Heuristics in Business Decision Making

Heuristics in business decision-making are mental shortcuts that help people make quick, efficient choices without extensive analysis. They simplify complex problems by using rules of thumb based on past experiences or common sense. For example, a manager might rely on familiar market trends to forecast sales rather than conducting a detailed analysis. While heuristics can lead to fast decisions, they may also introduce biases or errors, making it important for businesses to balance intuition with thorough research to enhance their decision-making process.