to:
- Underestimate the time needed for a certain task;
- Neglect critical information;
- Overestimate our own ability to perform certain jobs;
- Fail to take advantage of company benefits that are in our best interests.

The author argues that its very difficult to rewire such patterns in our brains. Rather than focusing on rewiring the wires, it could be possible to adjust the ENVIRONMENT in which decisions are made. By doing so, the likelihood of employees making better decisions is increased.

The following 5 steps are recommended:

Improved Decision Making by ManagersSign up
K.Narayana Moorthy, HR Consultant, India
Following factors might also help to improve decis...

Of Companies That are ObliviousSign up
Emmanuel Mwirichia, Manager, Kenya
I work at a company where none of these processes ...

Participatory Method of Managerial Decision-makingSign up
Masserigne, Other, Senegal
The best way I have experienced in order to be sur...

Decision Making with DataSign up
Raj Mohan, Management Consultant, India
Decision making can be done with ease if you have ...

Start by Identifying the Decision PointSign up
Sale, Manager, United Kingdom
Effective decision making is time related. The mor...

Importance of Decision CriterionSign up
Vijay Bhatia, Consultant, India
In my opinion, effective decision making is cri...

Decision Making... the Cause of Management ProblemsSign up
Subbaram Ranganathan Aiyar, Professor, Lesotho
I am of the opinion that a major decision affects ...

The Importance of Developing Decision CriteriaSign up
K.Narayana Moorthy, HR Consultant, India
Decision criteria should relate metrics directly t...

How to Ensure ETHICAL Decision-making by ManagersSign up
libin xiao, Student (MBA), China
According to Grove et. Al (2007), a balanced think...

The Importance of CONFIDENCE in the Decision CriteriaSign up
K.Narayana Moorthy, HR Consultant, India
During my last leg of service, a close associate a...

Decision-making is the Core Job of a ManagerSign up
Varun, Other, India
The core job of a manager is to make quick, calcul...

Making and Taking DecisionsSign up
Vijay Bhatia, Consultant, India
Building a positive mindset does not guarantee tha...

3 Simples Ideas to Improve Managers' DecisionsSign up
Zoniaina, Coach, Madagascar
How to make a decision?
- Put first thing fir...

Context of Decision Making ProcessSign up
Boris Verbitsky, Entrepreneur, Israel
There are dozens of decision m...

Initial Band-aids in Decision MakingSign up
Barney Wade Howard, Manager, United States
Good Article. I know I often have to use both form...

Issues of a Choice ArchitectureSign up
Gandhi Heryanto, Management Consultant, Indonesia
Making mistakes is a part of being human, and comp...

Choice Architecture Must Include Decision Making and Follow ThroughSign up
Briolett, Manager, Canada
It's important not to over-look the follow through...

Including Follow Through In Choice ArchitectureSign up
Vijay Bhatia, Consultant, India
Yes! Itís important that decisions made by the man...


  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

More on Decision-making and Valuation


Best Practices
Expert Tips


About 12manage | Advertising | Link to us / Cite us | Privacy | Terms of Service
© 2018 12manage - The Executive Fast Track. V14.1 - Last updated: 24-3-2018. All names ô of their owners.