Name That Bias! Most of the time managers are fairly good decision makers. On occasion, however, problems can result because human judgment can be adversely affected by the operation of cognitive biases that result in poor decisions. Managers should undertake a personal decision audit to become aware of their biases and, thus, improve their decision making. Four sources of bias that can adversely affect the way managers make decisions are prior hypotheses, representativeness, the illusion of control, and escalating commitment. This exercise will help you understand and learn to differentiate between these four sources of bias. Roll over each individual to read the description and drag the name under the bias that is represented by the individual Yu opened three now stores. As the recession hit, those stores started losing money Rather than closing any of them, he increased advertising and offered more coupons and other customer incentivos Andrew Margarette Arun Nikolas Jacqueline Genie Christine es of Management (MGMT 2011 Saved Roll over each individual to read the description and drag the name under the bias that is represented by the individual A training program that informs workers of mistakes as they occur proved to decrease errors 60 percent. Andrew refused to buy the program. He believes managers should personally tall workers their errors Andrew Margarette Arun Nikolas Jacqueline Genie Christine Prior Hypothesis Representativeness Tilusion of Control Escalating s of Management (MGMT 2010 Saved Roll over each individual to read the description and drag the name under the bias that is represented by the individual Competitors using computers in the fold are increasing their sales, but Margarette believes clients don't like salespeople using gadgets She decides not to purchase computers for the sales team Andrew Margrethe Nikolas Jacqueline Genie Christine Prior Hypothesis Blas Representativeness Illusion of Control Blas Escalating Commitment ividual Arun hired a graduate from the local community college but ended up firing him for incompetence. Now he won't hire anyone from that college Andrew Margarette Nikolas Jacquelin Genie Christine Prior Hypothesis Tllusion of Control Representativeness Bias Escalating Commitment mnciples of Management UMI 201 Roll over each individual to read the description and drag the name under the bias that is represented by the individual Nkolas has decided to acquire his largest competitor. He knows the acquisition will work well because he is running the decision making for the deal Andrew Margarette Arun Nikolles Jacqueline Genie Christine Prior Hypothesis Representativeness Tilusion of Control Escalating Commitment Hall over Back In MUA To individual me description and drag the name under the bias that is represented by the Jacqueline used videoconferencing one time only, 10 years ago. It was jerky and kept cutting out. She now insists on face-to-face meetings rather than current forms of videoconferencing, which keeps meeting costs very high. Prior Hypothesis Bias Representative ness Illusion of Control Escalating Commitment Roll over each individual to read the description and drag the name under the bias that is represented by the individual Believing her instructions are always followed to the letter Gene decided not to review the qually reports this quarter This decision rested in high louses for warranty repairs que Christine Pror Hypothesis Pr Representativeness of Control o thesis Represe Band Escalating Commitment Roll over each individual to read the description and drag the name under the bias that is represented by the individual Christine produced a new product that didn't sel due to major problems Subsequently she started an expensive marketing campaign, hired a new sales manager, and increased the size of the sales team Andrew Nikolas Jacqueline Genie Christing Prior Hypothesis Representativeness Illusion of Control Escalating Commitment