Corporate Influences - Evidence-based versus subjective decision making - 3.4.1
Evidence-based (scientific-based) decision making - where a business makes strategic decisions after analysing and evaluating relevant evidence. Businesses will make full use of quantitative sales forecasting, decision trees, investment appraisals and other methods that help quantify any decision being made. Subjective decision making - is less structured and more about the experience and intuition of the business's owners and managers. Decisions from this perspective may require a more entrepreneurial, risk-taking managerial approach. Subjective Evidence-Based Based on intuition, hunch, gut feeling and experience Based on evidence and data Quicker decisions can be made Outcomes can be simulated or tested in advance May be necessary in a fast moving environment or to avoid missing opportunities Decisions are objective Dominant leaders may push decisions forward, leading to a ...