The Impact of Bias in Business Decision Making

While I was a student in high school in the year 2011, I had been entrusted with the responsibility of organizing a group presentation related to business enterprises throughout the world. My teacher had assigned a group which I was to lead. I was elated. However, my elation was temporary as I realized that I had been exercising and practicing the inherent bias and stereotypes in my group decisions. Having discharged the role of a team leader in many school events, I was well conversant with the nuances of team building and decision-making. However, I was not aware of the disruptive bias and stereotype that I had harbored. This time our group was multicultural and had included students from various ethnic backgrounds. Due to the intrinsic biased nature, I had started exercising the stereotypical notions. I was quite biased towards the peers belonging to my country, that is, Australia. Therefore, I had decided to let my white peers present their opinions. Despite being aware of their capabilities, I had decided not to let the racially ethnic group to voice their opinions as I was biased towards my friends. Additionally, I believed that students of varied ethnic groups cannot really indulge in public speech in a predominantly White population. I was biased towards the capabilities of my friends. Due to my biased decision of allowing my friends to speak at the presentation, I had failed as a team leader. It was seen that the group presentation had failed miserably. My friends could hardly present their ideas in a correct verbal manner. On the other hand, the faculty had praised the other members for their scanty yet concrete contribution in audio and visual presentation. The presentation had failed to garner the support of the judges because neither my friends nor the other members could perform in a proper manner. Due to my biased nature, I had failed to perceive that I should have equally distributed the work amongst each member. 

A closer look at the academic literature will present the fact that the presence of bias in business decision making can pave the way for incorrect and unjustified decisions (Montibeller,& Von Winterfeldt, 2015). Recent studies are emblematic of the notion that biased decisions in business organizations can disrupt the various important processes related to the organization. Another study projects that managers are often entrusted with the task of crucial decision making (Real, Roldán& Leal, 2014). The presence of bias can impede the crucial process of decision making. Reflecting upon the incident, it can be mentioned that I had learnt about the manner in which bias can perpetrate the incorrect decisions and the resultant incorrect results. I had also learnt that biased decisions needs to be erased to achieve the correct and desired results. A closer examination of the relevant literature will project that there is a rampant presence of bias in many parts of the world (Koch, D’mello& Sackett, 2015). Bias and stereotypes go hand in hand. It is often seen that bias and bias exist in stereotyping the racially diverse and ethnic groups (Brescoll, 2016). Recent statistical data and information from news article stand as evidence for the bias that is present in every part of the world.

Importance of Unbiased Decisions in Multicultural Workforce

In the business organizations, it is crucial to arrive at decisions without any intervention of bias. The various theoretical framework of decision making depicts the models of decision making that are devoid of bias. According to the opinion of Holsapple, Lee-Post & Pakath (2014), decision making is one of the most important areas of any business organization. Decision making without bias is crucial for the future development of business organizations. It is also revealed that in a multicultural workforce, it is important to estrange bias from any decision. For example, in a multicultural workforce managers should resort to correct decisions without any bias. This can ensure the development of unity amidst the diverse workforce. Studies also present that Global Managers and their unbiased decisions are integral for managing the culturally diverse workforce. Theoretical positions also harp upon the idea of ‘psychological conflicts and bias’. These refer to the inherent biases vested in a human being. The presence of ‘confirmation bias’ refers to the preconceived notions and the manner in which human beings look for confirmation of the bias. In the above-mentioned event, the presence of ‘confirmation bias’ had compelled me to confirm my psychological bias towards the white peers’ capabilities. ‘Psychological bias’ also consists of ‘anchoring’. This refers to the manner in which the biased nature reaches to a conclusion without examining the real ideas. In addition to this, the psychological bias also encompasses the notion of ‘overconfidence bias’ (Miller, Spengler & Spengler, 2015). This refers to the manner in which human beings exhibit confidence upon the personal preconceived notions and biased ideas. 

