Common Biases in Decision-Making and How to Overcome Them

This research paper explores common biases in decision-making and provides strategies to overcome them. It discusses biases such as confirmation bias, framing effect, survivorship bias, IKEA effect, anchoring bias, overconfidence bias, planning fallacy, availability heuristic, and progress bias. The paper also highlights the importance of self-awareness and inclusive decision-making practices.

Common biases in decision-making and how they might be overcome 1
COMMON BIASES IN DECISION-MAKING AND HOW THEY MIGHT BE OVERCOME
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Common biases in decision-making and how they might be overcome 2
Introduction
In situations of doubt, the circulation of appropriate evaluations becomes the essential
elements for the achievements of operations of different organizations. The process of making
decisions represents the collections of different operations that lead to the creation of the final
option. The option become to be one beyond the group of prospect measures that desired target
to be attained (Starns and Ma 2017). Commencing from the postulation that creators of decisions
are entirely conversant as well as rational individuals, the progress of the modes that are
normative of the process of making decisions remain to reply to the observer desires to set down
the course of creating decisions that might allow normal choice. Raglan (2014) reported that in
actual conditions there exist deviation in the use of the cogent course of making decisions.
Besides, trait of making decisions is under the impact of the uncontrolled aspects that break the
situations necessary to complete data as well as rationality. Therefore, the primary objective of
this research paperwork is to determine some of the common in the course of making choices
and some of the ways that can be used to overcome such biases in operations. Therefore, the
principal target of this research study is to reflect the identification of the biases that mostly
happen in the process of deciding on operations as well as techniques that can be utilized to
minimize such instances of biasness in operations (Nikolić 2018). The recommendations will be
addressed that can be used for various individuals or organizations to overcome biases in the
process of conducting their business operations. The paper will illustrate how overcoming such
instances of biases in the process of making decisions is essential in assisting decision makers in
enhancing their processes of making decisions in real situations.
Biases in the course of making decisions

Common biases in decision-making and how they might be overcome 3
Biases in the course of creating decisions refer to diverse ways of thinking about as well
as perceiving the global community that may not necessarily reflect the real situation. Individuals
might think that they experience the world around them with perfect objectivity, but in most
cases, such instances are rarely the case. Every individual in the process of making decisions
tend to think differently while basing their assumptions on their preconceptions, past
experiences, together with environmental or societal elements, but do not necessarily mean that
the manner they think or feel concerning something is truly representative of reality.
Commencing from normative design, choice as the result of the process of creating decision
needs to signify the rational options made by the wholly informed result creator (D’Angelo,
Mustilli, and Piccolo 2018). With the advancement of the behavioral perspectives of process of
creating a decision, specific mistakes in behaviors of makers of decisions have been identified to
be emerging as the consequence of their limited cognitive abilities as well as the data symmetry.
According to Blumenthal-Barby and Krieger (2014), the use of heuristics as a simplified strategy
of mental together with specific deformations among thinking along with perceptions of makers
of decisions leads to the diverse biases that influence their attitudes together with a scheme to
solving any operational issue.
It is clear from most researches that process of decision making is a real situation that
entails the significance of indulgent the capacities of limited cognitive of choice makers. It can
result in different errors in the viewpoint of observing issues together with the negative impact of
the effectiveness of making decisions in operations. As a result of the effect of the limitation of
aptitudes of cognitive, makers of diverse decisions apply diverse heuristics as mental approaches
by which they simplify different problems and redefine the approach of their solving. The need
to understand psychological strategies as the ideas of simplifying the process of making

