Tag Archives: Bias

Creating Productive Thought Patterns

Albert Ellis

Albert Ellis

Leaders’ actions actions are influenced by unspoken self-talk.
Sometimes, these thoughts are self-critical and provoke anxiety.

Aaron Beck

Aaron Beck

Cognitive Behavior Therapy (CBT), developed by University of Pennsylvania’s Aaron Beck, provides a systematic way to notice and restructure “irrational self-talk.
Similar approaches were developed by Albert Ellis in Rational-Emotive Therapy (RET), and David Burns in his synthesis of CBT and RET.

David Burns

David Burns

Arizona State University’s Charles Manz and Chris Neck  translated these self-management processes to managerial development.
They outlined a Thought Self-Leadership Procedure as a five-step circular process:

Charles Manz

Charles Manz

1. Observe and record thoughts,

2. Analyze thoughts for potential errors in reasoning (jumping to conclusions, exaggeration),

3. Substitute alternate positive, realistic, plausible, acceptable thoughts,

4. Monitor personal reactions to these thoughts,

5. If more negative thoughts appear, continue to substitute the more productive thoughts.

Screenshot 2023-03-04 at 10.06.57

John Crimmins

John Crimmins

Other recommendations to manage thoughts about stressful situations were distilled by John Crimmins of Behaviour Institute in coaching people at work.

He suggested asking the following questions:

  • How do I know if this thought is true?
  • What evidence do I have to support this thought or belief?
  • How can I test my assumptions/beliefs to find out if they’re accurate?
  • What would a trusted friend say about these thoughts?
  • How is this thought helpful now?
  • What other ways that I can think about this situation?
  • What would a friend say when I blame myself in this situation?
  • What would I say to a friend who was in this situation?
  • What would a friend say to me when I take this situation personally?
  • How can I consider this situation on a continuum rather than in either-or terms?

-*What practices do you use to develop and apply productive thought patterns?

©Kathryn Welds

“Strategic Umbrage” as Negotiation Strategy

Daniel R Ames

Daniel R Ames

Negotiation assertiveness style and understanding how others perceive assertive behaviours can determine success in bargaining, according to Columbia University’s Daniel Ames and Abbie Wazlawek.

Individuals who apply more assertiveness than required to achieve their goals have less-accurate self-perception than less assertive people, and both groups experience “self-awareness blindness.

Abbie Wazlawek

Abbie Wazlawek

A mismatch between negotiation partners’ ratings of appropriate assertiveness was linked to poorer negotiation outcomes for both parties.

Nearly 60% of negotiators who were rated as appropriately assertive but felt over-assertive (“line-crossing illusion”) negotiated the inferior deals for themselves and their counterparts. 

This finding suggests that disingenuous emotional displays (such as “strategic umbrage” – feigned anger) were associated with a negotiation partner seeking the first acceptable deal
This reduces the opportunity to achieve an optimal outcome for both participants.

Jeffrey Kern

Jeffrey Kern

Negotiators can increase their accuracy in judging their negotiation partner’s impression of their degree of assertiveness in the negotiation, (“meta-perception“) by:

-Participating in 360 degree feedback,

-Increasing skill in listening for content and meaning,

Considering whether negotiation proposals are reasonable in light of alternatives,

-Requesting feedback on reactions to “strategic umbrage” displays to better understand perceptions of “offer reasonableness,

-Evaluating costs and benefits of specific assertiveness styles.

Gary Yukl

Over-assertiveness may provide the benefit of “claiming value” in a negotiation but may lead to ruptured interpersonal relationships, according to Jeffrey M. Kern of Texas A&M, SUNY’s Cecilia Falbe and Gary Yukl.

Cultural norms for assertiveness vary across countries. 
In “low context” cultures like Israel, dramatic displays of emotion and assertion are  expected in negotiations.
In contrast, “high context” cultures like Japan, require more nuanced assertiveness, with fewer direct disagreements and fewer “strategic umbrage” displays, according to Edward T. Hall, then of the U.S. Department of State.

Edward T Hall

Edward T Hall

Under-assertiveness may minimise interpersonal conflict, but may lead to poorer negotiation outcomes and undermined credibility in future interactions, according to Ames’ related research.

To augment a less assertive style, he suggested:

  • Set slightly higher goals,
  • Reconsider assumptions that greater assertion leads to conflict,
  • Increase proactivity to show respect and improve outcomes,
  • Observe outcomes when collaborating with more assertive other people.