In the given event, it is seen that I had exhibited ‘overconfidence bias’ as I had placed my biased trust upon my peers. Thirdly, psychological bias also encompasses the idea of Gamblers Fallacy (Msaouel et al., 2014). It refers to the manner in which the decisions are influenced by the belief in the past events and the resultant consequences. A closer look at the event will project that though there was no involvement of the past events, the biased decision had disrupted the event. The above-mentioned event is important because it taught me the negative role of bias and the importance of erasing bias to enhance the processes of decision making. It also taught me the value of unbiased decisions at the workplace.In addition to this, the theoretical perspectives on bias also emphasizes upon the notion of cognitive debiasing (Norman et al., 2017). This refers to the cognitive process of mental correction that takes place after cognitive recognition of the flaws. This can assist in erasing the presence of bias and the resultant activities perpetrated by bias. It can be said that in the given scenario, the implementation of ‘cognitive debiasing’ could have ushered a proper resolution of the issue related to faulty decision making. 

Theoretical Perspectives on Bias in Decision Making

It has to be accepted that a future life envisioned in the next three years will include the best practices. The best practices in my future life will include the practices and endeavors that does not focus on the generation of bias in the aspects of decision making. The chosen topic of decision making will help me in the future endeavors related to business related activities in the organization. This will also help me in successfully removing all bias while arriving at crucial decisions in relation to the development of the organization. The chosen topic and experience will assist in the development of my personal perceptions and cognitive ideas associated with the presence of bias. In the future professional activities, the learnt ideologies can ensure the proper execution of policies and notions without any tampered decisions. I envision a future life where I have successfully incorporated cognitive debaising, which will pave the way for unbiased decisions. Within the next three years, I envision a life that does not emphasize on the perpetration of the stereotypical notions connected to the preconceived prejudices and ideas about people belonging to racially and ethnic diversity. The changes that shall be incorporated shall be reflected in the daily activities.

The previous experience had impressed upon me the need to remove bias in the decision making processes. From the journal reflection I had learnt that depriving any section of society based on biases can only pave the way for incorrect decision. I had also learnt that for the concretization of the decision making, it is extremely crucial to erase the existence of bias. Reflecting upon my learning experience, I can mention that my envisioned future life shall be bereaved of psychological bias.

In addition to this, I also want my future life to improve drastically in the next three years. I can visualize a life where my activities are not implemented on the basis of cognitive biases. In my career enterprises, I harbor a vision of exhibiting the role of an efficient team leader who strives to take into consideration the will and capabilities of each member, irrespective of the cultural or ethnic lineage. Within the next three years, I shall endeavor to lead a life that does not practice or implement biased opinions that is dependent upon the personal preferences directed towards one group or class.

I believe in the notion that after incorporating the desired and important changes, I can bring forth improvements and the desired outcomes. I also believe in the fact that the cognitive and personal changes can ensure the development of the correct practices. I envision a future life where I participate in corrective practices and propagate the perpetration of correct practices in business sector.

In addition to this, it can be mentioned that I can envision a future life where the team works are concretized through the equal distribution of work irrespective of the preconceived notions related to the capabilities. I can exhibit confidence in the fact that in the future, I will resort to unbiased decision making. 

