Heuristics In Business: Logical Shortcuts

Heuristics is a common sense rule which is used for solving problems and helps in decision making. It is a faster technique as compared to all the computing and calculations. Some examples include rule of thumb, an educated guess, effort heuristics, similarity heuristics, simulation heuristics and stereotyping etc. The most common one is trial and error method which can be used in everything. The best way to find out whether the plan will work or not is to try it. In some cases the person will try this technique with some initial calculations or outcomes but still there is a risk of failure of the plan. In business if this technique works the outcome will be in the form of profit but if this technique fails the company will have a huge loss.

People in business need to think logically before implementing any idea and the idea should be realistic as well. If the idea is not realistic and logical there is a risk of loss in business. Most businesses want their employ to come up with the solution that will make difference. People having larger businesses may not have time to look into each and every solution but still this technique is a part of businesses. Also, if a person has found solution it doesn’t mean it will solve the problem.

Companies have group of expert people who find out the solution with this technique and know the outcomes of this technique as well. They are responsible if anything goes wrong. Most shortcuts are temporary that is why companies are willing to apply them on trial and error basis. The outcomes from any of the idea or technique influence the future decisions as well.

As already discussed that future decisions depend upon past decisions and the level of satisfaction as well if especially the decisions can be reversed. The decisions also depend upon the reversibility factor as well. People generally prefer making decisions which are reversible but it is not necessary that reversing the decision will lead to positive outcomes. However, we should not forget that expected outcomes while making a decision depends upon individual perceptions. Even when, a person has no doubt about the outcomes of a business decision there are still chances of getting a result which is below the standard conditions.