The President with the United States could be the "Chief Executive," charged in principle simply with executing the will of Congress as expressed in law. In fact, however, the role on the President, of CEOs, and of other "executives" is not merely to execute decisions, but, overwhelmingly, to generate them. Congress passes laws, but any observer of national politics will probably be aware that the President sets the national agenda. Likewise, boards of directors are, notoriously, virtually often mere instruments inside hands of corporate chief executives.

The incredibly daily jobs of these men and women consists nearly entirely of generating decisions always "on the fly," without having time for an extensive planning process. CEOs had been discovered to be often supervising up to fifty several projects at a single time, every of which required executive decisions (Mintzberg, 1990: 171). Setting directions just isn't the same issue as "planning" (Kolter, 1990: 104). The planning process, for these executive choice makers, did not take in place in a couple of week retreats, but was implicit in their choice actions (Mintzberg, 1990: 164 65).
In the jobs of successful executives, especially, a fluid high quality is observed. Inside the world of business, a very good several "rules," aphorisms, slogans, as well as other handy guides to decision making have evolved.
Even if humans did behave "rationally" in probabilistic situations, that would not solve the central problems of choice making. Most decisions don't take a simple probabilistic form. The much more important the decision, often, the less is is also subjected to quantitative analysis of any sort.
All of these biases in our heuristics are simple reasoning or perceptual errors. The remaining errors, value biasing and overconfidence, have overtones of ego involvement. Importance biasing stands out as the tendency to overestimate the likelihood of results we regard as favorable, while overconfidence in oneself is really a self explanatory condition. All are errors wherever the executive decision maker, always required to produce numerous decisions with limited time and information, has a constant tendency to fall.
This is all the far more so as a result of the character of the most critical decisions. Quite a few decisions are subject to some type of analysis that can reduce the issues involved to pretty easy and clear terms. Industrial engineers, for example, can use their own well produced heuristics to predict with some accuracy the probably cost of a given plant. For several products, industry analysts can with some confidence predict the probably sales. But the a lot more crucial, strategic decisions are less open to this kind of quantitative analysis. Yet it is these "Type 2" situations the decisions to move into new industries, to take a chance with new technologies, to develop totally new techniques that have the most decisive impact on the decision makers, their organizations, as well as the globe at large. The chief executives we regard as most successful are the ones who make these decisions, where no simple rules apply, and make them correctly (Pelton, Sackmann, and Boguslaw, 1990: vii).
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