Different Types of Biases Affecting Growth of Leaders in Business

Running head: BIASES
BIASES
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BIASES1
The aim of this essay is to discuss the different types of bias which affect the growth
of the leaders in a competitive world of business. This paper will be analysing the bias of
overconfidence, biases and heuristics and bias of bounded awareness. All of these biases
gradually aft the decisions making process as most of the people while making decision
cannot understand their blind areas. The biases when in the management level affect the
growth of the organisation by changing the course of action in many ways. In some cases, the
bias does not allow the other factors to be judged and the definition of truth matters to
everyone in a different way. Sometimes the persons who are in charge of decision making do
not think about other prospective of the decision making therefore their decisions affect the
organisation in a negative way and in some cases, the blind spots are not paid proper heed
which thus affect the decision making process of the managers in an organisation.
According to Simon (1957), bias prevent the mental and rational growth of man and
make them ineffective in the effective decision making process. The more the person is
biased the less he can decide. In addition to this, bias can also lead to the wrong decision
making process which on the contrary harm the other people associated with the person. In
the case of administrative decision making there is no scope for biasness because this blind
the persons effectively preventing the capability to see various factors which directly connect
the effective administrative decision making. This makes people overconfident over the
things they see or hear. Biasness create impact in the minds of the people in such a way that
leads to manipulation of the proper understanding of the situation.
Impractical judgement of the manager directly harm the employees, the customers and
all types of actions of the company. This is due to the fact that they know the consequences in
every bit but due to biasness they often recruit wrong persons in the company, answer
wrongly to the queries of the customers and deal in a negative way to a particular set of
suppliers. These often lead to imprecise judgement about how the common situations take

BIASES2
place but relates to the fact that the most important information or knowledge can be
overlooked when a person is making decision.
Bias of overconfidence:
There are three kinds of overconfidence that include over precision, over estimation
and over placement. This is one of the most well established bias in which is related to the
subjective confidence of person where his reliability is greater than the objective accuracy of
their judgement when the confidence is relatively high. Over confidence is miscalibration of
subjective probabilities. Here the person overestimates the actual performance, every
placement his performance to the others and show over precision unwarranted certainty on
the accuracy of the belief of one (Benoît & Dubra, 2011).
Over precision leads to the bias that what the person knows is actually and the
ultimate truth. In this respect, the person remains overly certain about the accuracy of the
facts. This is the reason why he lacks interest of testing the aspects of his own assumptions
and dismisses all the evidence which suggest the estimates that are incorrect.
Over estimation is related to the ability to control of the self in a particular situation.
Over estimation is the process of thinking oneself to be superior to the others. This limit the
ability of the persons to find out type weaknesses in them which will be later transformed into
their strength. In this regard, the persons are not capable to see any flaws in their attitudes and
knowledge. This actually create problem as this leads to conflict among the employees and
management. Both of these parties do not accept that they can be wrong in decision making
or biased for that matter. The bias of over placement is a false belief that the person is better
than the others in the group. This types of bias prevents people to work effectively in the
competitive scenario. When a person believes in the over placement process he obviously
lose the competition because the strength is actually not understood by the person properly.