It is important for every manager to understand the behavioral aspects of decision-making. These are as follows:
(a) Rationality:
Decision-making is a mental process. The Human brain has the ability to learn, grasp, think, analyze, synthesize, evaluate and relate complex facts and variables which leads to rationality in decision-making.
(b) Commitment:
Sometimes people continue to try to implement a decision despite clear and convincing evidence that plenty of problems exist. This tendency to persist in an ineffective course of action when evidence reveals that the plan/activity/decision cannot succeed is known as escalation of commitment.
ADVERTISEMENTS:
According to Staw (1981), there are several reasons for escalation of commitment. Sometimes, the decision-makers ego is so involved with the decision that his identity is totally wrapped up in it. Failure or cancellation seems to threaten his reasons for existence.
Hence, he continues to push the decision despite strong evidence contrary to it. Some ‘decisions are such that their benefits will be visible only at the end and hence the decision-maker must stay on the decision.
Image Source: bethelcollegeville.org
Sometimes, group norms, social structure and pressure and group cohesiveness is too strong and provides tremendous support so that cancelling the decision is impossible. Organizational inertia may also lead to continuation of the decision.
(c) Ethics:
Ethics are an individual’s beliefs about what constitutes good and bad or right and wrong behaviour. Ethical behaviour is that which conforms to generally accept social norms.
ADVERTISEMENTS:
Some managerial decisions such as selecting or removing a teacher, dealing with students and parents, dealing with corruption concerning examination and students’ marks, assigning tasks to teachers and maintaining financial accounts properly involve ethical issues.
Thus, most of the ethical dilemmas centre on a manager’s direct and indirect personal goals and preferences. Thus, while taking a decision, attention must be paid to ethical considerations carefully and deliberately.