Dienstag, 9. Februar 2010

Rational versus Emotional Decision Making

Human brain researchers have determined that the more that is on one’s mind, then the more likely one will make an emotional decision rather than a rational one. Could this provide an explanation why so many decisions by managers and employees continue to seem irrational?

As background, the brain researchers conducted an experiment asking people to memorize a series of numbers in sequence ranging from two to seven numbers. After given their numbers all the individuals had to do was walk down the hall to a room and write the numbers down. But there was a catch. As the subjects walked down the hall another researcher interrupted them and offered a gift for participating of either a piece of chocolate cake or an attractive bowl of fruit. The results were surprising (and very statistically significant). Those with the least numbers to memorize chose the fruit whereas those with more numbers chose the cake. Why is this?

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