To modulate a more assertiveness style:

  • Make slight concessions to increase trust with others,
  • Evaluate the outcomes when collaborating with less assertive other people.

*How do you match your degree of assertiveness to negotiation situations?

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©Kathryn Welds

Gender Transitions Show Gender Differences in Pay, Workplace Experience

People who change gender continue to use their education and experience at work. However, many of these people report that their compensation, degree of respect, and recognition at work changed following gender change.
This suggests that gender can directly affect compensation and workplace interactions.

Two Stanford professors’ personal experiences in gender transition were highlighted by University of Chicago’s Kristen Schilt.

Joan Roughgarden

Joan Roughgarden – Jonathan Roughgarden

Stanford’s Joan Roughgarden, was an evolutionary biologist for more than 25 years as Jonathan Roughgarden before she made her male-to-female (MTF) transition.
Known for her work integrating evolutionary theory with Christian beliefs (“theistic evolutionism”), she reported feeling less able to make bold conjectures and no longer had “the right to be wrong.”

Her experience contrasts with Stanford colleague, neurobiologist Ben Barres, who made scientific contributions as Barbara Barres until after he was 40.

Barbara Barres - Ben Barres

Barbara Barres – Ben Barres

After his female-to-male (FTM) transition, Ben delivered a lecture at Whitehead Institute, where an audience member commented, “Ben Barres gave a great seminar today, but, then, his work is much better than his sister’s.”

Schilt surveyed FTM and MTF to compare earnings and employment experiences before and after gender transitions with questions similar to 2002 Current Population Survey (CPS) survey items:

  • Last job before gender transition,
  • First job after gender transition,
  • Most recent job.

Kristen Schilt

Kristen Schilt

Female-to-male transsexuals (FTMs) reported that as men, they had more authority, reward, and respect in the workplace than they received as women, even when they remained in the same jobs.

Height and skin color affected potential advantages enjoyed by FTM.

Tall, white FTMs experienced greater benefits than short FTMs and FTMs of color.
In contrast, MTF reported reduced authority and pay, and often harassment and termination.

University of Illinois’s Donald McCloskey, for example, was told by his department chair “in jest” that he could expect a salary reduction when he became Deirdre McCloskey.

Deirdre McCloskey

Deirdre McCloskey

However, salary reduction was no joke for MTFs in Schilt’s survey sample.
Participants reported significant losses of 12% in hourly earnings after becoming female.

Additionally, MTFs transitioned on average 10 years later than FTMs, delaying the loss of financial advantages attributable to male gender.

FTMs, however, experienced no change in earnings or small positive increases up to 7.5% in earnings after transitioning to becoming men.

Any gender transition was associated with risks of harassment and discrimination, reported more frequently in “blue-collar” jobs, particularly for those with “non-normative” appearance and not consistently “passing” as the other gender.

These “naturalistic experiments” confirm continuing gender-based pay discrepancies.

-*To what extent have you observed these gender-linked differences in compensation and workplace credibility?

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©Kathryn Welds

Mindfulness Meditation Improves Decisions, Reduces Sunk-Cost Bias

Sigal Barsade

Sigal Barsade

Andrew Hafenbrack

Andrew Hafenbrack

Sunk-cost bias” is the tendency to continue unsuccessful actions after time and money have been invested.
Frequent examples include:

  • Holding poorly-performing stock market investments,
  • Staying in unsatisfying personal relationships,
  • Continuing ineffective military engagements.
Zoe Kinias

Zoe Kinias

In these cases, people focus on past behaviors rather than current circumstances, leading to emotion-driven decision biases.

Brief meditation sessions can help decision makers consider factors beyond past “sunk costs,” reported Wharton’s Sigal Barsade, with Andrew C. Hafenbrack and Zoe Kinias of INSEAD.

Meditation practices can:

  • Increase focus on the present moment,
  • Shift attention away from past and future actions,
  • Increase positive emotions.
Kirk Brown

Kirk Brown

The team asked volunteers to complete Mindful Attention Awareness Scale,  developed by Virginia Commonwealth University’s Kirk Brown and Richard Ryan of University of Rochester.

Richard Ryan

Richard Ryan

They also measured participants’ ability to resist “sunk cost” bias using Adult Decision-Making Competence Inventory, developed by Leeds University’s Wändi Bruine de Bruin with Baruch Fischhoff of Carnegie Mellon and  RAND Corporation’s Andrew M. Parker.

