The confirming evidence trap is making a decision based on information which already confirms what you were already aware of or already leaning towards anyway. This decision is a bad choice because the deciders generally ignore other, perhaps more valuable, information. There is lots of information available and it can take a lot of time to do the necessary due diligence to make a wise decision. Most problems require us to gather data or figures or evidence so we can make an informed decision. The sunk cost trap occurs when the group has placed too much funding or emphasis on a failing venture that they choose to stay with it, to save face and regain lost revenue. It is generally the trap where a poor decision was made but rather than admit failure, they would rather try to correct the problem than face the humiliation of making a publicly bad choice. Generally, this bias is chosen when an organisation does not want to pay for a large overhaul or it seems too difficult to change what is erroneous. The status-quo trap is when the group chooses to stay with the same course of action because it is same and/or proven. This is the tendency to maintain things as they are, even when that may be significantly less than optimal. The Anchoring Trap can cause alternatives to be clustered around the “anchor,” throwing off estimates, forecasts, and consideration of wider-ranging alternatives. This can distort their thinking by preventing them from fully considering other ideas that come up later. The anchoring trap can be described as an individual or group which makes a decision based on partial data. They tend to latch onto the first information or idea they encounter about a decision and give disproportionate weight to it. They identified six hidden traps in decision making that s/he needs to be careful not to fall into. This article summarizes the key themes of this research. One of the most insightful articles was written by Harvard Professors John Hammond, Howard Raiffa and USC/Duke Professor Ralph Keeney in a 1998 HBR article titled ‘The Hidden Traps of Decision Making’. Many scholars have written books and articles about various decision-making traps. In fact, there are certain psychological traps that we all fall into, and encourage others to fall into, which can confuse seemingly straightforward decisions and lead us astray. There are hidden traps in decision making that will keep managers from making the best decisions for the company. These choices can also have a serious impact on team morale, with studies showing that poor managerial decision making is the number one reason for employees quitting their jobs. Everyday s/he is faced with multiple decisions, knowing that a single mistake can damage both the company’s fortunes and her/his own. Making decisions is the most important job of any leader. Raul might not have known it, but he and his team are caught in some common decision-making traps that can lead to frustration and inertia. He had not realized that the decision-making process could be hindering his team's progress. More notably, he also had not realized that decision-making itself is a skill that could be improved and applied to the decision with which he and his team were struggling. He also wondered if there were angles that they might be missing as they did their analysis. They especially don't want to repeat an expensive mistake another team made last month by choosing a technology that's overly complicated or hard to learn. The right solution, he feels, is right around the corner. They just need to keep digging until the right answer emerges. He and his team have been diligently gathering information for weeks. Their efforts to be thorough are causing delays, and the whole team is feeling frustrated. Raul must recommend a new ERP for his tech department.
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