The Decision Making 's The Cognitive Process Essay
Decision-making’s the cognitive process resulting in the selection of a course of action from alternative possibilities. It’s the study of identifying & choosing alternatives based on the values & preferences of the decision maker. It is the central activity of management & is a huge part of any process of implementation, (businessdictionary.com). This essay talks about decision making in financial terms. Distortions in making decisions lead us to make decisions that result in suboptimal outcomes & no wonder, this needs to be changed. There are several steps that need to be taken to improve these results & avoid such misjudgements. Looking into various academic sources, journals & a personal experience, this information’s been allocated here & the findings are as followed.
Distortion is changing the shape, perception or qualities of something. The innate (inner instincts) or unconscious first thoughts or impulses are changed & adapted by norms, mores & what we have been taught to become different to conform, Power (1998). In decision making too, distortions play a really important role. One can easily lean towards a less productive decision because of distortions, Simon (1979). Cognitive distortion is an exaggerated or irrational thought pattern that’s believed to perpetuate the effects of psychological states, Goleman (1990). These distortions are thoughts that cause individuals to perceive reality inaccurately, these…