Wändi Bruine de Bruin

Wändi Bruine de Bruin

In a decision task, participants could take an action or to do nothing, as a measure of sunk-cost bias.
Taking action indicated resistance to the sunk-cost bias, whereas those who took no action were influenced by the sunk-cost bias.

Baruch Fischhoff

Baruch Fischhoff

Volunteers who listened to a 15-minute focused-breathing guided meditation were more likely to choose action, resisting sunk-cost bias, than those who had not heard the meditation instruction.

Andrew M Parker

Andrew M Parker

Barsade’s team noted that, “People who meditated focused less on the past and future, which led to them experiencing less negative emotion. That helped them reduce the sunk-cost bias.

Jochen Reb

Jochen Reb

Mindful attention enabled negotiators to craft better deals by “claiming a larger share of the bargaining zone” in “fixed pie” negotiations, found Singapore Management University’s Jochen Reb, Jayanth Narayanan of National University of Singapore, and University of California, Hastings College of the Law’s Darshan Brach.
Effective negotiators also expressed greater satisfaction with the bargaining process and outcome. 

Jayanth Narayanan

Jayanth Narayanan

Mindful attention also leads to a lower negativity bias, the tendency to weigh pessimistic information more heavily than positive, reported Virginia Commonwealth University’s Laura G. Kiken and Natalie J. Shook of West Virginia University.

The team assessed negativity bias with BeanFest, a computer game developed by Shook, with Ohio State’s Russell Fazio and J. Richard Eiser of University of Sheffield.

Natalie Shook

Natalie Shook

Participants associated novel stimuli with positive or negative outcomes during attitude formation exercises.

Russell Fazio

Russell Fazio

Volunteers who listened to a mindfulness induction correctly classified positive and negative stimuli more equally, expressed greater optimism, and demonstrated less negativity bias than those in the control condition.

J Richard Eiser

J Richard Eiser

Mindful attention improves decision-making and enhances negotiation outcomes by reducing biases linked to negative emotions.

As a result, taking a brief mental break (“time-out”) during decision-making can improve choices and can reduce the possibility that “the wrong emotions cloud the decision-making process.”

-*How do you reduce bias in making decisions and crafting negotiation proposals?

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 ©Kathryn Welds

Transference in Everyday Life Biases Inferences, Emotional Responses

-*Do you re-enact scenarios from your past, but with different people?

Sigmund Freud

Sigmund Freud

 Sigmund Freud described this experience as “transference,” redirecting feelings toward one person in the past onto a different individual in the present.

The current recipient of feelings may have different characteristics, motivations, and behaviours than the original person, but something about the present individual triggers earlier feelings and actions.

Susan Andersen

Susan Andersen

NYU’s Susan Andersen and Alana Baum demonstrated transference in lab studies when they asked volunteers to describe important people in their lives for whom they had positive feelings or negative feelings.
They also described other people’s significant others.

Later, Anderson and Baum described a person seated in the adjacent room, using either emotionally-positive or emotionally-negative descriptions of someone from the volunteer’s life or someone else’s life.

Participants more accurately recalled the stranger’s description when it resembled their own significant other.
Recall was enhanced because the significant other’s description was memorable, suggesting transference.

Biased inference can result from a memory’s “accessibility” and distinctiveness, according to Anderson’s collaborators Steve W. Cole and Noah Glassman.

Transference is an outgrowth of attachment to others in the past, according to Queens College’s Claudia Chloe Brumbaugh and R. Chris Fraley University of Illinois.

R. Chris Fraley

R. Chris Fraley

Participants in their study read profiles of two potential dating partners:  One description resembled a romantic partner from the person’s past, and another description matched a different participant’s former partner.

Volunteers reported feeling more comfortable and more anxious toward potential dating partners described as similar to previous significant others.
Brumbaugh and Fraley noted that participants “applied attachment representations of past partners” to any potential future partner, and when the new partner’s description resembled an important past partner.

Susan Fiske

Princeton’s Susan Fiske described this transfer of affective responses to a new individual as schema-triggered affect.
Andersen used this framework and a socio-cognitive explanation in a paper with Berkeley’s Serena Chen.

Serena Chen

Serena Chen

People modify views of themselves and others in transference situations, reported Katrina Hinkley and Andersen.
Volunteers in their research demonstrated biased recall about a new person when the person resembled of a previous significant other.
When participants were re-tested, their recall of the new person’s attributes included elements of themselves when they were with the former significant person.

