Question

conceptualize how emotions affect business decision making

conceptualize how overconfidence can affect business decision making

Explain in detail please

Answer 1

1st part:

Emotions are required to be kept aside while taking the business decision making process. It distracts the logical thinking and disconnects to do analysis based on the practical scenarios.

In the organization, the managers are responsible for performing planning’s and strategic activities to make the project successful. If the manager remains extremely excited, sad, happy, and angry while taking the decisions for the organization, the outcome may be expected to face future uncertainties. As the decisions are always necessary to take based on some strategic conditions then allowing or remaining in any sort of emotional thought will hamper the outcome. In general, cases, if any business professional is completely engaged in emotional feelings, frustration, tension, and fear, etc, then it will surely affect the behavior of the person. Thus, this kind of act will make the individual influenced strongly by emotions that may obstruct to take effective decisions.   

2nd part:

Overconfidence gives the full assurance of belief that not to revalidate task, check decisions, verify objectives, and determining plans to avoiding uncertainties. In an organization, overconfidence makes the process of work unchecked and untested. The organization business decisions are generally undertaken by the top level managers. It is seen that some of the managers show negligence in the conduction of the decisions as they are having the high level of confidence; for this purpose, they never do effective analysis and also not consider the important factors to reach the decision.

To reach a business decision it is required to do mapping on the points like; SWOT analysis, pricing validations, competitive advantages, segment validation, and focus on the proven strategies. If all the above factors are not being considered and the decisions are thrown to make effective then it will lead to showcase the character of the overconfidence. The overconfidence will not only affect the outcome of the decisions undertaken but will lead to face major problems in the non-fulfillment of the work and also the process may lead to face unsound situation.