Author:
Bagodi Virupaxi,Mahanty Biswajit
Abstract
Purpose
– The purpose of the paper is to demonstrate the short comings in decision-making in a complex system. An approach to coping with a complex decision-making task is to identify generic structures known as systems archetypes in a given decision situation. In the “shifting the burden” archetype, decision-makers fail to identify the fundamental solution early and are subjected to accumulated side effects as they resort to quick remedial solutions.
Design/methodology/approach
– A system dynamics-based game has been built to highlight the pitfalls of “shifting the burden” systems archetype for a decision-making situation in the Indian two-wheeler industry. Participants of the game make strategic decisions for a company and receive feedback of their decisions and corresponding actions after every plan period.
Findings
– The decision-makers who adopt short-term measures to alleviate the company’s problems, invariably fail in their endeavour. Success comes to those who realize the importance of having a long-term perspective in the form of pursuing fundamental solutions.
Practical implications
– What could be a possible way of avoiding the pitfalls? The decision-makers should be aware of the pitfalls beforehand and identify the same – a decision support system possibly can aid them in this regard.
Originality/value
– The complexity of the system increases as the business grows. The managers need to adopt systems thinking and embrace a long-term perspective. Decision support systems integrating models of systems archetypes provide an environment to simulate various decision situations and see the effects beforehand.
Subject
Management Science and Operations Research,Strategy and Management,General Decision Sciences
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