Question

In: Finance

are you surprised that what most citizens believe is an analytical process based on "numbers", facts,...

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"?

Solutions

Expert Solution

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.


Related Solutions

What responsibilities do you believe people have as citizens in our global economy?
What responsibilities do you believe people have as citizens in our global economy?
What is a hypothesis and discuss what you believe to be the most critical element in...
What is a hypothesis and discuss what you believe to be the most critical element in the procedure for testing a hypothesis?
What is a hypothesis and discuss what you believe to be the most critical element in...
What is a hypothesis and discuss what you believe to be the most critical element in the procedure for testing a hypothesis?
What benefits does Hamilton believe that individual citizens of the United States will accrue as a...
What benefits does Hamilton believe that individual citizens of the United States will accrue as a result of the establishment of such credit? What examples does he give?
Emerson Process Management, a global supplier of measurement, analytical, and monitoring instruments and services based in...
Emerson Process Management, a global supplier of measurement, analytical, and monitoring instruments and services based in Austin, Texas, had a new data warehouse designed for analyzing customer activity to improve service and marketing that was full of inaccurate and redundant data. The data in the warehouse came from numerous transaction processing systems in Europe, Asia, and other locations around the world. The team that designed the warehouse had assumed that sales groups in all these areas would enter customer names...
Pick a market that you believe exhibits the characteristics of an oligopoly. Based on what you...
Pick a market that you believe exhibits the characteristics of an oligopoly. Based on what you have learned about an oligopoly, describe how the market you choose is an oligopoly. Do the firms co-operate, compete, or some of both?
Discuss if you believe that you are a team player. Based on what you have learned...
Discuss if you believe that you are a team player. Based on what you have learned regarding teamwork, explain why or why not. How can you improve your ability to function well on effective teams?
What means charge based separation method in analytical chemistry?
What means charge based separation method in analytical chemistry?
Summarize what you think to be the MOST important issue for U.S. business people/citizens to pay...
Summarize what you think to be the MOST important issue for U.S. business people/citizens to pay attention to in China. Issues such as: •Environmental concerns; air and water pollution •Social inequality, poverty, and unrest •Communist party & democratic freedoms •Political-military relationships
What things most surprised Mollie-as-Gerald? What point was Gilman making in this story? What did she...
What things most surprised Mollie-as-Gerald? What point was Gilman making in this story? What did she identify as the gender inequalities of the day? Do the stereotypes concerning women that Gilman illustrates in this piece exist today? If so, provide an example.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT