Psychology in decision making in companies

We all know that the demands that the market imposes today on companies - be they large or SMEs - are extremely complex and changing.

In this PsychologyOnline article, we will talk about the psychology in decision making in companies.

Technological development has a double impact:

• Makes products and services permanently subject to a continuous innovation process and fast, which forces companies to launch innovative products and services on the market in ever shorter periods of time so as not to be relegated to more imaginative competitors;
• The wide availability of information makes customers increase their analytical skills and decision-making power, which makes them more demanding and less faithful. In this sense, companies have understood that their management must be oriented towards them: from their recruitment, the understanding of their needs, the creation of specific departments for attention, incident management, loyalty programs, renewal and improvement of the offer (point 1). Neglecting customers means giving them over to the competition.

This context generates a lot pressure on the actors involved in decision-making within companies. They will be complex, multidimensional, original, groundbreaking, will have a very marked strategic sense, and are taken in a state of temporary pressure, that is, with a sense of urgency.

Decision-makers know that the continuity of the company depends on them. Today, wrong decisions pay dearly for. Because when you make a mistake, you give the competition a chance.

Therefore, we can conclude that decision-making in companies is a highly demanding process that It can generate:

• fear
• anxiety
• unsafety
• aggressive and defensive attitudes or behaviors
• mental block and the ability to analyze

these factors, which will have, among others consequences:

• insufficient scope decision making
• poor resource allocation
• strategic judgment errors
• staff disapproval which will affect the organizational climate
• dissatisfied customers loss of market share
• cost increase

Those who make decisions are people, and as such, they may need in highly demanding situations the assistance of a professional who from an objective position, and in a systematic and committed way, accompany them in this process, allowing them So:

• detect strengths
• recognize weaknesses and generate responses to overcome them
• clear mental obstacles that interfere with your ability to analyze the situation you are facing
• rationally set objectives establish performance and results measurement guidelines to evaluate the impact of the decision to be taken
• improve strategic thinking and business planning

I believe that it can never be stressed enough with regard to the need for companies to resort to trained psychologists and trained to understand the mood factors that always affect the complex decision-making process, and also knowledgeable, by career and training, of the world business. A Psychologist is a professional who as an advisor works on aspects of the person that affect the good performance and results of the company. It is hard to recognize in companies that the emotional and mental aspects are as important as competence, training, know-how, experience.

This article is merely informative, in Psychology-Online we do not have the power to make a diagnosis or recommend a treatment. We invite you to go to a psychologist to treat your particular case.