Analyzing Power and Overconfident Decision-Making in Leadership

This essay critically examines the influence of power and overconfidence on decision-making processes within organizations. It synthesizes findings from three research articles, exploring how power dynamics can fuel overconfidence, leading to both positive and negative outcomes in leadership. The analysis delves into the contexts where power and overconfidence manifest, from financial decisions to capacity recovery in power systems. The essay highlights areas of agreement and disagreement among the studies, emphasizing the importance of understanding these biases for effective leadership and organizational performance. It concludes with recommendations for further research and practical strategies to mitigate the negative effects of overconfidence, advocating for a balanced approach to leadership that considers the well-being of all stakeholders. The essay underscores the need for continued investigation into the complex relationship between power, overconfidence, and decision-making to improve leadership practices and organizational outcomes.

Power and overconfident decision-making 1
POWER AND OVERCONFIDENT DECISION-MAKING
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Introduction
Power and overconfidence among individuals have been two essential factors that affect
how people arrive at specified decisions during their operations. This article examines effect of
power along with overconfidence on processes of making decision. Power can always fuel the
overconfidence among individuals that in turn make people in any position of leadership to make
different choices whether good or bad for well being of their subjects (Akbar et al., 2016, p. 244).
The focus of this investigation based on three separate journals that address cases of
overconfidence and power in the process of making different decisions. It is clear in the
presentation of this article that ability to expect the rosy future as well as solidly trust in skills of
people tend to rely on cases of empowering them towards the creation of monument of human
capacity and push humankind toward unexpected findings by use of different approaches. The
investigation outlines different distinct forms of power and confidence that have been identified
in the three literature work by different authors. The presentation goes on to illustrate various
techniques in that different people and organizations can adapt their judgment processes to
reduce the incidence of power and overconfidence while highlighting different real-world case
instances (Xing 2014, p.3). This presentation on the research ends with some critical observations
along with suggestions for future study in this complex sector of power and overconfidence
decision making.
Article summary
According to the study by Fast et al., (2012, p. 256), the experiencing power in most cases
makes individuals overconfident in the process of making several operational decisions. By use of
various instantiations of power that comprise of the episodic activities, the measure of power
related to work, and task to high along with low power functions, power produced decisions of
overconfidence about generated monetary losses for the powerful, power make an individual
remain confident in making a decision. Various outcomes of researchers by the use of mediation
along with moderation have highlighted that power has a central role in the process of making
tendencies of choices. For instance, it has been reported that the sense of power, but not an
individual’s mood always act as the mediator in the link amid power together with
overconfidence. Through experiment, the connection between power and overconfidence remain
to be extreme when access to control isn't remarkable to the compelling people and when the
prevailing people are made to feel by and by uncouth in their energy area. Therefore through the
five different experiments illustrates that power leads to overconfident in the process of making
decisions. The findings from the research by Fast et al., (2012, p. 251) explain that only when

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external power make individuals feel subjectively powerful, it leads to instances of being
overconfidence in the process of making the decision.
According to the article by Xing (2014, p. 3), it illustrates different issues that relate to
overconfidence in the process of deciding for the recovery of the capacity of damaged power
systems. The author notes that overconfident trait, overestimation, along with over precision
plays a significant role in the process of deciding capacity recovery when the method of critical
power capacity is severely tempered with by different people. The author uses the experiment to
demonstrate that thought of expanding regulatory discipline for particular power deficiency and
offering the sponsorship for recuperating limit remain to be ideal measures to calibrate the
insufficient level of service. These levels are always caused managers that are still overconfident in
the process of arriving at various decisions. Xing (2014, p. 5) also find that the over the precision
behavior of organizational manger that is either positive or negative tend to influence the decision
towards the recovery of capacity. The author also found that the calibration technique can be the
motivating factor for managers to recoup greater limit by tuning up the proportion of subsidy
together with castigation. Moreover, efficacy of calibration according to the article remains to be
inevitably weakened as a result of the less capability recovery accorded by the overestimated
leaders in managerial positions. Therefore, research by Xing (2014, p. 4) indicates that the
individuals in administrative positions should always focus on giving careful consideration to the
irregular aggravation whose conveyance crest is still left-skewed. The notice ought to dependably
compare greater limit recuperation ought to be offered to enhance the operational level or
administration level of the arrangement of energy amid the disturbance.
Article by Akbar et al., (2016, p. 243) illustrates how in the present era, stock marketplace
trading has advanced faster, as they state that the rapid progress can give benefits to firms
responsible for brokerage. The presentation explains how several factors affect the decision-
making process among individuals with relation to a case study of Islamabad Stock Exchange. The
illustration examines how the stock marketplace of a specified nation continues to be the
indicator of the growth singular speculation basic leadership process is progressing quicker
making it important to comprehend attribute of individual speculators in a nation. Besides, the
survey identifies the main factor that influences the process of making decisions by investors. The
findings of this investigation reveal positive, important relation amid advocate suggestions,
nonpartisan information, mental self portrait, the picture of firm incident, and individual
speculator venture Xing (2014, p. 6), this study by Akbar failed discover any proof on relations
between data of bookkeeping, established formation of riches amplification, and decision on the

