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The Use Of Heuristics In Business Decisions

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  • Radu ATANASIU

Abstract

In today’s business environment, the game changes incredibly fast, new types of challenges arise more and more often, assessing unfamiliar context and making decisions under uncertainty becomes a daily routine for any manager. Therefore, heuristics (viewed as simple decision-making algorithms) can be a useful tool for many categories of business professionals. This paper provides a review of the different ways that the scientific community analyzes heuristics in business, focusing particularly on the conscious (rational) vs. unconscious (irrational) approach; it draws upon the analogy between heuristics, proverbs and memes (as defined by Richard Dawkins) in their capacity to replicate and adapt; it also discusses, based on a narrow scope research on Romanian business professionals, the limits of heuristics and also the favorable conditions under which heuristics can become decision rules shared throughout the organization.

Suggested Citation

  • Radu ATANASIU, 2017. "The Use Of Heuristics In Business Decisions," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(1), pages 1046-1053, November.
    • Handle: RePEc:rom:mancon:v:11:y:2017:i:1:p:1046-1053
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    References listed on IDEAS

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    1. Manimala, Mathew J., 1992. "Entrepreneurial heuristics: A comparison between high PL (pioneering-innovative) and low PI ventures," Journal of Business Venturing, Elsevier, vol. 7(6), pages 477-504, November.
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