Behaviour Decision Making for Managers: Relying on an Intuitive Solution

Subject: Management
Pages: 3
Words: 691
Reading time:
3 min
Study level: Bachelor


Making decisions is one of the key elements of management that defines a company’s ability to work properly and meet the set objectives. However, the process of decision-making is quite difficult since many factors have to be evaluated in the process. Due to the need to make choices fast and quite often, managers may consider using their intuition as a tool for decision-making. Although intuition can be seen as the ability to notice details subconsciously and base further decisions on this information, it may also lead to a mistake. Therefore, managers should combine an intuitive approach and use both their intuition and logical reasoning during decision-making in the workplace.

Removing Biases from Intuition-Based Thinking as a Possibility

Using a decision-making model based on intuition is very helpful in situations that imply uncertainties. Since one could argue that any business situation has several uncertainties, it is very important to use an intuitive approach (Keren & Wu 2016). It is possible to reduce the number and effect of biases on decision-making in business as long as one understands the limitations of one’s decision-making strategy. Thus, with a well-built approach toward reasoning and analysis, a manager will reduce the possibility of a mistake.

Relying on System 1 Thinking: Advantages and Disadvantages

Based on the Utility Model as the basis for business decision-making, one should consider different risks very closely. With a rise in uncertainty levels, the risk increases significantly, leading to a possible failure. Therefore, one should be very careful when using the intuitive thinking framework. However, the framework does provide a chance to make an important decision and solve a problem correctly. Applying the Expected Utility Model to the process of risk management and decision-making, one will see that the use of System 1 Thinking will cause a drop in the risk levels (Salas, ‎Martin ‎& Flin 2017). Thus, one should consider using the intuitive framework as the method of managing decision-making and solving difficult issues within a short amount of time.

Teaching Managers to Make Informed Decisions

To improve decision-making in an organization, one should use a combination of an intuition-based model and a logical strategy for decision-making. Put differently, one will have to teach managers to educate their intuition. Thus, the risks of making a mistake will drop. In economics, risks and ambiguity cannot be separated from management, yet they can be reduced when using a mix of a logic-based model and an intuition-based one. Managers need to be taught to use intuition-based strategies along with rational ones to produce effective decisions.

At the same time, managers should not be motivated by the arguments that seem obvious. Instead, it is necessary to focus on a thorough analysis of the available information. Thus, one will avoid the Allais paradox, which states that a manager that chooses the most certain decision increases certainty and not the profit (Keren & Wu 2016). A manager has to set clear goals and understand what the desired outcomes of the decision-making process are. Educating one’s intuition is possible once one explores one’s processes of data perception and analysis.

It is also very difficult for a manager to avoid the Ellsberg paradox during the decision-making process. Specifically, choosing a rather negative outcome compared to an unknown one, a manager may miss a big opportunity (Dürbeck 2017). At the same time, there is a threat of making a mistake that will result in an even greater loss. A manager needs to set realistic expectations and follow their intuition, at the same time focusing on the known data.


To choose the best solution possible, managers should combine an intuition-based approach and a decision-making strategy based on logical reasoning, thus educating their intuition. As a result, managers will have an opportunity to consider all possible solutions to a specific problem. The application of an intuitive strategy for choosing solutions will increase the opportunity of choosing a correct solution under time pressure. In addition, without understanding well the reasons behind their choices, managers may fail to create a logical framework for managing a company’s processes. Thus, combining logical and intuitive strategies seems to be the best tool for making decisions.

Reference List

Dürbeck, S 2017, The influence of intuition and emotions on decision making: using insights from behavioral economics, psychology and neuroscience, GRIN Verlag, New York, NY.

Keren, G & Wu, G 2016, The Wiley Blackwell handbook of judgment and decision making, John Wiley & Sons, New York, NY.

Salas, ‎R, Martin, L ‎& Flin, R 2017, Decision-making under stress: emerging themes and applications, Routledge, New York, NY.