Decision-Making and Bias: Critical Examination of Theoretical Concepts

This essay examines decision-making and bias, focusing on concepts like overconfidence, bounded awareness, and focalism. It begins by referencing Simon's quote about the limitations of human rationality in complex problem-solving. The essay then delves into the adverse effects of bias and overconfidence in the workplace, highlighting how they can lead to poor decisions and employee attrition. It explores the impact of overconfidence on decision-making, categorizing it into various forms such as overplacement, overprecision, and overestimation. The essay also discusses bounded awareness and focalism as factors influencing decision-making, illustrating how they restrict information processing and lead to biased outcomes. It provides strategic processes to overcome the issues related to the system of overthinking in the decision-making process by labeling the emotions in a more aligned manner. The analysis includes references to relevant studies and theories to support its arguments. The essay emphasizes the importance of rational thinking and unbiased decision-making in organizational settings, concluding with a reflection on how these biases can be mitigated to improve decision-making processes and outcomes.

Running Head: DECISION MAKING AND BIASNESS
Decision-making and Biasness
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Author Note

Running Head: DECISION MAKING AND BIASNESS
The purpose of the essay is to understand the various reasons that triggers problems in
decision-making, biasness and overconfidence. The decision-making can be adversely affected
due to any unjustified assumption or biasedness this can affect the work environment drastically.
Biasedness is an action that is mainly undertaken by the authorities of the company towards the
employees or candidates whom they mainly favor and consider compared to other employees.
This also hampers the motivation and the dedication of the other employees towards their duties.
Overconfidence is again a big issue that triggers uncertainty and attrition of employees in the
company, in this the authorities mainly believes and takes decisions without even understanding
the original incident (Adel & Mariem, 2013). They stay stern on the assumption that they have
developed and avoid any kind of explanation. Simon has explained in his study that rationale
thinking is one of the concept that adversely affects the decision-making and leads to biased
behavior (Baker& Ricciardi, 2014).
Decision-making is a process that requires great rational thinking of the authorities and
they have to ensure that the decisions that are being undertaken are bias free and there is no
overconfidence in them. The decision-making has to be done after understanding the issue
identifying the alternatives that can help in eradicating the issue and then implementing the
alternative in the process (Zhang & Cueto, 2017). Overconfidence effect is a bias in which an
individual’s perception regarding the decision is either wrong or self-made. This also leads to
various issues in the decision making process. Overconfidence is an instance of miscalibration of
subjective possibilities. Overconfidence can be further classified into many categories over
placement, over precision overestimation, calibrated decisions andgeneralizability. Over
placement is another factor of over confidence that also largely affects the decision making of
the authorities, this problem of the authority occurs when they emphasize or stretch an issue

Running Head: DECISION MAKING AND BIASNESS
unnecessarily (Menkhoff, Schmeling &Schmidt, 2013). This also leads to issues and
unsatisfactory decision making for the subordinates. Overprecision is another component of
overconfidence in which the managers emphasize on this assumption and somehow neglect the
protocols or systems of the company this leads to unsatisfactory performance and leads to
conflicts with the authorities. The employees tend to manipulate their decisions according to
their assumptions and convenience, which leads biased decision- making. Overestimation is
another factor where the employees estimates the outcomes according to their convenience and
the company cannot follow their understanding thus this leads to conflict and error in the
decision-making (Antonczyk & Salzmann, 2014). The employees estimates the situation
according to their assumption and apply alternatives that leads to the eradication of the problem
for the time being but not for long run. Calibrateddecisionsis the ability of the individuals to
understand the situation and take resolutions to settle the dispute but the problem of
overconfidence is also being hindrance in terms of calibrated decision making. In
overconfidence, the employees or the subordinates tend to show self-assurance about the
decisions that they are taking or planting on the situation, this leads to neglecting the protocols of
the organization, and they are not rightfully implemented (Salamouris, 2013). Thus, this leads to
dissatisfaction of the authorities and gradually to disputes between the subordinated and the
employers.
According to Simon, an individual fails to justify the problem and take proper
measurements towards the problem this mainly occurs due to irrational approach and thinking of
the individual of the individual towards the resolution of the problem. Thus, the decision making
of the individuals are adversely affected by their overconfidence and irrational behavior.

Running Head: DECISION MAKING AND BIASNESS
The major role of bounded awareness process in the system of decision making function
generally plays a major role in the certain Factors that affect the operations of the respective
organization as whole. It is a function which is considered to be the respective function that
affects and creates a negative impact in the functioning of the organization (Bazerman, & Sezer,
2016). The major factors that are associated with the system of bounded awareness process in the
decision making function are based upon certain factors that are associated with the business
environment.
As compared to the organizational functioning, when a manager or people of the
respective organization are involved under the decision making function of the organization. The
system of bounded awareness under the organizational context, are considered to be the process
that are symbolized by several cognitive blinders that prevents the workers and managers of the
respective organization from taking certain decisions that are irrelevant. Through the function of
preventing them from understanding the most relevant factors that are required for the actual
implementation of ideas that can be most beneficial for the further operations of the organization
(Zhang, et al. 2015). This can be generally die to the system of overconfidence and over
expectations that make them ignore the key factors in the decision making function.
Some of the major problems and consequence of bounded awareness in the system of
decision making through the system of overthinking function are based upon certain factors that
are associated with the organizational context. For an example, in most of the cases the manager
and the leaders fail to process information for developing cognition on the urgency and the type
of decisions. Information or data is considered more effective and systematic in the operational
aspect of the respective organizations. However, the lack of proficient data processing
capabilities of a manager might restrict their potency of improving the decisions. In this relation,

