What do built in bias mean?

Answer 1

o Over confidence bias - individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability. o Anchoring bias - tendency to fixate on initial information and fail to adjust for subsequent information. The mind gives a disproportionate amount of emphasis to the first information it receives. So initial impressions, ideas, prices and estimates etc carry undue weight relative to information received later. § Anytime negotiation takes place then anchoring occurs o Confirmation Bias - specific case of selective perception i.e. seek out information that reaffirms our past choices and discount information that contradicts past judgments i.e. the information we gather is biased towards supporting the views we already hold o Availability Bias - tendency to base judgment on information that is readily available to them (eg performance appraisals more like to reflect recent performance over that 6 months ago) o Representative Bias -considering the current situation as identical to past situations o Escalation of commitment -staying with a decision even when there is clear evidence that it is wrong. Indiv's escalate commitment to a failing course of action when they feel responsible for the failure. Eg: throw good money after bad to show that there initial decision was not wrong and to avoid having to admit that they made a mistake. Also congruent with evidence that people try to appear consistent with what they say and do. Increasing commitment to previous actions conveys consistency. § Consistency a characteristic associated with effective leaders. In an effort to appear effective they may be motivated to be consistent when switching to another course of action may be preferable. In actuality effective managers are those who are able to differentiate between situations in which persistence will pay off and situations in which it will not o Randomness Error - our tendency to believe we can predict the outcome of random events (eg Superstition) o Hindsight Bias - to believe falsely after an outcome is actually known that we would have accurately predicted the outcome.