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Class 5 - Perception and Individual Decision Making

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15 views6 pages

Class 5 - Perception and Individual Decision Making

jjj

Uploaded by

Thiên Bảo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BIAS DESCRIPTION
Anchoring Bias Why we tend to rely heavily upon the first piece of information we
receive
Confirmation Bias Why we favour our existing beliefs
Endowment Effect Why we value items more if they belong to us
Framing Effect Why our decisions depend on how options are presented to us
Halo Effect Why positive impressions in one area influence our opinions in
another area
Hindsight Bias Why we view unpredictable events as predictable after they occur
Observer Expectancy Effect Why we change our behavior when we’re being watched
Ostrich Effect Why we prefer to ignore negative information
Salience Bias Why we focus on items or information that are prominent and
ignore others
Sunk Cost Fallacy Why we continue with an investment even if it would be rational to
give it up
Making
 Energy and Metabolism
 People differ in their ability to use different energy sources effectively and
efficiently.
 Personality
 Personality traits like conscientiousness influence our decision-making quality.
 Intelligence
 Higher IQ better allows people to overcome many decision-making errors.
 Gender
 Women are more likely to ruminate than men – (more likely to overanalyze
problems before making a decision and to try to change a decision once it has
been made).
 Men are more likely to make impulse decisions than women – (more likely to make
risky decisions with low information based on perceived short-term gain).
 Cultural Differences
 Limited research available, but individual differences in cultural experience
undoubtedly influence decision-making in some way.
Making

 Performance Evaluation
 People may hide or withhold important information if it reflects badly on their
performance.
 Reward Systems
 The rewards and incentives in an organisation influence how “rationally” decisions
are made.
 Formal Regulations
 Most organisations have rules and norms which restrict the range of possible
decisions.
 Time Constraints
 Time is always a factor in decision making, but organisational deadlines are an
additional factor that influences perceptions of time.
 Historical Precedents
 “Decisions made in the past are like ghosts that haunt current choices.”
Making
 Three criteria for ethical decision-making:
 Utilitarianism: “The greatest good for the greatest number.” (e.g. productivity;
profitability)
 Deontology: Protecting basic rights of individuals (e.g. due process for employees)
 Justice and fairness: Costs and benefits distributed in an equitable manner.

 Leaders have to make the “right” ethical trade-offs for a particular


decision.
 Different ethical standards in different cultures change the decision
dynamics
 Using the 3-Component Model of Creativity for better decision-
making:
 Expertise: The potential for creativity is enhanced when individuals have abilities,
knowledge, proficiencies, and similar expertise in their field of endeavor.
 Creative-Thinking Skills: The ability to use novelty and analogies as thinking
tools.
 Intrinsic task motivation: The desire to work on something because it’s
Fair and Inclusive Decision Making

 When a group is cooperative and includes multiple perspectives, better


information is used to make decisions.
 Cooperative groups make better decisions than individuals, and divergent
perspectives often reflect the different risks and opportunities involved in the
decision.
 Inclusive decision-making systems are more resilient over time because they
are less dependent upon individuals and their specific preferences.
Fair and Inclusive Decision Making
 Psychological flexibility helps make sharing decision-making
power a lot less threatening. It can help people be OK with the
discomfort of disagreements and bold decisions, to be less
attached to defending their positions and identity, and to feel
empowered to readily step up to make decisions to influence their
own circumstances.
 Decision making is about commoning:
Enable those who have the urgency to take the initiative to
make proposals to actually make them.
Move authority to whomever has the best information,
provided they are willing to take the authority.
 If we are creative and intelligent, we can come up with better
ways to make decisions that include everybody who is affected by
the decisions.

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