Why do we make Poor Decisions?

 

This is a 'stand alone' post and can be read separately. On the topic of decision making, we also covered 'Understanding your Decision-Making Process' we recommend you read that post first as will give more insights and some references we will use in this post.

Why do we make Poor Decisions?

We humans, like to believe we always make good choices, weigh every option, use every rational argument and always choose the right option. Thinking that we are rational humans, contradicts the idea of making bad decisions.

Well, is normal oftentimes we make bad decisions because of the over-complicated process that happens in our minds. Don't worry in this post we are going to identify and analyse the common obstacles when it comes to decision-making. We will discuss in-depth the following:

• Unmanaged emotions
• False Sense of Urgency
• Lack of Urgency(Procrastination)
• Overoptimism
• Loss Aversion
• Concerns Regarding Our Public Image

Unmanaged emotions

Emotions play a huge role in the decision-making process as we discussed in the previous post. Please check it out if you haven't: 'Understanding your Decision-Making Process'.

Is unavoidable the use emotion, however, bear in mind that emotions are like a double edge sword when it comes to decisions.

The good edge of the 'sword' is that emotions make us aware of what we feel towards a situation and understand our circumstances. Being more aware gives us the upper hand when we take a decision.

The bad edge of the 'sword' is that if we fail to manage our emotions, we will become more concerned with the negative outcomes of our decisions. If we become fearful in the process we risk being more focused on threats' impact rather than rationally analysing the information.

Do not let this happen as your decision-making will degenerate into a fight or flight response.

False Sense of Urgency

Have you ever felt being compiled to act than to deliberate, we all have. This means we prioritize action over contemplations, this is a false sense of urgency.

However, sometimes there are real external factors of urgency such as deadlines, these factors will spring us into action mode and we will have to take decisions. Is important to realize if there is a real sense of urgency or is just in our minds. A false sense of urgency is created from impatience, busyness sense and impulses. 

The problem with the false sense of urgency is that we do not give ourselves time to think it through, we are prone to be more radical decisions which sometimes will lead to terrible choices. Keep in mind that if you do not have any external pressure to make a decision now, is better you contemplate the matter.

Lack of Urgency(Procrastination)

As you might guess, this is the opposite of false urgency. It can cause the same unwanted effects as the other.

When there is a lack of urgency we are all tempted to fall into the trap of procrastination, Why would we hurry if there is no need? When we procrastinate we manifest an emotional response to our circumstances, many times the decision we have to take makes us feel bad in some way. This can range from the boardroom, anxiety, doubt, lack of skill, and difficulty to make as all variables must be considered.

Procrastination will never come unaccompanied, always come with fear, guilt, low self-esteem and sometimes even shame. These felling will make the decision-making process a lot harder.

Overoptimism

I am one of those people. Most people are naturally optimistic, they do not believe that some negative event will ever happen to them, this is called optimist bias. 

This is good trade somehow because the more optimistic we feel about making a decision, the less fear, doubt and anxiety we experience. The optimism bias will empower us to make decisions.

The downside of optimism is that it makes us too bold and irrational sometimes. As we will rush into deciding without weighing every option beforehand. Keep your optimism in check, this can lead you to make less accurate decisions.

Loss Aversion

We people love to acquire things we value, however, we are more prone to hate losing things we value. Take this for an example, you have bought a nice expensive suit, however, you have never worn it. When you bought this suit it made me feel special and give you a feeling of satisfaction. Well now imagine you have to throw it away or give it away, considering you've never worn it, won't make a difference in your wardrobe. Despite all these factors, you will still be highly resistant to making that decision.

As humans, we are prone to feel more intense the feeling of loss than one of the gains. Psychologists have called this phenomenon the loss aversions.

The loss aversion will impact your ability to make well-reasoned decisions. The fear of losing something impacts our rational judgement.

Concerns Regarding Our Public Image

This is a hard one, I was brought up in a culture where what other people think of you was very valued and always have to be on your A-game regarding appearances, behaviour and on and on. It took me many years after I left my country to realise that people do not even care about such things and are not my job to make everyone happy.

All humans care about what other people think of us, we like to think that other people see us, as resourceful, smart, beautiful, etc. This is a natural tendency from our ancestors, we want to fit in. If we do not keep this in check it can become obsessive and can start hurting the decisions we make.

When we lose control of this 'public image' we start making decisions based on how others will perceive us if we make this decision. 9/10 times nobody cares and it is your life, do whatever suits you. 

Being aware of this bias, in time will handicap your decision-making process.

Conclusion

I hope this post has helped you to understand why sometimes you might make take bad decisions.

Feel free to check the previous post on the Decision-Making process where I explained how we make decisions and what factors influence our decisions.

'Understanding your Decision-Making Process'.

 Thank you for reading.

Resources.

How to Make Better Decisions: 14 Smart Tactics for Curbing Your Biases, Managing Your Emotions, And Making Fearless Decisions in Every Area of Your Life!-Damon Zahariades