Common biases in decision-making and how they might be overcome 4
decisions in different operations remain to be the initial plan in facing complex issues (Khaled
2017). Commencing from accepting that choice maker are always restricted rational persons, the
subject topic of study are prejudiced as a heuristic that impact the conclusion of choice-makers
as well as instigate certain regular mistakes in the process of creating decisions. Besides,
perceptive of the prejudices that appear as the consequences of the impact of various emotional
as well as societal issues on decisions creators signifies the present study sector in the field of the
hypothesis that deals with decision making in operations of individuals and organizations. In
most instances, bias blind spot occurs when there is a tendency to think that an individual is less
biased than others during operations (Rzeszutek, Szyszka, and Czerwonka 2015). Makers of
different decisions are biases can impact the choices of people even when they are unaware of
such situations.
Common biases in decision-making
As society and business operators think they are open-minded as well as impartial, the
tone of diverse biases is continually impacting the operations within the society. Biases affect the
manner individuals behave, think, and make different operational decisions. While others are
openly apparent, several biases are unconscious. Most cases an individual responsible for making
decisions might lack the idea that they are under the impact of a bias that is distorting the manner
of their thinking (Walmsley and Gilbey 2016). Therefore, there is a need to focus on having a
protected diversity of the workplace. The idea can be attained by developing the inclusive
customs where every individual is represented, collaborate efficiently, as well as focus on a
simple way to create the appropriate choice in any present situation. The society also needs to be
in control of every choice they make to improve their operations (Teovanović, Knežević, and
Stankov 2015). Therefore, some of the common biases that affect the process of making

Common biases in decision-making and how they might be overcome 5
decisions can comprise of survivorship that pays a lot of attention to success while glossing over
organizational or individual failures. IKEA effect places immense value on different issues an
individual tend to work to achieve personally. The other biases comprise of anchoring,
confirmation, overconfidence, planning, progress, along with availability. However,
DiBonaventura and Chapman (2018) grouped different biases in different classes that comprise
of action-leaning prejudice, altruism bias, pattern-gratitude prejudice, societal harmony
prejudice, as well as permanence bias.
Confirmation Bias
It is an ordinary bias faced by various individuals who are responsible for making
decisions. In most instances, individuals face this kind of bias when they tend to favor
information that supports their preconceptions. When individuals come across data that support
their thinking and theories, they become much more likely to pay much attention to it and
remember it most of their times (Byun and Jeon 2016). Powell, Hughes-Scholes, and Sharman
(2016) recorded that when individuals find issues that challenge their assumptions, they always
search for other ways of invalidating or ignoring such data in the process of arriving at their
decisions concerning different operations. Therefore, this kind o tendency can keep most people
to remain stuck on old beliefs even when they have been able to present evidence that disproves
their operations.
Framing effect
It describes the manner how presenting the common information from a different
perspective can dramatically vary the decisions that most operators and individuals make around
the global society. For instance, a survey by psychologists by the name Tversky Amos as well as

Common biases in decision-making and how they might be overcome 6
Kahneman Daniel demonstrated to the society that when participants have presented the
hypothetical situation where they require saving the population from the disease that is harmful
to wellbeing, participants are more probable to avoid danger. Besides, when the positive
structure is presented but seeks danger if the negative structure is presented (Hausmann, Zulian,
Battegay, and Zimmerli 2016). Individuals and leaders are responsible for making different
decisions have the instinctive inclination to perform what makes them feel good. Therefore, in
most cases, leaders only concentrate on listening to or respecting the information that aligns with
their points of view or opinions in operations. Nikolić (2018) stated that such instances lead most
people to reject any data that is against their views or beliefs. However, relying on different
materials that substantiate pre-formed views often leads to a biased process of making decisions.
Survivorship bias
Here, it can lead individuals to become overly optimistic. The resultant of such situations
exists because individuals look at other individuals that prospered. It means that people are
above to simplify success, assuming that if they emanate the common actions, they will attain a
similar achievement (Meng 2017). For instance, when different organizations focus on
researching startups, they focus on reading ideas concerning the most profitable new operations,
but because they are not spending the similar amount of duration studying the companies that
failed, they might come away with the incorrect information with the inaccurate views or
opinions of the probability of achievement.
IKEA effect
The bias of IKEA occurs when an individual’s places more value of different elements
that they had attained by their operations. Decision makers always pace a lot of value on things

