Discussion Post: Biases in Decision Making Process
Making and executing decisions is essentially what management is all about. Therefore, the importance of making smart decisions can not be understated in business and indeed in life. Making decisions mostly involves intuition and instinct, which are susceptible to many biases that can cloud a person’s decision-making process. Factors such as the subconscious, life experiences, feeling and emotions, and the skills and knowledge that a person possesses all come into play when making decisions. Smart decision making involves filtering through all these factors and making decisions that are objective and in the best interests of the company in question.
Many common biases affect our day to day decisions. I agree with the reading that overconfidence is the mother of all biases. Overconfidence is the reason people do not double-check their choice or even accept advice before making decisions. I think over-precision is the most common form of overconfidence that affects the contemporary decision-making process. Also, in this age of technology, one of then other causes of bias is our social and professional networks. Naturally, people are inclined to show favoritism to people they know and trust, and in the process, they end up making biased decisions. The best remedy for this is always to seek a second opinion and take an outsider’s view of the situation before making a final decision. There are, of course, bounds in judgment in terms of rationality and willpower that vitiate the decision-making process. However, in spite of the effect of these biases, it is still possible to make smart decisions by employing techniques aimed at reducing the impact of these biases. Acquiring expertise, taking the outsider’s view, and using the available decision-making tools can go a long way in ensuring that we make sound decisions.
Response
One of the main biases that are likely to affect a person’s decision making is the influence of social and professional networks. In the contemporary corporate world, networks are vital. One’s system is reflective of the individual’s net worth is a familiar aphorism that alludes to the importance of having a professional system of people who can help a person out in their career. A person’s network, therefore, has a significant influence on a person’s decision making because people in a network tend to trust each other and believe in each other’s ability. This bias towards people in my professional network once affected my decision-making process. I once owned a food truck, and after I got an internship, I had to find a person to help me run the food truck. Because the food business is very sensitive, I needed someone competent and trustworthy. Another food truck owner who was part of my network vouched for someone, and because I trusted my network, my first instinct was to appoint the recommended party. However, after receiving advice from my brother, I decided to make an advertisement post and invite people who were interested in the interview where I got a very competent and trustworthy employee.