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basis of operational data. Therefore, it is clear that most time decisions of leaders depend greatly
on the power r and overconfidence during operations of individuals.
Article analysis
Points they agree and on which points they differ
All these authors who worked on the issue that relates to power and overconfidence
decision making reported that all operations of organizations depend on active processes and
competence of leaders. They all agreed that influential leaders help in identifying the degree to
which people are the brilliant fit for various places of initiative alongside expert (Fast et al., 2012,
p. 254). In most cases, individuals in leadership positions that are influential and strong always
remain to be fit for roles of leadership as they are still confident in making operational decisions
to boost the outcomes of different operations. Besides, it is evident that more experienced
managers remain to be likely to become overconfident in the process of making various
operational decisions. Leaders have the responsibilities of taken effective disruption management
for the principal purpose of securing together with preserving the interest of the public (Xing
2014, p. 5). Preservation of attention of the public is always necessary as it helps the operations to
work with the objective of ensuring that goals of activities are attainable without any difficulties.
All these studies have been done on the topic of how power and confident behavior influences
that decision of different people in managerial positions can help in making ideal operations when
there are disruption and need of improvement in services by different economic sectors.
According to the knowledge of these authors, the management study on the power and
overconfidence help in improving processes of people by ensuring that they work as per the set
objectives along with the vision of an organization (Akbar et al., 2016, p. 253). Additionally, it is
evident that the presence of psychological experience power among individuals can result to
overconfidence in the process of making different decisions
The argument by the authors these articles differ in one way or the other about power as
well as overconfidence in most cases of arriving at the desirable decision. For instance, Fast et al.,
2012, p. 254) reported that people use multiple instantiations of power together with the
confidence that comprises of a specific task, a measure of control in place of work, and random
assignment to high along with low power functions. It is not the same case according to Xian
(2014, p. 5) decision makers are always utterly rational throughout the entire cycle that deals with
the management of operations. Besides, Akbar et al., (2016, p. 257) stated that behavioral
investment focuses entirely on psychological factors of an individual that contributes towards the

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active process of making decisions. Overconfidence is always treated to be the individual
difference as they are not always likely to obtain necessary power needed for making ideal
operational decisions.
Research findings matter, and can the research be applicable in real work settings
The finding of these three articles is essential in the operations of most companies and
individuals in the present society. The findings on how power and overconfidence help in boosting
process of making decisions remains to be essential to increase the competitiveness around
marketplaces. The result obtained from these investigations is necessary as they show an
interesting parallel that exists between powers along with narcissi among individuals (Fast et al.,
2012, p. 256). Therefore, it is clear that narcissistic persons tend to show some hubristic arrogance
notwithstanding commitment in the conduct of hazard taking. The use of this survey can help in
uncovering another piece of the puzzle through the idea of showing that acquiring proper power
can prompt a portion of the unmistakable inclinations watched in the narcissist.
Recommendations
There is a need to conduct more surveys to boost cases of emphasis on power and
overconfidence in the process of making decisions. The lack of proper investigations has made it
tough for most organizations to understand the influence that influential and overconfident
leaders can have in the process of making operational decisions. The method can help business
operators to understand the effect of speculation basic leadership to accomplish the positive
connection between powers along with overconfidence in developing decision. Accomplishing
ideal concept of power among people responsible for the process of making decisions can help in
understanding behavioral articulations of mental alongside financial qualities required for
development of the individual procedure of deciding.
The outcomes of this study are essential for different people who earn cash by the process
of attracting others to improve the process of making their decisions. There is a need to have a
campaign on different organizations so as the management can come to know how their choices
can be affected and other workers are convinced to follow the set guidelines. The improved
campaign can remain helpful for various organizations that are in need of appropriate decision to
attract people to the investor in their operations. Individual companies need to embrace the use
of influential and overconfident leaders as away enhancing their connections with the future
activities that can result in the increased capability to transcend the present self in the process of
making decisions. Different organizations need to invest more powers in managers so that they

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can remain confident in every decision that they make without necessarily having to wait for the
senior executives to approve their moves. Making managers be influential can thus allow them to
form self-confidence needed in ensuring that they meet every operational requirement in the
marketplace.
Conclusion
The outcome of this study indicates that feeling influential among individuals exacerbates
overconfidence in the process of making decisions. Contemporary outcomes of these articles offer
the compelling illustrations for why the capable people regularly fail to meet expectations, or they
have a tendency to lose their energy rashly in the process of making appropriate decisions.
Therefore, it is clear that there a need for every organizational setting to find ways that help in
softening or then again keep in line the causal connection in the midst of energy and
presumptuousness that speaks to the basic undertaking for future investigations. The need to
assist people regards to be powerful in having a safe escape of such dangerous part of energy
ought not simply be in light of a legitimate concern for control holders but at the same time is in
light of a legitimate concern for all people who day by day affected by their procedures of
deciding. Additionally, this investigation has the major limitation as it only focuses on three
articles to understand the concept that exists between power and overconfidence in the process
of making decisions. It would be advisable for any investigator to use as many articles as possible
to efficiently understand how power and overconfidence relate to decisions making in present
society. Besides, this paper only studies two aspects that can affect the process of making
decisions in operations leaving a room for more studies on other effects that have a hand in the
process of making decisions. From these articles, it is clear that organizations can counter
different self-serving traits by the introduction of the process that helps management to have
power and become overconfidence in the process of making operational decisions. Therefore,
power and overconfidence among people can have both positive as well as negative effects in the
process of making decisions.
List of References

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Akbar, M, Salman, A, Mughal, KS, Mehmood, F, & Makarevic, N 2016, 'Factors Affecting the
Individual Decision Making: a Case Study of Islamabad Stock Exchange', European Journal of
Economic Studies, 15( 1), pp. 242-258.
Fast, N., Sivanathan, N., Mayer, N. and Galinsky, A. (2011). Power and overconfident decision-
making. Organizational Behavior and Human Decision Processes, 117(2), pp.249-260.
Xing, B 2014, 'Research on Overconfidence in Decision-Making for the Capacity Recovery of
Damaged Power Systems', Discrete Dynamics In Nature & Society, pp. 1-7, Academic Search
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