6. Decision Making (2) Flashcards
What factors may impact on decision-making ability?
- Escalation of commitment
- Availability/unavailability bias
- Confirmation bias
- Optimism bias
These biases are perpetuated in group situations –> groupthink, conformity, diffusion of responsibility
How can we overcome biases in groups?
Through setting up systems and team processes
What is ‘conformity’?
Tendency to conform to the group due to pressure and distortion of the way we perceive information.
In ambiguous situations, when we are unable to determine the appropriate mode of behaviour, we assume the actions of others reflect correct behaviour for a given situation (i.e. social proof and descriptive norms)
Define ‘groupthink’
Group members try to minimise conflict and reach a consensus decision without critical evaluation of alternative viewpoints
What are symptoms of ‘groupthink’?
→ Overestimation of the group: illusion of invulnerability; unquestioned belief in the group
→ Close-mindedness: rationalising warnings that challenge group decisions; stereotyping those who oppose the group
→ Pressures towards uniformity: self-censorship; illusions of unanimity; direct pressure; mindguards
How do hierarchies and silos impact on decision-making in organisations?
- Information is filtered as it moves up through hierarchies – sensitive or embarrassing information is withheld or glossed over. And those at the top inevitably receive incomplete and distorted data
- Organisational silos not only disperse information: they also disperse responsibility. In some cases, everyone assumes that someone else is taking responsibility, and so no one ever acts
What is diffusion of responsibility?
Everyone is waiting for another person to do something first, e.g. lots of people walking past an unconscious person.
Why must we be especially careful of biases in organisations?
Organisations help perpetuate individual and group biases
Within organisations, what may further enable biases?
Leadership style, e.g. Dr William Lucas of NASA → zero tolerance for dissent.
What leadership traits risk perpetuating bias?
- Diminishing Others’ Knowledge: Tendency to seek out opinion and facts that support own beliefs and hypothesis: This perpetuates CONFIRMATION bias.
- Dismiss people with a different belief or opinion: „they are incompetent…“, “they don’t understand…”
- Reward optimism and interpret pessimism as disloyalty
- Don‘t really listen; waiting to counter-argue
- Subtle signals that their mind is already made up
How does the default, “winning” mindset influence decision-making?
- Selective use of information (some information is suppressed, never heard)
- Egos come into play
- Assumption: Superior solution will emerge from test of strength
- Resolved through battle of wills and behind-the-scenes manoeuvring
How can leaders help overcome biases?
Leaders should be MULTIPLIERS:
The best leaders amplify the smarts and capabilities of the people around them
➢ ASK probing questions rather than offering all answers
➢ LISTEN: with purpose (not preparing counter-argument)
➢ Promote debate: split groups to fight for different cases
➢ Challenge the absence of disconfirming evidence
➢ Encourage dissenting views
➢ Beware! subtle signals, “no bad news approach” indicaties your mind is already made up
Compare the advocacy (traditional) and inquiry (preferred) approaches to decision-making
ADVOCACY:
a contest, discussion involves persuasion and lobbying, participants as spokespeople, striving to persuade others and defend your opinion, dismissing/discouraging minority views, outcome is winners and losers
INQUIRY:
a collaborative approach to problem-solving, discussion is for testing and evaluating, participants as critical thinkers, balanced arguments, open to alternatives, accepting of constructive criticism, minority views cultivated and valued, outcome is collective ownership
How can we model the process of decision-making?
With the “Three Cs” approach
What are the “Three Cs of decision-making”?
- Constructive conflict
→ Cognitive vs. Affective conflict
→ Establish norms: Avoid people reacting defensively – Language rules
→ Ask people to examine underlying assumptions - Consideration
→ The people participating in the process must believe that they had a genuine opportunity to influence the decision (procedural justice perceptions)
→ Listen actively and show willingness to accept views that differ from their own - Closure
→ Beware of deciding too early
→ Beware of deciding too late
→ Leverage collective thinking – does not necessarily mean absolute consensus