Michael Kraus

Michael Kraus

Transference occurs even when a target person possesses an attribute incompatible with the significant other’s characteristics, found University of Illinois’s Michael W. Kraus with Berkeley’s Chen, Victoria A. Lee, and Laura D. Straus.

Participants demonstrated transference in biased memories and judgments about a person they perceived as similar to a former significant other.

The research team elicited positive impressions even when the target was from a different ethnic group.
This suggests that stigma and discrimination may be reduced by evoking positive transference from past experiences to present actors.

Baum and Anderson observed that participants’ current mood was more positive when the target of their transference resembled their significant other and occupied a similar role to the original person.

Transference in the workplace can be problematic when employees react to one another as they responded to others from the past, introducing unconscious emotional elements to work situations.

-*How do you manage transference reactions in work and social situations?

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Attractiveness Bias in Groups

Edward Vul

Edward Vul

Individuals were rated as more attractive when they were observed in a group rather than alonereported University of California, San Diego’s Drew Walker and Edward Vul.

Individuals are generally perceived as similar but not identical to the average group face.
This group average is seen as more attractive than group members’ individual faces, thanks to a perceptual bias called the ”cheerleader effect.

People who are judged attractive are also ascribed positive characteristics including good health, good genes, intelligence, and success as a result of attribution bias.

Michael Cunningham

Michael Cunningham

There is consensus across cultures and genders on ratings of physical attractiveness, found University of Louisville’s Michael R. Cunningham, Anita P. Barbee, Perri B. Druen, who collaborated with Alan R. Roberts of Indiana University and Chung Yuan Christian University’s Cheng-Huan Wu.

Features rated as most attractive for women include: 

  • High cheekbones and forehead,
  • Fuller lips,
  • Large, clear eyes,
  • Shorter jaw,
  • Narrower chin,
  • Waist-to-hips ratio of 7:10,
  • Body Mass Index (BMI) of 20.85.
Alan Roberts

Alan Roberts

Women’s weight was not as significantly related to attractiveness as the elements above.

Preferred characteristics for men were:

  • Large jaw and brow,
  • Prominent cheekbones,
  • Broad chin,
  • Waist-to-hips ratio of 9:10,
  • About 12 percent body fat.


    Smooth skin, shiny hair, and facial symmetry were rated as attractive for both women and men.

Genevieve Lorenzo

Genevieve Lorenzo

Individuals’ physical attractiveness focuses observers’ attention, and enables assessments of personality traits based on brief interactions, according to University of British Columbia’s Genevieve Lorenzo and Jeremy Biesanz with Lauren Human of University of California, San Francisco.

Jeremy Biesanz

Jeremy Biesanz

Observers more accurately identified personality traits of physically attractive people  and these ratings were more similar to attractive people’s self-reported personality traits.

Lauren Human

Lauren Human

Volunteers showed a positive bias toward attractive people and accurately identified the relative ordering of attractive participants’ Big Five personality traits (extraversion, conscientiousness, agreeableness, openness to experience, and emotional stability -“neuroticism”).

Nicholas Rule

Nicholas Rule

Raters also accurately evaluated CEOs’ competence, dominance, likeability, maturity, and trustworthiness by viewing photographs of the executives’ faces in a study by University of Toronto’s Nicholas Rule and Nalini Ambady, then of Tufts.

Nalini Ambady

Nalini Ambady

Thirty volunteers assessed CEOs’ “leadership success” based on appearance alone, and these rating were significantly related to profitability of the organizations the CEOs led.

John Graham

John Graham

CEOs and non-executives compete in an unconscious “corporate beauty contest,” asserted John Graham, Campbell Harvey and Manju Puri of Duke.
Those viewed as attractive are assigned positive attributions, according to these researchers.

Photos of more than 100 white male chief executive officers of large and small companies were paired with with photos of non-executives with similar facial features, hairstyles and clothing.

Campbell Harvey

Campbell Harvey

Nearly 2,000 participants assessed photos and rated CEOs as competent and attractive more frequently than non-executives.
However, volunteers were less likely to rate CEOs as likeable and trustworthy.

Those rated as “competent” earned more money, but in this study, CEO appearance wasn’t associated with company profitability.

Elaine Wong

Elaine Wong

Specific facial structures, not just attributed personality traits, were associated with superior business results, according to University of Wisconsin’s Elaine Wong and Michael P. Haselhuhn working with Margaret E. Ormiston of London Business School.

