The Science Of Decision Making The Reason Intelligent People Make Dumb Decisions

The process of making decisions is the process that we use to evaluate and decide on alternatives, producing an ultimate decision that may or not lead to an action. It is fundamentally solving problems. The beliefs of the decision maker as well as values and information can influence whether it is more or less so.

Since we are required to make decisions everyday at workplace and in our private lives it's surprising that smart decision making is not taught in the classroom. This is a talent that every person should have in their toolbox.

The neuroscience behind decision making

Researchers have identified several brain structures that are involved in decision making. These include the anterior cingulate cortex orbitofrontal cortex and the ventromedial prefrontal cortex. These names are not important. Furthermore, it's interesting to observe the way they act. The participants in the study showed various brain activity patterns, based on whether they received instructions or had to make the decision independently. Our brains react differently to instruction from other brains when it comes to time for decision making. Look at here to discover a useful content on random letter.

Decision making is a complex processand involves several other variables such as your environment, time-pressure, and your actual and perceived information that could affect the choices you make. It is important to recognize that you're not making decisions in a vacuum so that you can make smarter choices.

The three decision-making styles

Although external factors can be difficult to anticipate or control, it is possible to recognize your own preferences for decision-making and make better choices. It is important to remember that nobody has a fixed range of cognitive styles. These styles change depending on the circumstance that is at hand, the decisions taken, as well as other factors.

Rational vs. intuition

Two different types of cognitive functions are in play during your decision-making process. The first, System 1, is an intuitive automatic system. The second (you know what, System 2) is a laborious rational system. System 1 is speedy and implicit and is top-down. While System 2 is slow and explicit and top-down. It is possible to learn more in the great book Thinking, Fast and Slow by psychologist Daniel Kahneman.

Maximizing versus. satisficing

The majority of people fall into two major cognitive styles. Maximisers can make the best decision while satisficers are able to find the most appropriate solution. In the end, those who maximize tend to take longer to reach the right choice, while thinking deeply about the possible outcomes and trade-offs. They will also tend to regret their choices more often.

Combinatorial vs. positional

Combinatorial styles are characterised by a specific clear, well-defined material goal. This is the preferred style when the objective is clearly defined. This style is used when the goal is clear. We use the positional approach in situations where the goal isn't so clearly defined. We make choices to take on any potential risks, shield ourselves, and create an environment where it's less likely to be impacted by negative unanticipated outcomes.

Being aware of your decision-making styles does not mean that it's easy to shape them, it can aid in using rules and frameworks to make smarter decisions. There are a variety of decision frameworks that I like, but the one I like best is the framework used to make decision-making.