Sunday, March 10, 2019

MSLD 632 Module 9 - Role of Emotion in Decision-making



Role of Emotion in Decision Making



            Decision making process is often faced by a factual and rational process (Shiv, 2011), where the cognitive undeniable human trait is neglected. Shiv brings the emotion factor of the human cognitive ability to reality when it comes to decision making, specifically on the confidence aspect of the process.            

            Emotion is present in decision making on the consumer (buyer, student, cadet, follower and so forth) perspective as it is in the provider (seller, professor, sergeant, business leader and so on) perspective. No matter for how long the subject was neglected, neither how it still is condemned by some researchers, entrepreneurs, traders and the long list of the fact-only-based rational defendants, it is crucial that emotion is invoked in the decision-making process for persuasion and confidence purpose (Shiv, 2011). Hence, in order to have anything like a complete theory of human rationality, we have to understand what role emotion plays in it (Simon, 1983).

Reflecting on my own experiences related to emotions and confidence, and can recall two situations, one in which I was extremely confident of the outcome, and a situation in which I was less confident of the outcome.



High Confidence Experience

            Ten years ago, I decided to shift my career from the hospitality field to aviation, and I faced a challenge in this decision-making process. The general manager of the hotel I was working in that moment, when I asked my resignation, disapproved my decision. He mentioned that I have been promoted twice in the period of six months, and the last promotion happened one month before my resignation. It was a new position in that branch, and a prosper one, which could open several doors for me in the company and in the field in general. I was quality inspector, responsible also for customer satisfaction, service recovery, preparing the hotel for internal and external audits, and analysis of the rooted issues with proposal of solution to headquarters.

When he approached me with his disapproval arguments I have had already challenged myself with the same arguments. I was leaving this position to be a flight attendant.  I got information from people in the aviation field, I did my researches on where my new career, and challenged my medium and long goals as a professional, and apart from all this, I really wanted the shifting. I wanted to have different perspectives from different background, I wanted to impact on more people’s lives in a daily basis, I had my personal dreams also of travelling and learning new languages. In the meeting with him, on the day I received the invitation of a domestic airline to join the company, he tried to convince me of his reasons, and I ended up convincing him.

I had my factual arguments, which made him doubt of his (at least looked like by his facial expressions), but when I put my emotion on the arguments, and all my personal reasons also, he had no arguments left and wished me good luck. I believe that what made the shift on his mentality was the passion and the confidence I had in my speech on that meeting. there were some information cascades influencing his decision on that point and I made a conscious decision, and I knew what I was risking, what I would perhaps miss, and knew the possibilities waiting for me. I was fully confident at that point and my attitude reflected as so.



Low Confidence Experience

            Last week I was buying and selling used furniture and house décor. As I mentioned before in discussions and blog posts, I am a horrible negotiator when it comes to monetary value. I am not comfortable at bargaining, and I am not even too attached to money, so I easily influence by persuasive “traders”. Selling my couches, I advertised based on the second market prices, their conditions and design. I ignored the utility factor and how much I would spend to get another sofa set. The price I accepted on the offer was lower that I believe today that could be. I was not just showing insecurity on the sale, but I mentioned that I was not sure on the decision of selling, although I had accepted the deal already on the price. As soon as I trembled, I got a call from the buyer, setting up the time to pick up the couches, and as insecure I was, just accepted and went with the flow of the negotiation set by the buyer.

            On the same week, as a buyer, I was in doubt of my purchase on the second-hand home décor. Clearly in doubt, the seller pushed me on the time argument, stating she had an appointment and didn’t have much time for my indecision. I spend 10 minutes looking at it, and finally bought them, still doubting while driving back home. 

Learning Outcomes

            There are several learning outcomes of these two experiences, but on the subject matter, my main learning point is that when someone lack confidence, the other party on the negotiation process can use it as an opportunity to “win” the deal. I believe the same applies when trying to sell an idea, to influence a follower, and in any other situation where confidence plays a crucial role. Emotions reflect in confidence, and confidence is one of the defining point of the a successful outcome.

References

Shiv, B. (2011). Brain Research at Stanford: Decision Making. Retrieved from https://www.youtube.com/watch?v=WRKfl4owWKc&feature=youtu.be, on March 09th, 2019.
Simon. H. (1983). Reason in Human Affairs. Stanford, CA: Stanford University Press

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