Verified Document

Psychological Barriers To Effective Decision-Making Term Paper

The recency effect: most manager at times have an overreliance on the most readily available information to make decisions, it commonly occurs when carrying out annual performance evaluations of employees where recent performance of the employees plays a major role than accomplishments that have taken place in the earlier periods of review, this has an adverse effect has it may lead to the deviation of the set desired goals. (John k.bochardt 2010)

Anchoring bias: in most cases the price tags on products often if not always affect the purchasing negations between consumers and retailers, and most of the time consumer's end up paying higher prices for the product than necessary. This notion that sometimes leads us to allow initial reference point to distort our estimates is what professor Roberto refers to anchoring bias.

From a marketing point-of-view anchoring bias can come about when negotiating the renewal of a contract with either an advertising company or negotiating a new contract.anchouring bias occurs through the use of previous contractual terms as the reference point when negotiating for a new contract. By unconsciously using anchoring bias the marketer may contract and pay for services which are not profitable for the company

Illusory correlations: "illusory correlation refers to the fact that we sometimes jump to conclusion about the relationship between two variables when no relationships exist." Professor Roberto observes. For instant when managers hire potential workers placing too much weight on the candidates verbal presentation skills believing that there is a strong correlation of these skills with the ones require to perfume the job effectively, thus this illusory correlation may eventually lead to hiring non-performers who present themselves in an excellent manner verbally.

The question now emerges of how we can overcome these barriers...

First the problem or decision to be made must be framed this means that we should develop mental models which can be used to explain the way we understand the situation at hand, this involves making assumptions which can be affected by our biases (John k Borchad 2010).
Secondly which should be able to gather relevant information which will enable us make informed conclusions that will determine the decisions we make, then lastly we should always be ready to learn from our past experiences in that errors made in the past cannot be repeated.

References

John k.borchardt (2010): overcoming barriers to effective deciosion making. An examination of cognitive bses that cause us to make poor decisions

Retrieved from:http://www.ncmahq.org/files/Articles/CM0610%20-%2054-61.pdf

Andrew T. Chadwick and Matthew D. Segall: Overcoming psychological barriers to good discovery

Decisions:

Retrieved from:http://www.tessella.com/wp-content/uploads/2010/07/DRUDIS695FINALEDITED.pdf

Raymond S. Nickerson (1998): Confirmation Bias: A Ubiquitous Phenomenon in Many Guises

Retrieved from: http://psy2.ucsd.edu/~mckenzie/nickersonConfirmationBias.pdf.

Michael a.Roberto:2009 Art of Critical Decision Making. The teaching company. Retrieved from http://www.thegreatcourses.com/tgc/courses/course_detail.aspx?cid=5932

Sources used in this document:
References

John k.borchardt (2010): overcoming barriers to effective deciosion making. An examination of cognitive bses that cause us to make poor decisions

Retrieved from:http://www.ncmahq.org/files/Articles/CM0610%20-%2054-61.pdf

Andrew T. Chadwick and Matthew D. Segall: Overcoming psychological barriers to good discovery

Decisions:
Retrieved from:http://www.tessella.com/wp-content/uploads/2010/07/DRUDIS695FINALEDITED.pdf
Retrieved from: http://psy2.ucsd.edu/~mckenzie/nickersonConfirmationBias.pdf.
Michael a.Roberto:2009 Art of Critical Decision Making. The teaching company. Retrieved from http://www.thegreatcourses.com/tgc/courses/course_detail.aspx?cid=5932
Cite this Document:
Copy Bibliography Citation

Related Documents

Pain Management - Barriers and
Words: 2102 Length: 7 Document Type: Essay

Moreover, fully three-quarters of the surveyed nurses reported that the lack of adequate assessment of cancer pain was a significant barrier to effective pain management, and almost as many (72%) reported a lack of clinician knowledge as representing yet another significant barrier to effective pain management (Vorthern and Ward 1992). Given the complexity of the pain experience, helping caregivers provide appropriate levels of pain management is particularly challenging. Many

Equilibrium and Barriers to Entry and Long-Term
Words: 1607 Length: 6 Document Type: Essay

Equilibrium and Barriers Barriers to Entry and Long-Term Equilibrium in Monopolistic Markets: Strategy and Market Forces Introduction Marginal Equilibrium Barriers to entry can arise out of natural market forces as well as through careful strategic creation or enhancement by incumbent organizations that have a great deal of control over a given market and/or industry. When a specific organization has established a monopolistic or near-monopolistic control over its market and enjoys a great deal

Developing Yourself and an Effective Team
Words: 2159 Length: 8 Document Type: Essay

Successful and Effective Personal and Team Development The objective of this work is to write a critical reflection of the personal development and growth of the writers with the Royal Air Force with a view to broadening the knowledge and skills of the writer to be a more effective manager by undertaking a personal SWOT analysis. Accepted Learning Styles Theories should be used to explain how the writer will apply that

Administrators Role in Establishing Effective Communication Between...
Words: 2989 Length: 10 Document Type: Term Paper

Administrative Strategies for Effective Communication Education contains multiple responsibilities. One starts the learning process in the world from within the family nurture, before continuing to pursue formal education in schools and academy. However, human does not stop learning from their family. Getting exposed to higher education, they also learn things from hands-on experiences and from what are happening in their surroundings. This reveals the fact that family and environment are two contributing

Diversity As a Barrier to Group Psychotherapy
Words: 3329 Length: 10 Document Type: Research Paper

Diversity as a Barrier to Group Psychotherapy According to the Center for Collegiate Mental Health, the psychopathology of college students, and their demand for counseling services in university college centers (UCCs) has risen substantially over the last decade (Center for Collegiate Mental Health, 2014). Well, there are number of reasons why this is so. The most significant of these perhaps is that the modern-day college student faces significant psychological concerns in

Psychological Test Evaluation Beck Anxiety Inventory BAI
Words: 3024 Length: 10 Document Type: question answer

Psychological Test Evaluation: Beck Anxiety Inventory (BAI) Section 1: General Features a) Title: Beck Anxiety Inventory (BAI) b) Author(s): Aaron T Beck, Robert A Steer c) Publisher: Pearson Education, Inc. d) Publication Year: 1993 e) Age Range: 17 years to adult (Beck & Steer, 1993) f) Qualification Code: CL2 Section 2: Instrument Description a) Instrument Function: What does it measure? BAI is a tool used to measure the level of anxiety in persons aged 18 and above. It is the

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now