Understanding behaviour

Individuals base their behaviour not on the way their external environment actually is, but rather on the way they see it or believe it to be.

An understanding of the way people make decisions can help us explain and predict behaviour, but few important decisions are simple or clear enough for the rational model's assumptions to apply. 

We find individuals looking for solutions that satisfice rather than optimise, injecting biases and prejudices into the decisin process, and relying on intuition.

Managers should encourage creativity in workers and teams to create a route to innovative decision making.