Goal	What actions will I take?	When	How to measure the success?
To arrive at unbiased as well as correct decisions in team work and other enterprises.	· This shall be achieved by following an unbiased manner. · This shall also be achieved by the deleting the various bias that are present while decision making. · This shall also be achieved by taking into consideration the capabilities of each member, irrespective of race or gender.	By the end of 2020	This can be measured by the nature of the decisions. This can also be measured by the impact and the consequence of the decision.
To inculcate equal distribution of work to each team member irrespective of the preconceived and stereotypical biased notions related to varied cultural and ethnic groups.	· This shall be achieved by the incorporation of equal representation of each member. · This shall be achieved by the inculcation of corrective measures in future activities.	By the end of 2020	This can be measured by the nature of the distributed work and the Participation Rates of each group member.
To arrive at proper decision making processes so as to enable the equal participation of each member	· This shall be achieved by the incorporation of proper decision making models. · This shall be achieved by the implantation of the decision making models.	By the end of 2020	This can be measured by the correct decision making model that is applied in the cases.
To incorporate the ideologies of cognitive debiasing to ensure the deletion of the presence of various biases.	· This shall be achieved by interacting with the members belonging to various culture in an unbiased manner. · This shall also be achieved by imbibing the new ideas that can pave the way for the deletion of bias. Recent studies reveal that it is crucial to erase bias to ensure proper decisions (Erskine et al., 2014).	By the end of 2020	This can be measured by the nature and the number of activities that are organized. This can also be measured by the manner in which I interact with people in an equal manner.
To take into consideration the perspective of each member before arriving at unbiased decisions.	· I shall achieve this by communicating with each member. Studies reveal that it is crucial to establish proper unbiased communication in group activities (Järvelä et al., 2015).	By the end of 2020	This can be measured by the equal participation of each member in the activities and the unbiased manner of the activities. This can be measured by the Participation Rate of the members.

References

Brescoll, V. L. (2016). Leading with their hearts? How gender stereotypes of emotion lead to biased evaluations of female leaders. The Leadership Quarterly, 27(3), 415-428. DOI: https://dx.doi.org/10.1016/j.leaqua.2016.02.005

Erskine, M., Gregg, D., Karimi, J., & Scott, J. (2014). Business decision-making using geospatial data: a research framework and literature review. Axioms, 3(1), 10-30. DOI: doi:10.3390/axioms3010010

Holsapple, C., Lee-Post, A., & Pakath, R. (2014). A unified foundation for business analytics. Decision Support Systems, 64, 130-141. DOI: https://dx.doi.org/10.1016/j.dss.2014.05.013 0

Järvelä, S., Kirschner, P. A., Panadero, E., Malmberg, J., Phielix, C., Jaspers, J., … & Järvenoja, H. (2015). Enhancing socially shared regulation in collaborative learning groups: designing for CSCL regulation tools. Educational Technology Research and Development, 63(1), 125-142. DOI: doi:10.3390/axioms3010010

Koch, A. J., D’mello, S. D., & Sackett, P. R. (2015). A meta-analysis of gender stereotypes and bias in experimental simulations of employment decision making. Journal of Applied Psychology, 100(1), 128. DOI: https://dx.doi.org/10.1037/a0036734

Miller, D. J., Spengler, E. S., & Spengler, P. M. (2015). A meta-analysis of confidence and judgment accuracy in clinical decision making. Journal of Counseling Psychology, 62(4), 553. DOI: https://dx.doi.org/10.1037/cou0000105

Montibeller, G., & Von Winterfeldt, D. (2015). Cognitive and motivational biases in decision and risk analysis. Risk Analysis, 35(7), 1230-1251.DOI: 10.1111/risa.12360

Msaouel, P., Kappos, T., Tasoulis, A., Apostolopoulos, A. P., Lekkas, I., Tripodaki, E. S., & Keramaris, N. C. (2014). Assessment of cognitive biases and biostatistics knowledge of medical residents: a multicenter, cross-sectional questionnaire study. Medical education online, 19(1), 23646. DOI: DOI: 10.3402/meo.v19.23646

Norman, G. R., Monteiro, S. D., Sherbino, J., Ilgen, J. S., Schmidt, H. G., & Mamede, S. (2017). The causes of errors in clinical reasoning: cognitive biases, knowledge deficits, and dual process thinking. Academic Medicine, 92(1), 23-30. DOI: 10.1097/ACM.0000000000001421

Real, J. C., Roldán, J. L., & Leal, A. (2014). From entrepreneurial orientation and learning orientation to business performance: analysing the mediating role of organizational learning and the moderating effects of organizational size. British Journal of Management, 25(2), 186-208.DOI: 10.1111/j.1467-8551.2012.00848.x