Outcome Bias in Decision Making

Cognitive Bias
Knowledge Center

 

Next Topic

Cognitive Bias > Best Practices > Outcome Bias in Decision Making

Outcome Bias in Decision Making
Gandhi Heryanto, Management Consultant, Indonesia, Premium Member
The fact that something worked doesn't mean it was the result of a correct decision, and the fact that something failed doesn't mean the decision was wrong (Howard Marks, Inspiration from the World of Sports Memo). OUTCOME BIAS When people are judging the quality of leaders’ decisions, they tend to focus much more on outcomes than intentions, a phenomenon that psychologists call "outcome bias". The outcome bias is costly to organizations. It causes employees and leaders to be blamed for negative outcomes even when they had good intentions and used a thoughtful decision-making process, considering all the information that should be taken into account. Organizations and their leaders can benefit from understanding how to help individuals look beyond end results. REDUCING OUTCOME BIAS Ovul Sezer and Max Bazerman of Harvard, Ting Zhang of Columbia and Francesca Gino decided to investigate potential ways to eliminate (or at least reduce) the outcome bias. In a series of studies, wh (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


   
Special Interest Group Leader

Are you an expert in this field? Sign up for free


Cognitive Bias
Summary
Forum
Stories About Human Biases 😃
Overview of 180+ Cognitive Biases
🔥Survivorship Bias
What are Heuristics?
Best Practices
🥇Your Customers, Employees, Managers and Stakeholders are all Irrational: Behavioral Economics
🥈How to Avoid Biases in Recruitment and Talent Management
🥉Cognitive Bias Literature
How to Fight Cognitive Bias?
How to Overcome Judgement Noise
Outcome Bias in Decision Making
Perceptions Errors and Cognitive Bias are Similar


Cognitive Bias
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.5 - Last updated: 8-7-2020. All names ™ of their owners.