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Judgement in Decision Making – JDM

Updated: Mar 10, 2022

What role does Judgement play in Decision making? A snippet from a writing Albert Einstein, the great German-born theoretical physicist has written, says it all. “The intuitive mind is a sacred gift and the rational mind is a faithful servant.” What the intuitive mind will say the rational mind will do. Just imagine if they go the right way together what all they can do. And if they go the wrong way, they can create chaos. That is the relationship between Judgement and Decision Making.

To know the true value of this relationship, one must first understand Judgement and Decision Making separately.

What is Judgement – Excluding specific legal and religious definitions, judgment has a number of meanings. Since this blog is more inclined to talking about judgement in business and personal decisions, here is a meaning that will throw light on this subject.

Judgement means being able and capable to make informed and effective decisions and come to sensible conclusions. The qualities required to make correct judgement, come with the ability to perceive, distinguish and understand situations, be sensitive and form correct opinions about people, situations, ideas or events through assessment, comparison, and/or deliberation.

What is Decision-Making? As defined in Merriam-Webster, Decision Making is the act or process of deciding something, either by self or with a group of people. It is a course of action purposely chosen from a set of alternatives to achieve self, organizational or managerial objectives or goals.

It is a cognitive process, which results in the selection of a belief or a course of action from within several possible alternatives. The end of a decision-making process produces a final choice, which may or may not prompt action, but clearly indicates a way forward.

Judgement and Decision Making – JDM A judgment or decision making (JDM) process accounts for the way individuals makes complex decisions based on uncertain information or a particular outcome. In this process, there exists no specific criteria to know whether a single choice or judgment is correct, since it is personal opinions or preferences that play a role in determining the response.

Importance of JDM in today’s Business Scenario? Decision-making is one of the most important skill a businessman or any professional must possess whether the business is small or big. The process of arriving at a decision must be precise, as it will pave the way for best results. A wrong decision or judgement can act like a spoke in an otherwise smooth functioning wheel. Making snap business decisions or changing business practices on a whim or without carefully considering it can have irreversible consequences on the business or people. An issue or business decision should be first brought to the table, carefully considered by relevant teams, and should preferably have inputs from several others before taking the final decision.

Common Challenges one can face during a JDM process:

  • Having too little information

  • Having an overload of information

  • Confusion or less clarity about the problem

  • Being overconfident about the outcome

  • Not following a logical process to achieve desired results

There is no saying if the outcome would be as desired. Even then in every JDM process, one must follow the steps of the decision making process, as the probability to get the desired result is much more than doing it in a haphazard manner. Decision making is a vital skill in the business workplace, particularly for managers and those in leadership positions. It will help organisations if they follow a logical procedure in every JDM process along with being aware of common challenges, like the ones stated above. This awareness can help ensure that the decision making is positive and will fetch the desired results.

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