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of one’s self and one’s performance. ? Immediate Gratification Bias ?Choosing alternatives that offer immediate rewards and that to avoid immediate costs. Copyright 169。 2021 Prentice Hall, Inc. All rights reserved. 6–25 DecisionMaking Biases and Errors (cont’d) ? Anchoring Effect ?Fixating on initial information and ignoring subsequent information. ? Selective Perception ?Selecting anizing and interpreting events based on the decision maker’s biased perceptions. ? Confirmation Bias ?Seeking out information that reaffirms past choices and discounting contradictory information. Copyright 169。 2021 Prentice Hall, Inc. All rights reserved. 6–26 DecisionMaking Biases and Errors (cont’d) ? Framing Bias ? Selecting and highlighting certain aspects of a situation while ignoring other aspects. ? Availability Bias ? Losing decisionmaking objectivity by focusing on the most recent events. ? Representation Bias ? Drawing analogies and seeing identical situations when none exist. ? Randomness Bias ? Creating unfounded meaning out of random events. Copyright 169。 2021 Prentice Hall, Inc. All rights reserved. 6–27 DecisionMaking Biases and Errors (cont’d) ? Sunk Costs Errors ? Fetting that current actions cannot influence past events and relate only to future consequences. ? SelfServing Bias ? Taking quick credit for successes and blaming outside factors for failures. ? Hindsight Bias ? Mistakenly believing that an event could have been predicted once the actual oute is known (afterthefact). Copyright 169。 2021 Prentice Hall, Inc. All rights reserved. 6–28 Decision Making for Today’s World ? Guidelines for making effective decisions: ?Know when it’s time to call it quits. ?Practice the five “whys”. ?Be an effective decision maker. ? Habits of highly reliable anizations (HROs) ?Are not tricked by their success. ?Defer to the experts on the front line. ?Let unexpected circumstances provide the solution. ?Embrace plexity ?Anticipate, but also anticipate their limits Copyright 169。 2021 Prentice Hall, Inc. All rights reserved. 6–29 Characteristics of an Effective DecisionMaking Process ? It focuses on what is important. ? It is logical and consistent. ? It acknowledges both subjective and objective thinking and blends analytical with intuitive thinking ? It requires only as much information and analysis as is necessary to resolve a particular dilemma. ? It encourages and guides the gathering of relevant information and informed opinion. ? It is straightforward, reliable, easy to use, and flexible