Individual differences and complex business decisions
Decisions are made by people. Because we are all unique, with our own personalities, lived experiences, and biases, we each process information and make decisions differently.
An article in the Irish Times discusses decision making in the context of the changing world of work, and in terms of individual differences. The complexity and uncertainty in our environments and the pace of change seems to be increasing. This has led to effective decision-making an even more rare and valuable skill.
There is no one best personality type that will make a person more effective at decision making. Research on risk taking and decision making has found that there is an even distribution of different approaches to risk taking. This is of course crucial to our survival as a species.
Organisational Culture and Structure
Understanding our individual differences in how we approach decisions can be liberating and can help organisations to manage its culture. The Irish Times article makes reference to the financial crash when discussing the impact that corporate culture can have. This is in terms of it being able to help or hinder decision making and risk taking. When we are faced with risk, we tend to be less risk averse, trying to “gamble our way out of trouble.”
This article also mentions the importance of the ability to influence others. Being able to make a decision is of little use unless you can get others on board. It is different in the current climate. Many organisations tend to have flatter structures and leaders are less reliant on positional power or hierarchy. Here it is necessary to bring others with you in your decision making. People tend to have different preferences in the ways they influence others, so again understanding oneself can be of great value.
Interested in learning more?
Contact us if you’re interested in developing an awareness of individual differences in decision-making. This is particularly apparent to influence styles in your organisation. If you would like to become certified in scientifically valid and reliable tools which explores this, contact us at firstname.lastname@example.org or call +353 1 2788 727. We have an upcoming certification in the Risk Type Compass on 17th January 2019. We also have online accreditation programmes available on demand for the Influence Style Indicator and Change Style Indicator.