Decision Making, Creativity and Innovation

Topic: Barriers to Decision Making

Dr. Kumaran Rajaram

College of Business
Nanyang Business School
 LEARNING OBJECTIVE

At the end of this topic, you should be able to

define the three barriers to decision making.

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BARRIERS TO DECISION MAKING

Psychological
Biases

Social Time
Realities Pressure

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 PSYCHOLOGICAL BIASES

Illusion of Framing Discounting

control effects the future
• Belief of • Decision • Bias
ability to bias weighing
influence influenced short-term
event even by the way costs and
when there in which a benefits
is no problem or over long-
control decision term costs
over what alternative and
will happen is phrased benefits
or
presented

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 TIME PRESSURE

Quality vs
Timing of
speed of
decision
decision

Real-time
information
Time pressure

Involve
experts
Tactics for
decision
making Value
differing
opinions

Top executive
make final
decision

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 SOCIAL REALITIES

Bargaining

• Interpersonal factors Intensive

can affect social Politicking
effectiveness of interactions
decision making

Decisions
• Consider preferences
and reactions of
many stakeholders

Pitfalls:
• Satisficing
• Groupthink
• Distraction from goal

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