ECONOMICS

Detailed explanation-1: -Importance of decision making Our decisions affect people. Nearly every decision we make will affect different people in one way or another. It’s important to be aware of the influence our decisions will have, and understand what the “human cost” will be. The decisions we make demonstrate our values.

Detailed explanation-2: -Significant factors include past experiences, a variety of cognitive biases, an escalation of commitment and sunk outcomes, individual differences, including age and socioeconomic status, and a belief in personal relevance. These things all impact the decision making process and the decisions made.

Detailed explanation-3: -Good decision-making can help managers show their employees that they value their work and have their best interests in mind. When a manager takes the time to evaluate, analyze and explain decisions, they also display thoughtfulness and trustworthiness.