In: Accounting
Explain how cognitive shortcomings play a role in Diane's position
Answering in respect to the case study: A Team Player? (a GVV case)
A cognitive bias is a systemic mistake in thought that happens as people process and perceive knowledge in their social environment which influence the decisions and judgments they make.
Facts:
Diane, a group member of the inventory audit team, points out deficiencies in the client's inventory system to her fellow group members. However, she is hesitant on informing about these deficiencies to her senior, Jessica, as in her understanding the differences are minor. She goes on to have a vote among the group members whether to inform their senior or not which turns out in her favor.
Analysis:
In my opinion, Diane should have informed this to Jessica as she would have gained an edge over her other group members for identifying flaws in the system. Also, the client may have suffer losses in coming period as the miscounting currently is minor but the systemic failure may lead higher miscounting. This shows Diane's systemic mistake in her thought process. Thus cognitive shortcomings played a major role in Diane's decision in her position.