Managerial Decision Making Essay

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A hallmark of today's business environment is its chaotic nature. This chaos is rooted in unprecedented rates of change and high levels of complexity. In turn, rapid change and effective decision-making create an environment of high risk in which decision makers possess little certainty about what the future holds.


Naturalistic decision making helps managers to understand how decision are made in complex situations, uncertainty and changing conditions.
Research and understanding of naturalistic decision making helps organizations to interpret cognitive functions and improve their everyday performance. Following Cannon-Bowers et al 1996: "There is no doubt that the overriding strength of the NDM perspective on decision making research is its focus on how decisions are made in complex, real-world environments" (p. 193). Managers do not always remember and thus learn from their mistakes, because they do not realize they have made mistakes. A naturalistic decision making gives managers means to disengage themselves from a particular situation, from its narrative, from one's roles, and from a dominating conceptual scheme. Effective application and understand of naturalistic decision making enables one to assess one's situation, to evaluate present and new possibilities, and to create decisions that are not parochially embedded in a restricted context or confined by a certain point of view. Naturalistic decision making takes into account ethical theory but not abstractly (Flin 1996).
In complex environment, naturalistic decision making is crucial for organizational behavior and effective performance. ...
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