Managerial Decision Making essay 8 Example | Topics and Well Written Essays - 1250 words

Managerial Decision Making 8 - Essay Example Most researchers explain analogical thinking as the process of remembering a situation of the past and abstracting information from the same in order to develop better understanding of the present situation (Foreman & Selly, 2001). The purchasing decisions of individuals are influenced by analogical reasoning. It is considered as a technique which shoppers use to increase the satisfaction regarding the purchased commodity or service (Foreman & Selly, 2001). Last week when I was purchasing a mobile handset, I adhered to the information that was provided to me by the store keeper. Instead, if I had used my own analogical reasoning, perhaps I could have made a better purchase. Through analogical reasoning I could have analyzed my previous experiences with different brands. Analogical reasoning could have also helped me to consider and match my needs with the offerings of the product and chose more wisely. Biased behavior is a common issue faced in the daily lives of most individuals. Biasness refers to supporting a particular theory, an individual or to think in a particular manner without being rational. Biasness from others may arise out of different reasons such as lack of knowledge, attachment with particular individuals or the lack of familiarity with certain situations. Biasness may often cause individuals to take wrong decisions (Frame, 2012). Biased thinking may also arise out of individual heuristics. Heuristics is the process of taking decisions quickly without analyzing the same in depth or logically. Such an effect leads to the generation of cognitive biasness. Biased judgment can also arise out of wishful thinking. Wishful thinking and beliefs of individuals may act as suitable motivations for biased decision making. Understanding other people’s biasness is an important aspect while working in teams or while taking decisions collectively. This helps in understandi ng the motive behind their biased thinking. Once the motive is