“Poor” decisions in management?
I started reading this article just for the social significance. You’ve probably seen reports of it: it’s been much in the media.
However, I wasn’t very far in before I came across a statement that seems to have a direct implication to all business management, and, in particular, the CISSP:
“The authors gathered evidence … and found that just contemplating a projected financial decision impacted performance on … reasoning tests.”
As soon as I read that, I flashed on the huge stress we place on cost/benefit analysis in the CISSP exam. And, of course, that extends to all business decisions: everything is based on “the bottom line.” Which would seem to imply that hugely important corporate and public policy decisions are made on the worst possible basis and in the worst possible situation.
(That *would* explain a lot about modern business, policy, and economics. And maybe the recent insanity in the US Congress.)
Other results seem to temper that statement, and, unfortunately, seem to support wage inequality and the practice of paying obscene wages to CEOs and directors: “… low-income people asked to ponder an expensive car repair did worse on cognitive-function tests than low-income people asked to consider cheaper repairs or than higher-income people faced with either scenario.”
But it does make you think …