Psychology of Judgment and Decision Making

Decision making is defined as the result of cerebral and mental procedures, which directs the individual to select a particular course of action from several options available. The final choice is the outcome of each and every decision making.  Judgment is considered to be the assessment and evaluation of facts, information and data which leads to the formation of decision. In psychological terms, judgment is the cognitive and adjundicational quality of human being, which can influence their decision making (Tan  Lipe, 2007).  The case study presented in this paper will be discussed extensively to explain the psychology of judgment and decision making.

Scenario
In a recent meeting between the production manager, Ron and the salesperson from Big Machines Inc, it was observed that the representative was discussing the benefits of additional sales and services. Big Machines Inc is the main supplier of production equipment. After showing an impressive and thorough presentation, she effectively demonstrated the information related to the additional sales and services. According to research, a well presented presentation of facts and figures is most likely to influence the target audience. Similarly, the sale representative gave an effective presentation and presented the information related to additional options and services systematically. The power point presentation was used to catch Rons attention. Furthermore, the detailed video used impressed him. Literature suggests that well-defined and well-structured presentations can influence the decision making procedure of individuals. Consequently, Ron agreed to buy the additional options and services, thinking that it would increase the efficiency and would be cost effective. In short, Ron had developed a particular opinion about the additional options and services based on the presentation, which persuaded him to buy it.

Different Frame
Ron would have made a different decision if he had the ability to analyze and examine the information presented to him. At the same time, he should have the ability to construct a logical and rational base for the evidence provided to him. As mentioned earlier, judgment is the cognitive quality of human being to analyze and evaluate of evidence. It is also the ability to think logically and construct analysis based on the data and information presented. Rons decision would have been different if he would have analyzed the information intelligently. After that, he should have gathered the data or information available to him in order to seek for alternatives. Based on alternatives available, he should have analyzed the choices available to him. During this stage, it was important for him to consider decision outcomes. After a careful review of alternatives, he should have selected the best choice, which would prove beneficial for the organization.

Decision Making and Moral Implications
Decision making frames are considered to be outlooks or point of view, which are used when making a decision in order to guide the entire procedure (Tan  Lipe, 2007). The salesperson has influenced Rons decision frame very convincingly by providing detailed information on the additional options and services. She was aware that the presentation had caught Rons attention. In order to fully convince him, she made strong emphasis on effectiveness and reduction of costs. This demonstrates that Ron did not consider the outcome of his decision. According to researchers, effective decision makers reflect and consider the outcome of their decision for a long period of time. If a persons frame is easily influenced, moral implications are applicable.

Conclusion
This paper has discussed the psychology of decision making and judgment. From the information presented in this paper, it can be concluded that it is important to make effective decision making in order to make a sound judgment.

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