Organizational decision making
Availability Bias: Availability bias occurs when whereby beings behave in certain ways in their environment. For example people tend to judge the probability of something occurring based on the first outcomes that comes to the mind that is the more memorable or vivid event. For example in the media there are a lot of cases of kidnapping and plane crashes. People assume that these events are common yet they are rare.
Egocentrism Bias: Occurs when an individual tends to judge that he is better than others. For example, the person sees himself as more charitable to help the poor or volunteer in community work in prison rather than his peers.
Illusionary correlation: Illusionary correlation can be defined as a situation whereby people assume that highly common activities are conducted by more people. This may not be necessarily true though. A behavior may be common but it does not mean the more people engage in it.
Fundamental Attribution Error: The error occurs when people tend to observe others and judge them harshly without considering other factors that may have impacted a person’s behavior. For example if a waiter is rude one may assume she is always rude yet it is just that they are facing a hard day at home. Normally the waiter is very friendly. This means a person is relying more on his own personal judgment than other situational factors to judge a situation (Miller, 2006)
Hindsight bias: Hindsight bias can be defined as a situation where people exaggerate the predictability of an outcome after it has occurred. For example, after a game or match one may hear a person say he expected the scores to be like that. He says it was to be effected.
Lens model framework: The Lens Model Framework takes place when an individual may find himself in an uncertain circumstance. This is known as a distal event .To reduce the uncertainty an individual may use the observable aspects of another known circumstance which is known as proximal cues as a basis for decision making for the uncertain or unknown situation he finds himself in. There are two aspects here, the psychological judgment and perception of the person and the real world where there is an uncertainty (Hastie, 2009). The challenge for the individual is to judge how the proximal cues relate to the distal event. Overall there are many factors that affect a person’s decision making.
Hastie, R & Dawes R. (2009) Rational Choice in an uncertain world: The Psychology of
Judgment and Decision Making. Boston: Sage publications.
Miller, Z. (2006). Fundamental Attribution Error – Basic Explanation with Some
Retrieved from: http://ezinearticles.com/?Fundamental-Attribution-Error—Basic-Explanation-With-Some-Examples&id=328220