Download the podcast to hear Professor Baba Shiv discuss how emotions influence decision-making and why women are better at making decisions than men

Key points:

1. What is a decision? You choose one direction over another, but there's no looking back - you should put all your resources behind the course of action you adopt.

2. Emotions are key to decision-making. Baba Shiv cites research on patients whose emotional circuitry has been damaged and who are unable to make decisions. If a "normal" person is out of touch with his or her emotions, a similar kind of indecisiveness will be exhibited.

3. Vulcans and emotionals. "Vulcans" are more analytical and are not as good at making decisions as those who use more emotions in the process. However, emotions can sabotage decision-making and there are certain situations where the rational system needs to take over. Fear, for example, can adversely affect our decisions.

4. Commitment to a decision is critical. This is especially true for managers who can make a decision and show commitment to it, thus signalling "follow me" to their employees.

5. Vulcan behaviour can be forced. The person forces emotions out of the equation – in career decisions, for example. The more you force out the emotion, the less able you are to make up your mind. You need to get the information you need, but at some point when you have all you requre, you need to rely on your gut instinct.

6. Price can influence the emotional experience. HIgher price signals quality, signals pleasure and therefore stimulates more emotion, but focus shouldn't be on price per se, but what gives more satisfaction. Therefore, the more you can get consumers to focus on brand, rather than price, the better the experience for the customer.

7. How to motivate. Research suggests that desperation (fear) is good for getting people to do something, but when motivation drops, unexpected rewards are key to keeping people motivated. The reward doesn't have to be financial - a pat on the back will do, but it has to be unexpected.

8. Women make better decisions. They are generally more committed because they are less "Vulcan" than men, but they make worse decisions when it comes to relationships. Simultaneous options (three or four options presented at once) are usually better for making decisions than sequential ones (those presented one at a time). The less well off are people who have sequential options. People are optimists; they think that the future is going to be better. This hope causes a delay in decision-making and because women tend to be more emotional, hope and fear is much more intense. The more options we have, the more we feel overwhelmed.

Professor Shiv will also lecturing on Creating Emotional Engagement with Customers and Employees, December 17 and 22 in India.Click here for details.

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