In this lifetime where diverse elements of competition are at hand, it is essential for an individual to be responsibly aware of the decision making process albeit with all its risks and challenges. In addition, it is imperative to explicate the psychology of successful risk takings by means of being proactive rather than attacking it in a passive manner, “The psychology of successful risk taking means taking a proactive rather than passive approach to the market and continually examining what you are doping that may be interfering with the trading process” (Kiev, 2002)
Decision making is critical nowadays as it is become the benchmarks of a successful output in any given field. It is essential to make some innovative ideas to transform the place and be productive the best possible way. “The task of managing risks effectively is confounded by a classical paradox that is if risks are being effectively managed as a matter of routine, there will be a very few surprises. Nobody becomes aware of just how effective careful risk-management actions have proven to be. Decision making is important because there are inextricable links with how managers perceive complex, systemic, and ever-changing dynamic risks” (McLucas, 2003), decision-making is the toughest job to obtain as enormous motivations and aspirations are needed to obtain the perceived goals.
Different strategies need to adapt in order to regain its strength and capture a wide array of career inclinations. Decision-making under uncertainty implies the existence of enormous alternatives. As decisions delve with expectations as regards to its outcome in the future, it depicts uncertainties as well when it happens that perceived goals were not achieved. Instead of focusing on the indifference of the scenario, it could be beneficial to consider the positive light of adapting new and upbeat strategies that will be beneficial to the working environment. Starting in making some alternative solutions would be an initial step to success if decision making has been paralleled by uncertainties. Further, innovative ideas are essential to adapt during this time of ambiguity.
Understanding the notion of framing in the representation of risk problems are essential elements in order to logically gauge the circumstance and give corresponding solutions to the uncertainties if it may arise, “in framing phase, the decision maker constructs a representation of the acts, contingencies, and outcomes that are relevant to the decision” (Kahneman and Tversky, 2000). The paradigm of understanding the logical implications of the complexities of competition for instance, it would require exploring more on the aspect of framing the goals and create supplementary renounce movements as regards to the alternative plans and solution implored by studying the concepts of framing. It is in this regard as well that having a back up strategy will enable the decision maker to have a diverse outlook on his goals in a given matter of interest.
Bounded rationality eludes the perception towards the concepts of the decision maker’s level of intelligence and how it is align in his work. It has been noted that in the event of bounded rationality perspective, there were only limited which is often unreliable, that information is available as regards to the possible alternatives and their consequences. In addition, human mind has limited capacity to evaluate and gauge the process of information which is available.
There were also limited amount of given time that is available to exemplify a decision ergo, individuals who aspire to make rational choices are surrounded by making satisfying choices albeit the complexities of the situations. On this note, it gives limitations towards the rationality and implores impossibilities of contracts that covers contingency plan of actions. “Market systems fail to resolve the problem of computing complexity for economic coordination because they do not have the incentive to produce the necessary public data base” (Simon, Egidi, Viale, and Marris, 2008), dilemma in decision making transpire most often for the reason that there is a lack of avenues that will enable the individual to participate in the mathematics of economic stability.
Awareness of the of the common forms of biases which affects the human mind in decision making is essential to explicate to reiterate the alternative grounds in order to counter shoot the circumstance. Parallel to this, defining the balances in the system of approach was deemed important to make the decision making more factual, “the field of behavioural finance has defined numerous ways in which investors act less than rational, these biases are common not just to the occasional investor or uninformed public but to professionals as well” (Kirkpatrick and Dahlquist, 2010). There were instances wherein everyone is aware that one should buy low and sell high but given this, we sometimes avail the contradictory which is buying the high and selling the low. This is a clear example what biases are all about and becoming aware to this phenomenon would enable an individual to scrutinize more on what to decide upon exhausting his human intellect.
We all agree that having a good job entails to have a great environment wherein we can work efficiently, but on another aspect, an unsuitable place to work could also be an inspiration for an individual to work efficiently and carry the drive to be more creative as he exhaust his best effort in making his company excel and compete with this emerging business world. Individual behavior in project teams could be additional grounds in making an excellent output however; there were prior implications for project management practice if at all, it will require a synergy coming from the team. Perhaps, decision making entails to have a huge dimension of grounds which were mainly consists of teams that will uplift the system of production and provide a greater output.
Kahneman, D. and Tversky, A. (2000) Coices, Values, and Frames, University of Cmabridge, United Kingdom. Kiev, A. (2002) The Psychology of Risk: Mastering Market Uncertainty, John Wiley ; Sons, Inc., New Jersey. Kirkpatrick, C. and Dahlquist, J. (2010) Technical Analysis: The Complete Resource for Financial Market Technicians, Pearson Education, Inc. U.S.A. McLucas, A. (2003) Decision Making: Risk Management, Systems Thinking and Situation Awareness, Argos Press, Canberra, Australia.