ISBM at the Penn State Smeal College of Business – Academic Institute supporting B2B Research. Switch to the ISBM-Corporate website.
Assumptions are a barrier to new thinking or new solutions though – and that makes assumptions ineffective. How can an organization uncover – and, more important – challenge its assumptions? It is a necessary process, as untested assumptions may lead decision making astray.
This article reports on survey research among the CEOs of over 500 Chinese firms. The research discusses three biases and how they affect CEO decision making during the pandemic. The optimism-versus-pessimism bias impacts aspects like leadership, employee engagement, and messaging. Another source of bias comes from a cost focus – as opposed to a people focus. The third aspect of this research is the short-term-versus-long-term bias, affecting survival of the firm.
Decision making is – mostly – done by humans. And human beings are not necessarily always rational beings. Some of our business decisions are affected by cognitive and organizational biases. McKinsey has collected articles in their “Bias Busters series”, which presents articles on the most common biases and ways you can address them.
© 2024 ISBM – Institute for the Study of Business Markets
484 Business Building
University Park, PA 16802
Phone: 814-863-2782
Fax: 814-863-0413
Email: ISBM@psu.edu
© 2020 ISBM – Institute for the Study of Business Markets