HC3031 Trends: Common Biases in Decision-Making and Solutions

This report delves into the critical topic of decision-making biases, essential for effective operations in any organization. It begins by defining biases and their impact on decision-makers, who often rely on past experiences and assumptions, leading to potential cognitive biases. The report then identifies several key biases, including cognitive, framing, survivorship, pessimism, representativeness, and overconfidence biases, explaining how each can negatively affect judgment. It also examines how these biases influence the business environment. The report concludes by providing practical strategies to mitigate these biases, such as improving self-awareness and avoiding overconfidence, offering valuable insights for making more informed and rational decisions. The report also includes an analysis of the business environment and growth strategies of DanMurphy's.

COMMON BIASES IN DECISION-MAKING AND HOW THEY MIGHT BE
OVERCOME
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 Process of making decisions is vital in
operations.
 Several data are used in
making appropriate decisions
Abstract

 Decision making processes represents the set of
operations.
 Decision making process respond
to the practical desires.
 Decision making process
improves operations of organizations.
Introduction

 Biases refer to different techniques of thinking
 Every decision maker in an
organization has different
thinking
 Decision makers think while
concentrating their assumptions
on their past experiences.
General biases in the process of creating decisions

 Cognitive bias is the major barrier in process of making
decisions.
 Decision-making process
in most cases is cognitive.
 Cognitive bias is ordinary
 prejudice faced by several individuals.
Cognitive bias

 It is a type of bias that concentrates on how decision makers
recognize issue
 Decision makers make
decisions by relying on the
impact of the style in which the
crisis is being structured.
 Framing bias commonly knows to have a huge impact on operations.
Framing bias or effect

 It often makes individuals or workers to become overly optimistic.
 It occurs when decision
makers give a lot of
their concentration on
reading beliefs concerning
the most profitable advanced
operations.
Survivorship bias

 Decision makers are responsible for demonstrating
the strong biases towards the alternative.
 Pessimism bias refers to the
tendency of different individuals
exaggerate the probability that
adverse events might happen in operations.
Status Quo and Pessimism bias

 Representativeness refers to the request of
psychological shortcuts in decisive conditional
likelihood.
 Overconfidence bias occur when most decision
makers are confident in their opinions and
experiences.
Representativeness and Overconfidence biases

 Bias can be overcome by improving self-awareness among
individuals.
 Bias can be overcome
by avoiding being
overconfidence
 Bias can be overcome by
 making appropriate judgments on different operations.
How to overcome general biases in the process of
creating decisions

 Every operator is bond to make wrong decisions
during operations.
 Appropriate strategies can minimize biases in
operations
 Common biases impact the manner business
operators think and behave.
Conclusion

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List of References