What are some of the drawbacks of having biases? Could there be any advantages to having biases? Explain. What are the implications for decision making?
A. Biases may lead to self assumed and irrational analysis of situations thereby resulting into superstitious decisions. When identified and understood, biases may help managers analyse and select various inputs from individuals/groups. Biases tend to limit the thought process of managers thus jeopardising their decision-making skills.
A. I would call myself an intuitive thinker. Systematic decision-making approach results in more robust solutions. Whereas, results based on pure intuitions might save on time but can be misleading. Latter approach may, however, prove more creative. Organisations need both
A. In today’s world of technological advancements where business has gone borderless and complex, it is humanly not possible to adhere to the conventional model. It is, therefore, economical to simplify the situation using bounded rational model and then follow the steps of rational model for making decisions which can give fine solutions, if not optimal.
A. Good managers make bad decisions when they let their personal biases uncontrolled or restrict their decision making skills because of organisation’s culture. Identifying and controlling biases, staying focused on objectives, overcoming inertia against change, and staying on guard against ‘Yes Man’ trap are few ways to improve decision making