Running Head: DECISION MAKING AND BIASNESS
it is important for the executives to understand the outlying threats and opportunities associated
with the respective organization to remain more objective and to deliver key focus on the
responsibilities through the function of effective decision making. The major consequences that
are caused through the system of overthinking factors that are associated with the function of
bounded awareness are where the organization fails to analyze the regulatory and political
factors that are required to be adapted to create and generate changes in the environment for the
systematic implementation of strategies that are important for the upliftment of the
organizational functioning in the future. The other major problems that are associated with the
functioning are based upon the system of failure in using the respective information that is
based upon the organizational aspects. For an example, if the executives of the respective
organization fails to disregard and consider the most relevant factors that are required for the
functional aspects, the rational decision making function fails. Overthinking factors that are
associated with the bounded decision making function may lead to the failure in sharing the
information within the organization under certain aspects. There are certain instances that are
pertaining in the respective organization were the executives are responsible for the success of
the respective organization under the all aspects through their key focus and idea generation in
the functional aspects of the respective company. The major issues that are associated with the
respective function can be based upon the implementation of certain factors and ideas where the
managers fails to understand the key changes that have to be generated in the required areas , the
major issue is where they break through their bounds that are involved in the decision making
function due to overthinking.
Some of the major factors that are associated with the in attentional blindness factors are
where the individual fails to analyze the most important and qualitative factors in the direct sight.

Running Head: DECISION MAKING AND BIASNESS
These are the factors that are based on several cognitive deficits that are associated with the
respective individuals. As compared to the factors that are associated with the respective
organization, the real and actual situation that can create a negative impact in the organizational
functioning of identifying the in attentional blindness factors that are pertaining between the
employees of the respective organization.
According to the theories that are associated with statements created by Simon it is
understandable that the function of focalism is based on certain factors where the individuals are
more concerned about the key factor during the function of making decisions. The major focus is
one piece of information where the individual make the best use of it to make judgments. As
compared to the organizational concept of the above mentioned function the major factor is on
the system of decision making process that are adopted by the employees of the respective
company (Cain, Moore & Haran, 2015). According to the statements created by Simonon the
overthinking function of decision making, it is stated that focusing on one single data may lead
to bias where it may be difficult for the individual to remain more realistic and reliable in the
operational aspect of life. This system associated with the function of decision making through
the process of overthinking may lead to several aspects that are based on making innovative
decisions that are required for the future aspect of the individual (Baker& Ricciardi, 2014).
Some of the major strategic processes that are associated with the function to overcome
the issues that are related to the system of overthinking in the decision making process are based
on certain factors that are required for the individual to label the emotions in a more aligned
manner (Pasdiora, Andrade Brei, & Nicolao, 2015). This may help them to overcome the issues
and consequences that are related to the individual emotions and feelings. This function helps in

Running Head: DECISION MAKING AND BIASNESS
boosting the feelings that are associated with the individuals and learn the factors that are on a
radical basis.

Running Head: DECISION MAKING AND BIASNESS
The decisions that are taken under overconfidence highly affects the motivation and the
emotions of the employees. The protocols that the company has for the employees are at times
becomes very stringent for the employees and thus they start overthinking and formulate their
own assumptions to eradicate them. The overestimation factors comes in play in the decision
making of the employees as they estimate the whole scenario in their convenience and formulate
their decisions according to their rationality (Cain, Moore & Haran, 2015). The decisions that the
employees are taking based on their self-confidence leads to many conflicts and
miscommunication with their authorities. Overthinking and overconfidence also leads to stress
for the employees as they feel that the authorities are purposely becoming stringent on the
protocols but they fail to realize that their decisions are hampering the policies and the protocols
of the company in such adverse stringency is taken against them (Nacar, 2015). This also
hampers the motivation of the employees towards their work and the performance gradually
deteriorates (Pasdiora, Andrade& Nicolao, 2015). The miscommunication that occurs due to

Running Head: DECISION MAKING AND BIASNESS
overconfident decision making of the employees also results in downfall of the emotional
stability of the employees as they feel that they are being targeted. Emotions and cognition,the
ability of the decision making of the employees is hampered due to their overestimation and
overthinking of the employees. They tend to take bias decisions according to their own
assumptions and thus leads to confusion and conflict between the authority and the employees
(Marshall, et al. 2013).

Running Head: DECISION MAKING AND BIASNESS
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Running Head: DECISION MAKING AND BIASNESS
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