Common biases in decision-making and how they might be overcome 7
they had attained when they try to discount smart ideas as well as good work of other individuals
in the process of making decisions (Nikolić 2018). It happens in the situation when an individual
decision maker is no honest about the reason why he or she is backing a specific aspect.
Anchoring bias
It happens when an individual is overly impacted by the initial source of data that they
receive for making decisions. In most cases, this kind of bias in the procedure of creating
decisions refers to the ‘initial impression of prejudice.’ It also relates to the tendency to leap to
conclusions based severely on what individuals can ear in an early stage (Meng 2017). However,
once an individual opinion or view is formed, it can be tough to consider other options in
establishing decisions for operations. Therefore, this kind of bias is common where individuals
are stressed or fee that they have to create snap decisions (Byun and Jeon 2016). Individuals tend
to act hastily without slowing down making the process of making decisions to be a change.
Overconfidence biases
It occurs when individual thinking of their contribution is seen to be important as it is in
the real case. Besides, this type of bias occurs in the process of making decisions when
individuals are overly confident in their intelligent, opinions, or experiences in making decisions.
It can mask people from the truth together with cause individuals to take risks; particularly they
are appropriate in their assumptions (Levy and Tasoff 2015). Cases of overconfidence bias can
go handy with anchoring with limited understanding or experience. In other cases, it goes in
handy with the idealistic belief or faith in an individual’s decisions that can lead them to act
hastily or on hunches (Hauser and Schwarz 2018). The individuals are not focusing on being

Common biases in decision-making and how they might be overcome 8
self-aware as they do not take the opinions of other workers in the process of making decisions
for operations of different organizations.
Planning fallacy
It comprises of the underestimating the period it will take individuals to finish the
operations. Often individuals are scheduling operations they think the appropriate case scenario.
It then blindly presumes the end outcome will follow the design without considering any
unexpected aspects that might result in delays in operations. Besides, this concern rests entirely
on the capacity of different decision makers to say no. People tend to receive training to say yes
when they re-requested to perform different views even if they negatively impact decisions of
operations. The bias in making decisions is rampant as most people are unable to schedule their
time and offer themselves the buffer amongst finishing a single task as well as commencing
another operation.
Availability heuristic
It is a concern that occurs in operations when individuals can place more value on the
first idea that comes into an individual and in the process of making decisions. Besides,
availability heuristic illustrates how individuals believe that because individuals remembered
something, it needs to be useful. It can also mean being biased by the modest recent or new data
an individual has heard or guessed the probability of the event happening concentrated on the
number of situations an individual can think of during the process of making decisions. Besides,
it is effectively the cognitive shortcut, saving individual time when calculating danger. In most
cases, it is often means missing out on different solutions because an individual is conceived the

Common biases in decision-making and how they might be overcome 9
initial opinion is the appropriate one. Individuals are always reluctant to say no even when the
operations do not match what is needed during operations.
Progress bias
It relates with the idea of overstating positive actions while downplaying negative
approaches during the process of making decisions. The idea in this situation occurs when
individuals responsible for making decisions offer too much credit to the appropriate issues they
have completed despite the fact they are offsetting by the not-so-good. It occurs when
individuals tend to overemphasize on the consequences of their harmful operations (Khaled
2017). Progress bias can make individuals to make wrong choices as they think they are in the
more beneficial standing than they are in operations.
How to overcome common biases in decision-making
It is clear that every moment through daily operations, individuals are making decisions.
However, most individuals who are decision makers are unaware of the thoughts, prejudices,
buried beliefs, together with biases that affect other people’s’ decisions (Meng 2017). Therefore,
most individuals are unconscious of how they affect other people decisions. Even with
consciously creating the decision, these hidden biases affect vital processes of making decisions
and like the pebble is thrown in tote calm thought that shows that there is ripple influence from
that decision that affects several operations (Bornstein and Emler 2017). The need to be capable
of identification of individual biases, beliefs, along with perspective can help an individual to
bring more consciousness as well as objectivity into their decisions.
Some of the best techniques that can be used to overcome common prejudices in the
procedure of creating decisions comprise the idea of increasing self-awareness. There is a need

