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Rule of the thumb decision making process

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The English phrase rule of thumb refers to a principle with broad application that is not intended to be strictly accurate or reliable for every situation. It refers to an easily learned and easily applied procedure or standard, based on practical experience rather than theory. This usage of the phrase can be traced back to the seventeenth century and has been associated with various trades where quantities were measured by comparison to the width or length of a thumb. A modern folk etymology holds that the phrase is derived from the maximum width of a stick allowed for wife-beating under English law, but no such law ever existed. This belief might have originated in a rumored statement by eighteenth-century judge Sir Francis Buller that a man may beat his wife with a stick no wider than his thumb. The rumor produced numerous jokes and satirical cartoons at Buller's expense, but there is no record that he made such a statement.

Heuristics

Rule of the thumb decision making process
Rule of the thumb decision making process
Rule of the thumb decision making process

» Making “Rules of Thumb” Decisions

A rule of thumb is a heuristic guideline that provides simplified advice or some basic rule-set regarding a particular subject or course of action. It is a general principle that gives practical instructions for accomplishing or approaching a certain task. Typically, rules of thumb develop as a result of practice and experience rather than through scientific research or a theoretical foundation. Investors may be familiar with a variety of "financial rules of thumb" that are intended to help individuals learn, remember and apply financial guidelines. These rules of thumb address methods and procedures for saving, investing, purchasing a home and planning for retirement.

Decision Making

The rational decision-making process involves careful, methodical steps. The more carefully and strictly these steps are followed, the more rational the process is. Though this starting place might seem rather obvious, a failure to identify the problem clearly can derail the entire process. It can sometimes require serious thought to find the central issue that must be addressed.
Managers are constantly called upon to make decisions in order to solve problems. Decision making and problem solving are ongoing processes of evaluating situations or problems, considering alternatives, making choices, and following them up with the necessary actions. In other situations, the process can drag on for weeks or even months. Define the problem. One way that a manager can help determine the true problem in a situation is by identifying the problem separately from its symptoms.
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