Question

In: Operations Management

If every leadership situation is a unique mix of variables, what is the value of having...

If every leadership situation is a unique mix of variables, what is the value of having previous management experience? Wouldn’t “gut calls” and intuition be just as useful in decision-making? What are your thoughts?

Solutions

Expert Solution

Yes, every leadership situation is a unique mix of variables and a previous managerial experience definitely counts. There are many studies to prove it. This happens because managers create and accumulate an internal reservoir based on experience and expertise. When a manager combines his or her industry experience, organizational culture and professional exposure with the gut feeling to make any decision, then these kinds of decisions are very advantageous for the organization.

But there is a pitfall here. The gut feeling or intuition of an experienced manager must not be guided by emotions. But, it should be guided by reason. If the gut feeling is guided by emotions, the decision might not be always beneficial for the organization. So, managers can trust these kinds of intuitive decision-making only after following the below- mentioned four tests:

1) The Familiarity Test - Mostly, intuitions are build when you recognize a similar pattern from the past. So, while making decisions, you must look at the similarities but never discount the differences.

2) The Feedback Test - At times we have a reservoir of negative emotions as well because of our experience. They might impact our intuitions. So, as a manager, when you are making an intuitive decision, you must keep in mind this thing and reason things well. Moreover, you must concentrate on positive emotions related to the previous experience of decision-making because they support further decisions.

3) The Measured Emotions Test - While hearing your gut feeling, you must recall your previous decision and also measure how much emotion was involved in it. The lesser the involvement of emotions, the better it is for the present decision-making scenario.

4) The Independence Test - You must also test for any conflict of personal interest in the decision-making process.

if you follow these tests, your experience and expertise will reinforce your intuitive decision-making in the present scenario and this will act as a boon for your organization.


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