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One way of thinking holds that the mental process of decision-making is (or should be) rational: a formal process based on optimizing utility. [1] Rational thinking and decision-making does not leave much room for strong emotions. [2] In fact, emotions are often considered irrational occurrences that may distort reasoning. [3]
Emotional choice theory assumes that emotions are not only social but also corporeal experiences that are tied to an organism’s autonomic nervous system. People feel emotions physically, often before they are aware of them. It is suggested that these physiological processes can exert a profound influence on human cognition and behavior.
The affect heuristic is a heuristic, a mental shortcut that allows people to make decisions and solve problems quickly and efficiently, in which current emotion—fear, pleasure, surprise, etc.—influences decisions. In other words, it is a type of heuristic in which emotional response, or "affect" in psychological terms, plays a lead role. [1]
Heuristics (from Ancient Greek εὑρίσκω, heurískō, "I find, discover") is the process by which humans use mental shortcuts to arrive at decisions. Heuristics are simple strategies that humans, animals, [1] [2] [3] organizations, [4] and even machines [5] use to quickly form judgments, make decisions, and find solutions to complex problems.
Emotions have been categorized, with some relationships existing between emotions and some direct opposites existing. Graham differentiates emotions as functional or dysfunctional and argues all functional emotions have benefits. [29] In some uses of the word, emotions are intense feelings that are directed at someone or something. [30]
Knowing how to suppress and manage one's own feelings is known as emotional intelligence. The ability to control one's emotions and to be able to do this at a high level guarantees one's own ability to serve those in need. Emotional intelligence is performed while performing emotional labor, and without one the other can not be there. [37]
Potential hedge fund billionaire managers make investment decisions based on sound analysis. They avoid action on emotional reactions Developing a strong team and a teamwork environment .
Emotional intelligence (EI), also known as emotional quotient (EQ), is the ability to perceive, use, understand, manage, and handle emotions.High emotional intelligence includes emotional recognition of emotions of the self and others, using emotional information to guide thinking and behavior, discerning between and labeling of different feelings, and adjusting emotions to adapt to environments.