Presented by: Dhanashree Limeya Siddharth Lodha Ankit Mehta Harish Mohan Himaja Kashyap Raghaw Mundhra

Decision making is the study of identifying and

choosing alternatives based on the values and

preferences of the decision maker

In many business scenarios, even the most

experienced managers decisions have led to

failures of Organizations.

Why this occurs??

 People avoid risky options normally Choosing between losses Example Administrator s choice of

projects

 Consequence of Poor Framing - Risky decisions Influenced by way choices are framed

Framing effects make it hard to bail out of

failing ventures

 Strong preference for risks While choosing a choice between losses When outcomes are not quantifiable When probabilities of outcomes are not certain Undesirable results follow if such pattern follows in important decision making

 Group decision making affected by framing Because of pressures, group members move towards majority positions in the group Other social factors involved in decision failures:
Overconfidence Leadership Practices Threat bias

 Training about the causes and consequences of framing effects Dont Immediately React with your first Impulse Employ Multiple Frames Encourage Multiple Framing by Rewarding it

 Attempt to identify the Appropriate Decision Frame Conduct some early stage deliberations in the absence of group leader Identify and Select those individuals who possess the ability to employ multiply frames

 Managers should beware of the decisions framed to appear as choices of losses. The choice of FRAME can lead to decisions that may be extremely risky and thus lead to the failure of decisions.