Fallacies in Decision Making From an Asian Perspective

Introduction

Irrational employee behaviours can sometimes cause cost huge financial losses for the firms (Scandura, 2015; Stuckless, Ford, & Vitelli, 1995). Rational employee behaviour is encouraged in an organization, however, in reality, the employee behaviours/ decisions at work are made on the subjective experience of the employees (Khresna Brahmana, Hooy, & Ahmad, 2012). In an organization, employee learn about their work by drawing casual inferences based on the observations and experiences in the organizations. Various events happen in an organization at the same time or in the same period. Sometimes employees tend to interpret this casually un-related event as related and change their behaviour. Irrational decision making is the tendency to decide a course of action based on the irrational belief of employees towards various phenomenon that is happening at the workplace. Such irrational behaviours are common in developing countries like India; however, potential exists that even in developed countries also irrational beliefs will play a role. This is a complex or multi-dimensional phenomenon. It may influence an employee’s individual’s perceived level of confidence(De Paola, Gioia, & Scoppa, 2014). Irrational decision making behaviours, can change an assortment of human behaviours either positively or negatively(Ng, Chong, & Du, 2010).From the allocation of economic resources(Ng et al., 2010) to major personal events (Shermer, 2002), irrational decision making behaviours impacts different spheres of human behaviours.