Improving the Decision-making by Managers: Choice Architecture

Decision-making and Valuation > Best Practices > Improving the Decision-making by Managers: Choice Architecture

Improving the Decision-making by Managers: Choice Architecture
Anneke Zwart, Student (University), Netherlands, Moderator
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 Managers
K.Narayana Moorthy, HR Consultant, India, Member
Following factors might also help to improve decision making by managers:
- List all possible solutions/options;
- Gather data/information (...Sign up

Of Companies That are Oblivious
Emmanuel Mwirichia, Manager, Kenya, Member
I work at a company where none of these processes are taken into account. You end up having management decisions made without considering any paramete...Sign up

Participatory Method of Managerial Decision-making
Masserigne, Senegal, Member
The best way I have experienced in order to be sure to take the best decision is "brainstorming". You should ...Sign up

Decision Making with Data
Raj Mohan, Management Consultant, India, Member
Decision making can be done with ease if you have sufficient data/information on the impact of the decisions on the affected people (both current and ...Sign up

Start by Identifying the Decision Point
Sale, Manager, United Kingdom, Member
Effective decision making is time related. The more time one has to analyse and understand the problem and then to collate information, the more effec...Sign up

Importance of Decision Criterion
Vijay Bhatia, Consultant, India, Member
In my opinion, effective decision making is criterion related. Whether one quickly thinks of an alternative or needs time to arrive at various ...Sign up

Decision Making... the Cause of Management Problems
Subbaram Ranganathan Aiyar, Professor, Lesotho, Member
I am of the opinion that a major decision affects the sustenance of an organization and hence needs analysis of various issues on hand... Since a deci...Sign up

The Importance of Developing Decision Criteria
K.Narayana Moorthy, HR Consultant, India, Member
Decision criteria should relate metrics directly to the accomplishment of the goals and objectives of the organization. Decision makers first establis...Sign up

How to Ensure ETHICAL Decision-making by Managers
libin xiao, Student (MBA), China, Member
According to Grove et. Al (2007), a balanced thinking style of both linear and nonlinear is advocated to improve managerial ethical decisions.
I ...Sign up

The Importance of CONFIDENCE in the Decision Criteria
K.Narayana Moorthy, HR Consultant, India, Member
During my last leg of service, a close associate asked me:
'Sir, what is the secret of your success?'
I said: 'Good Decision Criteria'.
...Sign up

Decision-making is the Core Job of a Manager
Varun, India, Member
The core job of a manager is to make quick, calculative and wise decisions. The results may be unknown and the manager needs to keep an eagle's eye on...Sign up

Making and Taking Decisions
Vijay Bhatia, Consultant, India, Member
Building a positive mindset does not guarantee that you will be a successful decision maker. No matter what your mindset is, if you are inclined to ig...Sign up

3 Simples Ideas to Improve Managers' Decisions
Zoniaina, Coach, Madagascar, Member
How to make a decision?
- Put first thing first
- Know and then do
- Do and then learn
Do you think that these ideas are easy? Try...Sign up

Context of Decision Making Process
Boris Verbitsky, Entrepreneur, Israel, Premium Member
There are dozens of decision making strategies and tactics. But if we divide the decision making process into two patterns: QU...Sign up

Initial Band-aids in Decision Making
Barney Wade Howard, Manager, United States, Member
Good Article. I know I often have to use both forms of decision making that you outlined. Sometimes there is only time to put a band-aid on something ...Sign up

Issues of a Choice Architecture
Gandhi Heryanto, Management Consultant, Indonesia, Member
Making mistakes is a part of being human, and completely eliminating mistakes is impossible.
The way a choice is presented influences what a deci...Sign up

Choice Architecture Must Include Decision Making and Follow Through
Briolett, Manager, Canada, Member
It's important not to over-look the follow through of all employees in the decision making process. As managers we gain experience making business dec...Sign up

Including Follow Through In Choice Architecture
Vijay Bhatia, Consultant, India, Member
Yes! Itís important that decisions made by the managers are understood and enhanced by all concerned. The negativity of the views and lack of proper a...Sign up

Decision-making and Valuation

Best Practices


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2019 12manage - The Executive Fast Track. V15.0 - Last updated: 24-6-2019. All names ô of their owners.