Wednesday, February 17, 2010

Emotions in Decisions

Dealing with human emotions in business is an interesting and intriguing task. In my recent readings of “Judgment in Managerial Decision Making” by Max H. Bazerman and Don Moore, I have several “ah-ha” moments. I am fascinated by all the things to consider to make an objective and rationale decision. I am also fascinated by how many factors I need to consider when I am observing the behavior of others and the factors affecting them.


The motivational and emotional influences affecting decision making are very important to understand and comprehend when playing a management or leadership role. There are many times I have to override my impulse to do something and instead replace it with the action I know is right. In other words, doing the right thing, not doing the compelling thing. The conflict between what I want and what I know is right. That is the two individuals referenced in the book on page 85 and known as “multiple selves”. Does overriding my desires in this case keep me just one step from identifying with the alcoholic or drug addict? Immediate awards or delayed rewards? The “should” self is much safe but the “want” self can be oh so much more gratifying.

The book questions the effect of “positive illusions” as well. I like to see a person with a positive self image. Even those that may not have the skills to accomplish the task may have the confidence to give it a try and thereby, pull it off. I would rather see a failed attempt than no attempt at all.

More interesting, and perhaps more dangerous, is “self-serving reasoning”. I am not very patient with self deception in others. The science of learning to look at a situation objectively and without self interest is perhaps one of the strongest traits an individual can possess. Teaching it can take an entire semester alone. This self interest perspective has caused me many a long meeting without resolution. Biases can affect self interest as well. I would like to think I can avoid bias when I make a decision, but chances are that would be “self-serving” reasoning.

Do emotions affect reasoning? Absolutely. Can emotions influence judgment? Positively. The important thing to learn is to loop back to the beginning of this post and remember to think of what you “should” do, not what you “want” to do. If you can’t do that, get some sleep and tackle it in the morning

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