DECISION-MAKING, RATIONALITY, AND HUMAN ACTION

Abstract

Decision-making in organizations, due to its complexity, requires a systemic and rational process; however, there are mental traps called heuristics or cognitive biases, which make the individual ignore rationality, and decisions are influenced by experience, empathy, or desire of the decision maker. The objective of this empirical research is to identify the heuristics present in the decision-making of the executives of the ceramic industry of Norte de Santander, for which a quantitative, descriptive methodology was used, considering three key heuristics: representativeness, availability, and anchoring and adjustment. The results indicate that the decision makers present three types of biases, so it is necessary to be aware of this phenomenon and take actions to counteract the harmful effects on the organization