Firms that achieved superior financial results tended to have male CEOs with wider faces relative to facial height, particularly among organizations with “cognitively simple leadership teams.”

Margaret Ormiston

Margaret Ormiston

Evolutionary biology suggests that specific facial structures may be perceived as associated with trustworthy leadership skills, leading to attributions of competence, and inspiring loyalty to follow.

-*What positive bias do you observe toward attractive individuals in the workplace? 

-*How do you harness the positive bias toward attractive individuals?

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©Kathryn Welds

Ask for What You Want: You Have More Influence Than You Think

Most people underestimate the likelihood that requests for help will be granted, particularly after previous refusals, according to Stanford’s Daniel Newark and Francis Flynn with Vanessa Lake Bohns, then of University of Waterloo.

Francis Flynn

In fact, most people agree with a subsequent request, possibly to reduce discomfort of rejecting others’ overtures for help.

Vanessa Bohns

Vanessa Bohns

Participants estimated they would need to ask 10 people to get three people to lend their mobile phones for brief calls.
Results showed that volunteers had to ask just six people for help before they received assistance.
The team concluded that most people have a pessimistic bias about the likelihood that others will provide assistance.

In another study, volunteers requested two favours from people they did not know: 

1. Complete a brief survey
2. Take a letter to a nearby post office.

Help seekers predicted that people who refused the first request to complete the survey would be less likely to take the letter to the post office.

More people agreed to the second request than to the first request.
Requesters tended to “anchor” on the first refusal, and hesitated to make a second request.
This finding suggests that requesters have a greater chance of agreement after initial refusal, so it’s advisable to persist.

The researchers concluded that help-seekers and potential helpers analyzed requests according to different criteria. Help-seekers typically considered the magnitude of the “ask,” whereas potential helpers considered the inconvenience costs of saying “yes” compared with the interpersonal and self-image costs of saying “no.”

Requesters benefit from expanding the pool of those they ask, not just those who consistently agree.
Potential helpers to can assist by reducing help-seekers’ subjective discomfort even if they decline the request.

Mahdi Roghanizad

Mahdi Roghanizad

Bohns analysed interpersonal discomfort when people decide whether to commit an unethical act in research with University of Waterloo colleagues Mahdi Roghanizad and Amy Xu.

People who observed the unethical act but didn’t participate in it underestimated their influence over those who committed the actions.
Interpersonal discomfort caused participants to commit the asocial act to avoid conflict, they concluded.

Volunteers asked people they didn’t know to tell a small untruth or to commit a small act of vandalism after predicting the ease of enlisting others in these acts.
In related investigations, online participants responded to hypothetical vignettes about buying alcohol for children, and taking office supplies home for personal use.

These results suggest that most people underestimate their influence, particularly in situations that can evoke interpersonal discomfort, including in the workplace.

This pessimistic bias can limit employees’ willingness to:

  • Lead business transformation initiatives,
  • Recognize one’s own contributions to others’ performance issues,
  • Voice concerns about unethical workplace practices.

This underestimation bias may be reduced by:

  • Eliciting comparative judgments,
  • Objectifying an influence target,
  • Comparing actual degree of personal influence compared to perceived influence,
  • Considering the means of influence, including incentives, suggestions, reinforcements, punishments,
  • Invoking organizational culture. 

These findings suggest the benefit of asking for what you want, even after rejection and that you have more influence over others than you expect.

-*How do you assess your likelihood of getting what you want when you ask?

-*How likely are others to influence you by evoking social discomfort to increase your compliance?

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©Kathryn Welds

Attractive Men May Appear Competent, But May Not Be Hired in Competitive Situations

Sun Young Lee

Sun Young Lee

Previous blog posts documented bias favouring attractive people for hiring, venture funding, and positive impressions by others.

Capable but less attractive individuals may encounter “workplace attractiveness discrimination,” reported Sun Young Lee of University College London, University of Maryland’s Marko Pitesa, Madan Pillutla of London Business School, and INSEAD’s Stefan Thau.

Marko Pitesa

Marko Pitesa

Their studies found that people making employment decisions show systematic selection bias based on candidates’ perceived attractiveness and organizational context.

Selection bias can occur when observers associate unrelated characteristics (gender, ethnicity, national origin, attractiveness) with expectations for work performance (“status generalization”).