Common biases in decision-making and how they might be overcome 10
to identify who as well as what makes operations of an individual to be uncomfortable (Hauser
and Schwarz 2018). The focus on educating an individual on the several cognitive biases that are
different can also aid in the process of reducing instances of occurrences of biases in operations.
Hausmann, Zulian, Battegay, and Zimmerli (2016) denoted that need to focus on different ways
to challenge what an individual see and think of is critical in reducing cases of occurrences of
biasness. Therefore, an individual surrounding themselves with a different group of individuals
with diverse views can help in finding the right ideas on appropriate ways of increasing ideas of
making decisions.
Increasing individual awareness
There is the need for management of organizations to start their operations by noticing
their responses, reactions, along with judgments through the day to diverse individuals along
with other individuals. The idea of paying more attention to how an individual feels is an
essential way of reducing instances of biases in operations (Hawkins and Fletcher 2013).
Borrowing different techniques from great FAQs as well as incorporating them into an individual
landing page is another way that can be used to overcome cognitive bias in the process of
making decisions. It has to be attaining carefully, as too much text can result to harm individual
conversation rates.
Identifying the individual and things that make decision makers comfortable
In most cases, there is an individual within the organization that rubs the decision makers
in the wrong approach or annoys the decision makers. There is a need to be curious for decision-
makers to understand what is it really that makes them respond in an effective way to other
people (Nikolić 2018). Therefore, there is a need to consider if some people have different

Common biases in decision-making and how they might be overcome 11
opinions or views on the issue from what decision makers are thinking of in daily operations. As
recorded by Sleegers, Proulx, and van Beest (2019), there is a need to focus on ideas of
eliminating what makes decision makers uncomfortable. Therefore, the idea of being aware of
individual feelings of discomfort remains to be excellent peek into unconscious biases.
Educating an individual on several different cognitive biases
The concept of cognitive prejudices in the procedure of creating different operational
choices needs an effective approach to be minimized. The need to conduct operations on a clear
and measured judgment can help in improving the operations of the organization (Supramono
and Wandita 2017). There is a need to define the best criteria for making up decisions up front
and sticking to it through operations. Such a process can help in lessening the impact of creative
debating on later stages of operations. Education process can improve the way individuals create
a diverse team of decision-makers so that the interests of a single group do not dominate the
process of making decisions.
Avoiding overconfidence bias
There is the need to focus on different sources of information that an individual tend to
rely on in the process of making decisions. The decisions must make fact-based or if the
operators depend on hunches (Supramono and Wandita 2017). The need to focus on ideas that
are useful in gathering information can help in reducing confidence among operators. Therefore,
there are various biases that an individual need to be aware of that shape their perspectives
together decisions. Consciously adopting the curious mindset toward an individual and what
biases shape an individual starts to make the best decisions together with altering and individual
thought patterns (Nikolić 2017). The idea of keeping the journal by listing the techniques that

Common biases in decision-making and how they might be overcome 12
individual unconscious biases affect thoughts together with behaviors of individuals can help in
the reduction of common biases (van Elk 2019). Therefore, taking these necessary steps aid an
individual in uncovering the beliefs, biases, together with perspectives that affect individual
decisions.
Conclusion
Despite the energy signifying that representation of rational option should be practical in
the process of making choices; makers of such decisions often create bad choices. The
fundamental motives for making wrong decisions are the lack of obligation together with
restricted prudence of makers of decisions. The impacts of restricted rationality establish how
makers of decisions create an option. Conditional on the context that choice is created in, diverse
aspects of behavior that tends to figure how makers of decisions gather, filtrate, process, as well
as analyze data in the process of making decisions and making choices. It is apparent that in the
sensible sense that classified advice for alleviation of harmful impacts of prejudices on the
perception of choice makers can aid creators of decisions in improving the process of making
decisions in real scenarios. Therefore, every individual in the society should keep in mind that no
one can escape biases in course of making choice during operations. However, if they are aware
of them then challenging them can become the stronger thinker alongside better maker of
decisions in overall operations.

Common biases in decision-making and how they might be overcome 13
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