With increasing pressure to make better decisions in less time, managers often use the fast and easy method of decision-making: ". Gut feeling" is, but recent research suggests that the decision to intuition is much less reliable than most people believe. Managers need to use more sophisticated methods. This article describes a series of increasingly precise (and require) decisions approaches. It begins with a purely intuitive choices that are fast and the least accurate, and then considered heuristic shortcuts and rules of thumb. Then discusses more advanced and reliable techniques, such as loading and cost analysis. It examines the strengths and weaknesses of each approach in terms of speed, accuracy, and validity, with illustrative applications to the management practice. Finally, the authors offer practical advice for managers on how to more sophisticated methods can be incorporated into the organization. "Hide
by Paul JH Schoemaker, J. Edward Russo Source: California Management Review 23 pages. Publication Date: 01 Oct 1993. Prod. #: CMR045-PDF-ENG
Related Case Solutions & Analyses:
Genzymes CSR Dilemma: How to Play its HAND
Sowers Action (A): The First Ten Yards
Pedigree vs. Grit: Predicting Mutual Fund Manager Performance
The Elcer Products Transaction: Confidential Information for Euro Elektrische Keramische Vorrichtungen (Euro EKV) GmbH
The Elcer Products Transaction: Confidential Information for Elcer Products Division President
The War for Management Talent in China: LEOX Design Partnership
Opportunity Recognition and Breakthrough Innovation in Large Established Firms
Energy Management Exercise
Lyondell Petrochemical Co.
Strengths Become Weaknesses: Cognitive Biases in Founder Decision-Making
