THE ROLE OF FRAMING IN MANAGEMENT DECISION-MAKING

Abstract

The article examines the impact of the framing effect on the process of managerial decision-making. Framing is defined as a way of presenting information that affects the perception of problems, evaluation of alternatives and decision-making. Particular attention is paid to the negative impact of an incorrectly chosen frame, which can cause cognitive errors and systematic biases, negatively affecting the performance of the organization.

The main theoretical concepts are considered, in particular, the theory of perspectives, which demonstrates the asymmetric assessment of gains and losses, and mental models, which form simplified ideas about reality. A practical example is presented to illustrate how stereotypes and mental models distort the evaluation of alternatives, contributing to the wrong choice.

The main factors that influence the strength of the framing effect are described, such as individual characteristics (risk aversion, experience, cognitive abilities), context (time constraints, social pressure), and task complexity. Practical aspects of the framing effect are explored on the example of risk management, investment evaluation, and strategy selection.

The conclusions emphasize the importance of creating an organizational culture that promotes critical thinking, objective analysis of alternatives, and fact-based decision-making. It is noted that further research should focus on studying the cultural peculiarities of framing perception and developing tools to neutralize its negative impact.