In: Finance
are you surprised that what most citizens believe is an analytical process based on "numbers", facts, and "financial planning" turns out to be part politics, part emotion, and part interpretation (or misinterpretation on purpose) of the "numbers"?
Answer
No, it is not surprising as it is not necessary that analytical process would always be based on numbers, facts and financial planning. Individual psychological process, social and political factors impacts the process of organisational decision making. While humans should make logical choices, they largely base what they know and decide on their emotions. Emotions might be unpredictable and personal but they’re more powerful than any logical explanation for a decision. So at the point of decision, emotions are very important for choosing. In fact even with what we believe are logical decisions, the very point of choice is arguably always based on emotion.
Analytical process is highly based on personal interest. Financial planning and numbers are moulded according to the suitability of the analyst. Political factors such as ruling party, government policies, etc also impact the process of analysing as these factors determine options available and performance of an organisation. Many times numbers are intentionally misinterpreted or partly interpreted by an analyst. For example, data can be misinterpreted for showing good picture of an organisation. Infact, it is the human nature to seek personal interest. So, these elements play a major role in the process of analysing.
Hence, emotions and other factors can't be separated from the logical interpretation or anaytical process. Factors such as emotions, politics, self interest, etc make an analytical process subjective.