In general there are three general heuristics namely availability, representative and confirmation heuristics. They encompass eleven specific biases.
Economists claim individuals are rational decision makers. They collect a lot of information, examine all alternatives and make decisions that maximise personal satisfaction. However, we do not make decisions in…
Development as a leader is not a straight line but a journey filled with many ups and downs as you progress to peak leadership.
If motivations to lead are only power, prestige, and money, leaders risk being trapped by external gratification as the source of fulfilment.
The five types are: Imposters, who lack self-awareness and self-esteem; Rationalisers, who deviate from their values; Glory seekers, who are motivated by seeking the world’s acclaim; Loners, who fail to…
Leaders can unleash the power of their organisations when they motivate people to reach their full potential.
Self-awareness is the first element of emotional intelligence. EQ may be more important for authentic leaders than IQ.
It is easy to get pulled off course. By knowing our ethical boundaries and testing values under pressure, we are able to get back on track.
The key to developing as an authentic leader is not eschewing your extrinsic motivations but balancing them with intrinsic motivations.
Decision making is a cognitive process. Humans make errors because of motivational and emotional influences. Learn more about multiple selves here.
Economic concept of discounting states that any choice that involves a trade off between current and future benefits should discount the future.
Perceptions and expectations are biased in self-serving manner. When presented with identical information, we perceive situation in different ways.
Specific emotions influence our decision making. This is an effect of positive and negative moods. Good or bad mood results in more biased judgements.
Overconfidence effects are some of the most potent, pervasive and pernicious of any biases. It is blamed for wars, stock market bubbles, strikes, lawsuits, bankruptcy, failure of merges and acquisitions,…
Tendency to be sure judgements and decisions are accurate, uninterested in testing assumptions and dismissive evidence that suggests we might be wrong.
Tendency to think that we are better, smarter, faster, more capable, more attractive, more popular (and so on) than we actually are.
Tendency to think we rank higher than others on certain dimensions, particularly in competitive contexts.
Individuals rely on rules of thumb (heuristics) to lessen the information processing demands of making decisions.
The inferences we make about event commonness based on the ease with which we can remember instances of that event.
We are better at retrieving some subjects from our memory than other things. Individuals base judgement on commonality and easier base strategies.
People tend to ignore background information relevant to the problem such as base rate. We tend to assume that causes and consequences are related.
Simple statistics claims each event in a sequence is equally likely to occur. But individuals believe random and non-random events will balance out.
Simple statistics state that we are more likely to observe an unusual event in a small sample compared to a large one. Learn more.
People predict they will repeat their previous performance exactly. Statistics tells us that extreme performance is likely to regress to the mean over time.
These relationships can be very destructive. They slowly drain off our energy, frustrate us, and generally make for an unhealthy negative environment.
They contribute to your overall well-being and sense of feeling valued. Here, people genuinely like and admire many of the qualities the other has.
Several skills are involved in building relationships that are satisfying and nurturing. You must be prepared to make some effort to keep them going.
The failure of a product idea to be developed into a product is not necessarily a bad thing. It may save the company enormous sums of money.
The use of cross-functional teams increases creativity in a new product development, leading to shorter development time and higher product innovation.
Most new products are improvements or minor line extensions and may attract almost no attention. Other products will receive extensive coverage.