Managerial Decision Making

Running head: MANAGERIAL DECISION MAKING
MANAGERIAL DECISION MAKING
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1MANAGERIAL DECISION MAKING
Introduction
Decision making is considered to be a cognitive process in psychology that is mainly
based on the selection based on belief or the courses of action that are implemented among
the different available alternatives or possibilities. The decision making process can also
produce a final choice that is sometimes not able to prompt the effective actions. Decision
making can be further defined as the process that helps in proper identification and choosing
the alternatives that are related to the values, beliefs and preferences of the decision makers.
The method based on effective decision making can also be considered to be an activity that
is able to yield an effective solution that can be considered to be optima based on the
situation that has been developed within the organization. The performance of humans in the
decision making process can be identified effectively with respect to three different concepts
that include, psychological, cognitive and normative.
The essay will be mainly based on the bias that can occur in the process of decision
making that is implemented by the different organizations. The three concepts of bias that
have been taken into consideration for the analysis are, perceptual bias, judgemental bias and
impression management.
Three discrete concepts of bias in decisions
Perceptual biases are mainly considered to be systematic errors that can take place
and can be committed by the individuals in the process of perceiving others. The concept
based on perceptual bias can become quite damaging for the individuals who are a part of the
society. The perceptions can also be considered as the root cause of the conflicts that can take
place within the organizations. The situation of perception mainly occurs when an individual
in an organization is highly biased towards someone else. This also means that the levels of
bias can have a huge impact on the ways by which decisions are made by the individuals. The

2MANAGERIAL DECISION MAKING
bias in decision making is thereby based on the effective usage of the different sensory inputs
in an effective manner that include, sight, touch, taste, smell and hearing. The four types of
cognitive biases that are a part of the perceptions that people have include, loss aversion,
anchoring, choice-supportive bias and framing effect. Perception bias can also be the
considered to be a tendency that is based on the ways by which an individual can be
subjective about certain events and people who help in the proper collection of information
that is based on the study. The proper interpretation of the results of the study is considered to
be an important part of the decision making process of the organization. The individuals are
able to take decisions in an impartial manner with the support that is provided by the proper
information that is collected. The perception biases are considered to be an important part of
the decision making process that is implemented by the organizations. The bias is considered
to be an important part of the selective perception process. The perceptual biases are mainly
based on the two different concepts that include, the selective perception and the halo effect.
The ways by which managerial decisions are made by the individuals are considered to be an
important part of the influence that is made the process of perceptual biases can be
implemented. The humans mainly tend to develop the shortcuts that are related to the
development of proper understanding within the organizations. The errors that can take place
in the process of perceptual bias can disrupt and also distort perceptual processes that can
further lead to the faulty judgements. The cognitive resources are able to play a major role in
the ways by which the decisions can be made in an effective manner by the individuals.
The negotiators in an organization have to be aware of the ambiguous and volatile
information in the process of conflict. The awareness levels of the influences based on
different factors are considered to be an important part of the individual reference points or
the frames that are able to guide behaviour of different types of people. The negotiators or
individuals who are a part of the organizations are able to fulfil different expectations of