Literature Review of Decision Making Outsmart Your Own Biases

Questions: 1.How to minimise bias in decision making? 2.How to make effective decisions? 3.What is the importance of leaders in decision making? 4.How to evaluate the decisions made by managers? Answers: Literature Review of Relevant Articles 1. How to minimise your biases when making decisions by Wolfe, R.F 2016. The article states that the senior managers every day face number of biases which affect their business decisions regularly and hence it becomes important for the managers to focus on developing a strategy to reduce biases from the decision making system. Number of top research scholars and philosophers has brought out behavioral vulnerabilities and issues that affect decision making of the senior managers and executives. From these scholars it has been understood that there are number of biases that creep up in organisational decisions making which is definitely capable of making the decisions negative for the organisations. It is important to note that eliminating personal biases will definitely be crucial and hence it will only be possible when the manager will be well experienced with the different bias issues faced during the decision making process. It is stated in the article that in order to eliminate or reduce the impact of bias by constantly challenging the decisions made b y the managers (Wolfe, 2016). The report also provides significant information about how to combat the constant bias that creeps up within the decision making process. The article suggests analysing and finding out disconfirming evidence which would help to continuously analyse the decisions made by the senior managers and accordingly develop the decisions made. It is also important for the managers to also focus on taking outside advice to reduce the overconfidence related to decision making. It also emphasises on suggesting that the managers will have to be more focused on developing a systematic review of the decisions made and also to focus on understanding its suitability and clarity of the decisions made. It is stated that most of the risks doesnt manifest itself from exogenous contingent event but it is driven by the behavior and decisions of the people which makes it extremely important for the senior managers to be able to constantly assess their decision making skills as well as take advise and insights from the other employees to minimise bias in decision making (Dror, 2009). 2. The decision making process by Lunenburg, F.C., 2010, September. Effective decision making skills are important to be there within a manager. As a manager, if a person is indecisive and fails to understand the criticality of a situation then it would affect the business decision making for an organisation. Effective decision making is not an easy task and it is a quality that comes in with experience and it is important that a manager is able to learn to make decisions. For effective decision making procedure commitment, assessment, values and priorities and personal accountability is extremely important and needs to be reflected. It is extremely important for the manager to develop these behaviors and skills in order to make sure that decisions making process involves the skills and capabilities of the manager which will help to make decisions suitably (Lunenburg, 2010). Good decisions are made through values and priorities involved in the decision making process and hence it is important that managers are focused on improving their decision maki ng skills which would contribute to the decision making procedure. An indecisive thinker will not be a good decision maker and hence it is extremely important for manager to make sure they are not ambivalent and biased which would bring in that aspect of bias in the decision making process. The article suggests the managers to become more focused on understanding situations and also to take advice from the other people most likely the peers and the lower level employees which would help the manager to develop his or her decision making skills. Hence it could be said that to make effective decisions it is important for the managers to be adaptable, committed, and skillful and will have to understand situations well so that the managers are able to learn about the biases which are visible and are able to mitigate their effect on the decision making (De Martino et al., 2006). 3.Pettigrew, A.M., 2014.The politics of organizational decision-making. Routledge. The present article shows that the organisations are highly political and hence decision making is one of the key aspects that the organisation need to do effectively. Organisational decision making is complex procedure and it is important for the leaders to intervene in the decision making procedure of the organisation. Since decision making is complicated the leaders come into play as they are experienced and are able to invest their experience in the strategic manner to make the right and suitable decision for an organisation. The leaders mostly intervene in the organisational decision making as they are able to assess situations effectively and also make it possible for the organisation to make a viable decision (Pettigrew, 2014). For instance when personal bias comes into play it is always important to seek external advice and this is where the leaders play crucial role. The leaders not only helps in organisational decision making but they also help in making sure the decisions are properly implemented in the operations which definitely helps an organisation to operate effectively. Hence it could be said that leaders are key entities who should be involved in the decision making process in order to make sure their rich experience comes into play while the decisions are made and implemented and hence it is concluded in the article that leaders should be made an integral part of the decision making process (Milkman et al., 2009). 4. Assessment, measurement, and prediction for personnel decisions. Taylor Francis. For a manager it is important to assess the decisions made. The decisions made always indicate the skills and capabilities of the managers with their results and hence it is extremely important for the managers to learn to make effective decisions as well as analyse them effectively in order to gain proper insights to improve their decision making skills. The present article shows the importance of assessment, measurement and prediction of personnel decisions. In this article it is clearly stated that managerial personnel should be upfront about their analysis of a particular situation and also they should be able to analyse the decisions made by them so that they are able to identify the loopholes in the decisions and accordingly they could eliminate these issues (Guion, 2011). As a manager one has to know how to evaluate decisions made by them and as per this article it could be said that the only way to evaluate the decisions is to assess the impact of the decisions made by the ma nagers. The managers could effectively assess their decisions by understanding their impact on the business which could either be negative or positive and hence managers will have to be pretty active to make changes in the decisions made in order to get the best possible result of the decisions made by them (Gigerenzer and Gigerenzer, 2011).