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How Are Decisions Made in Business?

The Fundamental Approaches to Decision-Making

“The three main approaches to decision-making are ‘thinking first,’ ‘seeing first,’ and ‘doing first.’ They correlate with conventional decision-making models. Rational decision-making follows a clear process: define → diagnose → design → decide. However, the rational approach is rarely applied in practice.”

The Dichotomy of Decision-Making Styles

“The conceptual model includes factors that foster strategic thinking (systemic perspective, focused intent, intelligent opportunism, time-based thinking, and hypothesis-driven analysis), organizational performance, and the moderating effect of decision-making styles (intuitive and rational).”

The MIDAS Model in Sales Planning

“MIDAS is Gartner’s decision-making model for sales planning. It emphasizes agile, adaptive, continuous, or real-time decision-making in B2B sales. The five core elements of the MIDAS model are:

Monitoring – Collecting relevant information from a wide range of sources, including buyers, sellers, partners, and the broader market.

Interpretation – Transforming raw data into valuable information that drives actionable insights.

Decision – Evaluating the pros and cons of multiple alternatives, both individually and collectively, to choose the right course of action.

Action – Implementing decisions and leveraging rapid experimentation with planned, adaptive success measures.

Sustainability – Supporting decisions and changes through culture, strategy, and enablement—while making incremental adjustments as needed.”

Typology of Decision-Making Strategies in Groups

“This article presents a theoretical model of group structures and processes for decision-making in cases of ‘programmed,’ ‘creative,’ and ‘compromise’ problem-solving.”

The Impact of Organizational Behavior on Decision-Making

“Organizational behavior can significantly impact decision-making processes in several ways:

Perception: Organizational behavior influences how people perceive their work environment, roles, and relationships. These perceptions shape how individuals process information and make decisions.

Attitude: It affects individuals’ attitudes toward their work, colleagues, and the organization. Positive attitudes can enhance decision-making, while negative attitudes can hinder it.

Motivation: It impacts an individual’s motivation to perform their work, driving decision-making by encouraging goal pursuit and action-taking.

Decision-Making Styles: Organizational behavior shapes how individuals analyze information, weigh options, and make choices.

Group Decision-Making: It influences how groups collectively make decisions.”

Decision-Making Approaches of Executives

“When making strategic decisions that are not pre-defined in detail, managers use causal reasoning, as described in the narrative model, to process information. This narrative selectively organizes information into a coherent causal structure.”

“The specific nature of the decision-making context defines the scope conditions that predict whether the narrative model or the anchoring and adjustment model will dominate.”

The 3C Decision-Making Model

“To restructure decisions in a way that addresses greater complexity and uncertainty, effective decision-making must be more connected, contextual, and continuous.

Connected Decision-Making: No decision exists in isolation. Decisions made by one actor influence others within the organization and ecosystem, and vice versa. Decision-making must become more interconnected, not only hierarchically (strategic > tactical > operational) but also in a networked manner. Sharing data and insights across organizational boundaries is key.

Contextual Decision-Making: Decision alternatives must be evaluated in a way that considers the broader context beyond a single event or transaction.

Continuous Decision-Making: Organizations must be highly responsive to opportunities and disruptions. Decision-making is becoming a more continuous process, where organizations must keep their options open.”

The Decision-Making Process in Professional Practice

“The four key categories of decision-making processes are: information gathering, using scientific evidence, drawing from experience and tacit knowledge, and integration. Our findings highlight the interaction between research-based knowledge and practice-based knowledge when designing interventions.”

The Process Approach to Decision Management

“Most people think of decision-making as an event. It is rare to find a single point in time when a ‘significant decision’ is made, and events proceed from there. In reality, it is a process. The manager’s role in overseeing this process is simple yet extremely complex.”

“When establishing a decision-making process, first define the issue to ensure the right questions are asked and that everyone agrees on what needs to be decided. Then, build your team and manage group dynamics to analyze the problem and create feasible solutions.”

The Role of Technology in Decision-Making

“In effective decision-making, both machines and humans have their roles. Human decision-makers should not be replaced everywhere; rather, they should be supplemented by the power of data, analytics, and artificial intelligence.”

“When all these elements are carefully orchestrated, the result is a rich synergy between human common sense and practical experience with the insights that AI models and algorithms can generate from ever-growing data volumes.”

Empatyzer – The Ideal Solution for This Challenge

Pillar 1: AI Chat as an Intelligent 24/7 Coach
The AI chat understands the user’s personality, character traits, preferences, and organizational context. It delivers highly personalized advice tailored to both the individual and their team. Recommendations are provided in real time, helping managers solve problems immediately rather than waiting for training sessions.

Pillar 2: Micro-Lessons Tailored to the User
Twice a week, users receive short, condensed micro-lessons via email that can be absorbed in just three minutes. These lessons are personalized—focused either on the manager (e.g., their strengths, weaknesses, and how to utilize them) or on team communication and relationships.

Pillar 3: Professional Personality and Cultural Preference Diagnosis
The tool analyzes the user’s personality, strengths, weaknesses, and unique traits in the context of their team, company, and the broader population.

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