Question

What obstacles must be overcome for effective decision making? What specific strategies can be used to promote a climate in which critical thinking is fostered? What are the risks in decision making?

Prepare assignment following the APA style guideline
Prepare your assignment using no less than 500 words
Site at least two more resources to complete assignment

Answer 1

Effective decision making is an art that needs to be learnt.

there are following obstacles which need to be overcome :

• lack of time as effective decisions take time
• Too much information may lead to confusion so right information is necessary
• Overconfidence
• Misdiagnosis of problem
• risk taking ability of managers

Strategies to promote critical thinking

1. Practise brainstorming before taking decision
2. Keeping the goal in mind
3. asking questions and gathering information
4. Obtain feedback from others
5. considering consequences of a decision

risks in decision making: it is a chance that action taken will result in loss

• Business risk which are taken by enterprises
• non business risk which arise because of economic and political instability
• financial risk in which there is chance of monetary loss.
• inflation risk is uncertainty regarding value of investment in future
• market risk is the possibility of loss due to market performance