Cognitive Biases and Strategic Decision Processes - Assignment Example

 This paper focuses on the modes of avoidance, and the logical incremental modes of decision-making process are influenced by the four types of cognitive bias. This process is done because cognitive biases always exist in the decision-making process and it is only after identifying them that we will be able to understand and assist managers in accomplishing their goals. The logical incremental mode is a strategic and continuous process that uses frequent and subsequent adjustments when solutions to certain challenges are being sought.

This mode however, is done in a reasonable pattern and is not dramatic and is aimed at fulfilling the bigger objective. The actions done or applied to this mode require the compression of larger problems into smaller ones that can be managed easily (Das & Teng, 1999).For example, A Bata Shoe sales manager will solve the problem of reduced sales by first vetting the branch supervisors and thereby motivating the salesmen etc. which are easier tasks to accomplish but will affect the end result.

The avoidance mode, on the other hand, entails the outlining of the strategic decision-making process with the aim of impressing authority. The main aim is to maintain the status quo and avoid change. Basically, the avoidance mode applies the use of elaborate recognition of new problems that would render any new changes unnecessary (Das & Teng, 1999). It is the finding of the problem that kills the change necessitating problem. For example, instead of a Walmart manager hiring more sales assistants, he will look at the existing staff and identify employees who are under-tasked so as to prevent the decision of hiring new workers.

MODE 1MODE 2BIASAvoidanceLogical incrementalistBIAS 1Prior hypotheses and focusing on limited targetsSince the manager is main aim is to maintain the status quo, and he will be more susceptible to the application of prior hypotheses.He will basically protect his status with all he has (Das & Teng, 1999).Bias does not match.The mode’s logic calls for accuracy and knowledge of all target of the decision-making process.Bias 2Exposure to limited alternativesWhen the manager is solely focused on maintaining the status quo, they are more likely to be exposed to limited alternatives.

This is because the manager is not open to other alternatives but is only keen on maintaining his status.Bias does not match.The logical incrementalists not limited to one but uses different alternatives to tackle specific challenges.BIAS 3Insensitivity to outcome probabilitiesWhen the manager is focused on maintaining his status quo he is more likely to ignore all other estimates and outcome probabilities.Bias does not match.The manager considers the overall objective and each has different strengths that will consequently affect the overall objective.

Therefore, he can’t afford to be insensitive.BIAS 4Illusion of manageabilityBias does not match. The avoidance mode calls for avoidance of challenges and as a result there are no outcomes to be managed and the manager has no illusions of such.This bias would influence decision making as divisions are manageable levels and this gives the illusion of manageability.Specific attention would also be paid to possible outcomes of the specific tasks.The more this mode is used in the decision-making process, the more manageable the task will appear.

BibliographyDas, T. K., and Bing‐Sheng Teng. "Cognitive biases and strategic decision processes: An integrative perspective." (1999): 757-778. http://aux.zicklin.baruch.cuny.edu/tkdas/publications/das-teng_jms99_cognitivebias_757- 778.pdf