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Biases and Judgments - Research Paper Example

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Biases and judgments Name Institution affiliation Tutor Date Biases and judgments Biases and judgments have the same implication in an organization which is decision making but, they have different explanations in the process of decision making. Bias refers to the unfair influencing of choices, attitude or even decision making…
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Biases and Judgments
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Download file to see previous pages Judgment is the best management tool since many ideas are put into perspective thus having a high probability of making a decisive decision. The purpose of this study is mainly to determine the effects of application of both judgment and biases to an organization. Studying the purposes gives the opinion on the best management tool. According to Grise and Gallupe (2000), the effectiveness of management is determined by way of decision making. It is an obvious assumption that judgment is a better way of decision making than biases. Biases are ill painted because it may be used to cover an individual interest at the expense of the organization. In this paper, the hypothesis applied is that biases lead to inequality in organizations. Managers who choose bias over judgment are likely to make mistakes. There are several types of judgment and biases; information, cognitive, risk and uncertainty biases. From the four examples above, all form part of the dependent variables apart from the information biases. Information biases are the primary cluster filters and influences that influence decisions. This is for the reason that, when selecting amongst decisions, judgment makers at most instances instinctively misrepresent information. This is recognized as interest bias, optimism, conclusion bias, significance bias and self interest thinking. Information bias can also alter how the search of information usually is undertaken. Paucity of appropriate information, the staff in an organization may fail to do the right but without their knowledge. This consequently provides room for certain individuals or groups to fulfill their self interest. During decision making certain information may be ignored or added to achieve a specific outcome. This can be done by a trait known as illusion control. The illusion control is where judgment makers overrate the degree to which the outcome of a verdict is on their hands, and their capability to correct or repair harms should they come up as a consequence of a verdict. Additionally, there is an overrating of the personal abilities of the judgment maker to make the verdict. This type of bias tends to benefit persons who have achieved success in decision making. Decision makers influenced by this bias have a tendency to center their attention on the sections of the decision they can manage and ignore the factors that display uncertainty (Irani and Love, 2001). They also overrate their own responsibilities in order to assure themselves in case any form doubt comes up. Risk biases include the third set of choices and influences that take action on the decision procedure. These biases mostly take action on decision options which are aimed at reducing risk all through the decision making process. The awareness of risk shape decision results because a high percentage of the information and cognitive biases used by judgment makers are as well used to lessen the risk. Predictable choice making theory proposes that, choice is a mixture of risk and likely gains. Judgment makers, who are risk reluctant, go with options that have less possible gains, slighter options of results with less risk. Decision creators who seek risks go with options that potentially offer higher interests, although with better variation in results the higher the risks. Mangers tend to take risk more frequently when they come up with the decision individually than group thinking is ...Download file to see next pagesRead More
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