Abstract
An element of bias in any decision making process may be triggered off by various factors. One factor that can have a profound impact is the deeply ingrained value system of the decision taker. A conservative interviewer might find the dress of a lady candidate too ‘loud’ and that may color his decision to select the candidate. Such biases can at best be minimized and cannot be ruled out completely. Decisions are often termed as rational choices (Samuelson & Zeckhauser, 1988). Selecting the best choice highlights the rationality behind the decision making process. One can try to impersonalize the decision making process by assigning certain probabilities to a particular decision (Savage, 1954). However this will work only if the probabilities are known certainly. All decision takers have to bridge that gap of uncertainty either in data or information and be intuitive in decision making. This intuitiveness becomes better with experience.
Keywords: Decision making bias
Although multiple options exist in aiding managers take correct decisions which includes specialized software or high end mathematical equations, these are but man made tools that depend on inputs being fed in to them. If the inputs are off target, the decisions could be awry. One technique that can reduce chances of decision making biases is Brainstorming (Osborne, 1963). This technique was discovered by Alex F. Osborne. The logic here is involving a group in decision making. More ideas are encouraged, none are criticized, radical views are considered better and improvement of ideas encouraged. The only pitfall is that there could be biases in group decision making that can creep in. However, research also showed that in certain decision making situations, this technique worked well.
For example, my friend wanted to break his family tradition of becoming a lawyer and wanted to start an entrepreneurial venture of his own. His family was dead against it. They were averse to funding this venture. My friend did not have the capital to start with. Their disagreement reached a status quo. Finally, one day the elders in the family met for a marriage. A discussion cropped where my friend and his family members sought their intervention. Both sides were heard and the elders discussed amongst themselves. It was finally decided that a small part of the required finances would be put in by the family, but they would facilitate by helping him get a bank loan. A review would then take place after six months, before a final decision was taken. My friend would get his chance and his family would not be burdened as well.
Do you have any examples of decisions with ‘out of box’ creativity that worked or were good decisions.
The ‘out of box decisions’ may appear to be on the spur decisions, but a sound decision will require a prepared mind. An element of intuition in decision making cannot be ruled out completely. (Koontz & Weihrich, 2007)
3M is a company that fosters innovation. At least, 30 % of the sales of the company come from products that are less than 4 years old. Continuous innovation is encouraged through the 15% rule. Researchers spend 15% of their time on things that are not related to the main project. Whenever a 3 M employee has an idea, it is discussed by forming a team consisting of members from all functional areas. Customers are also encouraged to contribute with ideas in such sessions. The team members are rewarded, if the product succeeds. (Stewart, 1989)
References
Koontz H. & Weihrich H. (2007). Essentials of Management: An International Perspective. New Delhi. Tata McGraw Hill.
Samuelson W. & Zeckhauser R. (1988). Status Quo Bias in Decision Making. Journal of Risk and Uncertainty, 1: 7-59. Boston. Kluwer Academic Publishers.
Savage L.J. (1954). The Foundations of Statistics. New York. Wiley.
Osborne A. F. Applied Imagination. (1963). Charles Scribner’s Sons. New York.
Stewart A.T. (1989). “3M fights back”. Fortune. February 5, 1996.pp.94-99.
