DECISION-MAKING

Decision Making: Influenced By Many Factors
Decision making at its core can be described rather simply. However, cultural conditioning can influence how we go about selecting data, choosing criteria, and making weighted decisions. In this section, we will describe a rational decision making model, and provide some guidance on how this model can be influenced by other factors, such as heuristics.

Thomas (2008, p. 97) shares that a rational decision model includes all the following steps:

(Thomas, 2008, p. 97)
 * Accurately define the problem
 * Identify all decision criteria
 * Accurately weigh the criteria according to known preferences
 * Be aware of all available alternatives
 * Accurately assess each alternative

At the conclusion of this process, a person would then choose the optimum choice (Thomas, 2008, p. 97). Since this is often not possible, even with a shared cultural perspective, the task becomes further complicated when there are “cultural constraints on rationality” (p. 97).

As an example of decision making in action, the following video describes specific problems, which a large well-funded organization decided to address. Bill Gates, one of the richest men in America, makes decisions on how to invest funds from the Bill and Melinda Gates Foundation to achieve their mission: to increase opportunity and equity for those most in need (gatesfoundation.org.2010.websource). In this video, he describes some of the challenges his organization is addressing, and outlines the data points that he has chosen as having the most impact – for instance, isolating better teachers as a pivotal factor in closing the achievement gap with Asia (www.ted.com, 2010, websource).

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Note how these problems were chosen and how they differ from another he mentions, specifically baldness, which has been collectively chosen to be solved by others ([|www.ted.com], 2010, websource). Neither is a wrong decision, nor is this a perfect example. However, this helps demonstrate how the rational decision process can lead to different outcomes, based on the individuals involved in the decision-making.



As noted, a number of factors influence decision making. When working with a cultural diverse geographically dispersed team (GDT), this can become even more of an issue. Heuristics, or cognitive “rules of thumb,” help explain why this is the case (Thomas, 2008, p. 98). Here are three heuristics, which are influenced by the culture in which we live and are used to simplify decision making (p. 97):


 * **Heuristic** || **Impact** ||
 * Availability – how easily an individual can recall information about an event (Thomas, 2008, p. 99). || The more easily an event can be recall influences the incidence of that particular event (p. 99). For instance, if an organization insures water damage claims, the people involved might believe they need to staff heavily after two heavy claim years, rather than looking at a longer time horizon. ||
 * Representativeness – An individual’s assessment of an event occurring is influenced by how similar that event is to stereotype of similar experiences (p. 99). || The more similar an event is to a similar experience, the more likely the event may be expected to occur a certain preconceived way. For instance, Thomas (p. 99) details the perception by some that chance experiences should even out. Therefore, after three bad claim years, some individuals might believe they are “due” for three good claim years and may then make decisions accordingly. ||
 * Anchoring and Adjustment – the starting point (anchoring) for a decision making process, which may be based on information, data or random conclusions (p. 100). This starting point may be adjusted (adjustment) based on additional information, but the decision often lands near where it started (p. 100). || Once a frame for the problem is set, flaws that may have gone into this initial assessment can influence the outcome (p. 100). For instance, in the above example, staffing might be held to a level for “good claim years” long after it should have because of this initial faulty assumption. ||

In this section, we have described a rational decision model, and outlined how personal perception can influence how a decision is actually made. The three described heuristics can be referenced when interacting with others to help understand influences in the decision making and make for better understand among GDTs.

And, when all else fails...here's a final suggestion: 