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A Very Boring Texto

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Khaiber Wissal
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14 views2 pages

A Very Boring Texto

Uploaded by

Khaiber Wissal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Now moving on to: The hidden traps of decision-making

Managers have to catch thinking traps before they become judgment disasters; because making decisions
is the most important job of any executive. And it’s also the riskiest, so bad decisions can damage a
business and a career sometimes irreparably. But where do bad decisions come from?

To answer this question, we need to take a look on the human brain, because the way the human brain
works can sabotage our decisions.

Every day our brains must process and respond to thousands of problems, both large and small, while
one might wish there were time to methodically and thoughtfully evaluate the fine details of our
everyday tasks, the cognitive demands of daily life often make such processing logistically impossible.
Therefore, the brain must develop reliable shortcuts. to keep up with the stimulus-rich environments we
inhabit. Psychologists refer to these efficient problem-solving techniques as heuristics.

So, Let’s find out how heuristics actually work

here you can fully see how the everyday decisions are made in a fast-thinking pathway, operate mostly
unconsciously and aim to reach reliable decisions with as minimal cognitive strain as possible.

However complex decisions rely on consciousness, continuous attention to carefully assess the details of
a given problem and logically reach a solution.

Now heuristics normally serve us well, but because they operate mostly out of our awareness, they also
present traps.

The Anchoring Effect and How it Can Impact Your decision-making

Now Moving on to the next trap which is anchoring.

The anchoring effect can be defined as a cognitive bias that describes the common human tendency to
rely too heavily on the first piece of information offered. which often results in a fixed mindset that is
hard to change.
In business, one of the most common types of anchors is a past event or trend.

For instance, If I were to ask you where you think Apple’s stock will be in three months, how would you
approach it? Many people would first say, “Okay, where’s the stock today?” Then, based on where the
stock is today, they will make an assumption about where it’s going to be in three months. That’s a form
of anchoring bias. We’re starting with a price today, and we’re building our sense of value based on that
anchor.

(Assuming you know everything you need to know about someone because of their credentials or
someone else’s opinion of them). that’s a form of anchoring as well

The last trap we’ll discuss today is the framing trap

The first step in making decisions is to frame the question. It’s also one of the most dangerous steps, as
how you frame a problem can profoundly influence your choices. So basically, a poorly framed problem
can undermine even the best-considered decision.

And thus, our decisions will get influenced by the way information is presented

For instance, a doctor tells their patient that a procedure has a 90% success rate (positive frame) versus a
10% failure rate (negative frame). Now the patient is more likely to opt for the procedure with positive
framing even though they’re the exact same thing.

How to get rid of decision-making traps?

To save themselves from falling into these traps, managers should:

Encourage the exchange of different ideas, and encourage team members to challenge their thinking and
be open to feedback.

Stay up to date with the latest research and best practices in decision making.

And attend training programs and workshops to enhance their skills and knowledge.

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