Rational business decision-making processes

Rational Business Decision

Poor Decision Making

One of the most difficult things to admit is when one has made a mistake. In retrospect, the decision not to promote Ms. X, given her sterling performance for our competitors, is one such a poor decision on my part.

However, I have learned from my mistake. I realize that I should not have rejected her request for a promotion, and the added responsibilities that such a position entailed out of hand.

At first, deploying what is known as Recognition Primed Decision Making, under the stressful situation of her immediate prompting, I bridled at the idea of paying her more, because I knew that the department was financially strapped.

However, she requested an audience with me. Still, I rejected her request again, deploying the Explanation-Based Model of decision making, when a decision maker such as myself "will attempt to create a full story from some incomplete raw facts and then match this story against possible choice options to come up with a solution." (Khan, 2004) realize in retrospect I was overly preoccupied with her reasoning for choosing to behave as she did, wondering what her personal reasons were for pressing for a raise at this juncture, and rejecting them, rather than considering as well her personal dissatisfaction with her advancement within the organization.

I think I also used image based theory to some extent, which involves imaging organizational principles, defining goals, and finally envisioning strategic plans to realize these goals -- however, by putting cost-cutting principles ahead of keeping quality people, of making my goal a balanced budget rather than a satisfied staff, and planning more on a balance sheet than recognizing Ms. X's personal feelings, I was in error.

These three theories are all legitimate theoretical operations, however, I deployed them in the wrong way. From now on, I know I must see decisions in human terms.

I am sorry such a valuable employee has decided to leave our company and is now doing such excellent work, in your estimation, for our competitor organization. I assure you such an error will not happen again.