Question

There are many decision-making biases that can influence a manager's decision. Which bias do you believe is the most common one? Give examples.

Answer 1

Answer:-

Biases in decision making are usually cognitive biases. They may result in the failure in the process of decision making when they are not identified and mitigated or avoided. Cognition biases arises from the deviation from rationality and one developing different perceptions than they should. A number of biases exist which may include confirmation bias, focusing effect, stability bias, framing effect, overconfidence bias, information bias, normalcy bias, negativity bias, loss aversion, projection bias among several others.

Explanation:-

Among all the biases affecting the decision making process, in my own view the most common bias is the overconfidence bias. Most people tend to believe that they are doing the right thing while they are certainly not in real essence. A number of managers tend to be overconfidence while implementing a certain decision as naturally a number of people do not focus much on the weaknesses but much on the positive outcome they expect. The other biases are also common for most individuals.