How to Avoid Subjective Judgment in Business
[ad_1]
A never ending flow of reports detailed with colorful charts, graphs and oodles of digits is the first thing that comes to mind as soon as we hear the word "Data". Its importance can neither be denied nor misunderstood. This is because 'management is a science as well as an art', and data is what drives every logical and scientific basis towards information and information.
With each passing day, organizational databases are increasing in number and capacity, and in this situation, the key lies in the efficient management of this data. This combination has led to the widespread use of concepts like data mining and warehousing. Data mining efficiently uses stored information for the purpose of analysis potentially potentially profitable associations in minority patterns and trends, constantly delving into new ways of making all of this data a valuable asset rather than just a useless expense.
The immediate advantage of this approach is the elimination of subjectivity from our information related decisions. This is because we can not ignore the clear indications from figures. Too much focus on these facts and figures can bring about a loss of departmental cohesion, causing an organization to fall apart, however, a careful application of this information can produce incredible gains. The implementation of any system based on calculation requires that the data be unbiased, statistically accurate, accurate, complete, current, non-redundant, and reliable in the required framework.
A Data based method removes stereotyping and pre-conceived ideas, filtering out the not-so-useful applications from the profitable ones. Facts and figures lead to objective judgment – without leaving any room for prejudice. This "Technical Analysis" method uses past figures to predict the future ones, and having been widely recognized as a valuable system in the stock markets, Forex and the commodities markets, it's used today for predicting the probable volume of trading and share price by using past archived values.
The same principle can be very insightful in any judgment of human performance. As we all know, first impressions are rarely accurate. There are often cases where an individual does not seem to be useful or productive, but then surprisingly, performers better than the rest. Or in another example, there might be an occurrence where someone who is thought of very highly by others, fails when it actually comes to actually doing a job. Here we can see that subjective impressions – unlike the accuracy and reliability of performance data, can often fail to yield any sort of consistently expected results.
In conclusion, a data based approach is definitely better than any form of subjective consideration as the former eliminates any unfounded beliefs which were formed without reason, and it does – so to speak, 'hit the nail right on the head'.
Copyright (c) 2009 Alan Gillies
[ad_2]