Murray Webster

Murray Webster

These assumptions may occur without conscious awareness and without evidence, and can result in group inequalities, according to University of South Carolina’s Murray Webster and Martha Foschi.

James Driskell

James Driskell

Unrelated characteristics, including attractiveness, significantly affected face-to-face interactions in group task experiments by Webster and University of South Carolina colleague James Driskell.

Martha Foschi

Martha Fosch

Decision makers associated attractiveness with competence in male candidates but not in female candidates in one of Lee’s studies.

Interpersonal interdependence occurs when perceived attractiveness affects people’s decisions and actions, according to UCLA’s Harold Kelley and John Thibaut of University of North Carolina.

John Thibault

John Thibault

Lee’s group studied this relationship by assigning male and female volunteers to simulated employment selection situations.
Participants “interviewed” and provided “hiring recommendations” for “job candidates.”
Interviewers were told they would be collaborating for shared team rewards BUT competing for recognition, promotions, commissions, and bonuses.

Madan Pillutla

Madan Pillutla

Volunteers evaluated two similar resumes accompanied by photos of an “attractive” applicant and an “unattractive” candidate.
Next, assessors answered questions about the person’s competence, likely impact on the rater’s success, and their likelihood of recommending the candidate for the position.

When the decision-maker expected to cooperate with the candidate, male candidates who were perceived as more attractive were:

-judged as more competent,
-seen as more likely to enable the evaluator’s career success,
-more frequently recommended for employment.

Stefan Thau

Stefan Thau

However, when decision makers expected to compete with the candidate, attractive male candidates were rated as less capable.
Evaluators less frequently recommended attractive male candidates for employment, suggesting a systematic bias to preserve the evaluator’s place in the workplace hierarchy.

Attractive and unattractive female candidates were judged as equally competent, but attractive male candidates were rated as much more competent than unattractive male candidates.

Subsequent studies provided evaluators with candidates’ age, race, education and headshot to consider in selecting their competitor or collaborator in a tournament task.
Decision-makers preferred attractive male or female candidates unless their personal outcomes were affected by the selection decision.

These studies suggest that attractiveness discrimination is “calculated self-interested behavior” in which men sometimes discriminate in favor and sometimes against attractive males.

-*How do you align with “calculated self-interest behavior” to mitigate bias?

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©Kathryn Welds

Ethnic Diversity Reduces “Groupthink,” Economic “Bubbles”

Most people are unlikely to trust recommendations and evaluations from people of different ethnic groups.

Sheen Levine

Sheen Levine

However, this bias may reduce the “herd mentality” that characterized price “bubbles” in U.S. housing and global financial markets, reported Columbia’s Sheen S. Levine, Evan P. Apfelbaum of MIT, Goethe University’s Mark Bernard, Texas A&M’s Valerie L. Bartelt, Edward J. Zajac of Northwestern, and University of Warwick’s David Stark.
They concluded that, “Diversity facilitates friction that enhances deliberation and upends conformity.”

Economic “bubbles” occur when the majority of traders set inaccurate prices, probably influenced by a type of  “groupthink.
This cognitive error results in a mismatch between market prices and true asset values.

Irving Janis

Irving Janis

Groupthink can occur when three conditions interact, according to Yale’s Irving Janis:

  • Group Cohesiveness
    • Deindividuation” occurs when group belonging becomes more important than individual dissenting views,
  • Group Structure
    • Homogeneity of group’s social backgrounds and ideology,
    • Group insulation from feedback,
    • Lack of impartial leadership,
    • Lack of norms to conduct systematic analysis and clearly structured decision procedures,
  • Context
    • Stressful external threats,
    • Recent failures,
    • Decision-making difficulties,
    • Moral dilemmas.

      Scott E. Page

A wider range of viewpoints leads to less groupthink and more balanced decisions in a mathematical model developed by University of Michigan’s Scott E. Page and Lu Hong of Loyola University.

Diverse groups ran into fewer “dead ends” when they developed solutions than did groups comprised of individuals who tended to think similarly.

David A. Thomas

David A. Thomas

Likewise, Georgetown’s David A Thomas and Robin J. Ely of Harvard confirmed that identity-diverse groups can outperform homogeneous groups
summarized in a formula:

Collective Accuracy = Average Accuracy + Diversity.

To test the impact of group diversity on market “bubbles,” Levine’s group constructed experimental markets in Singapore and Texas, USA, in which participants traded stocks to earn money.

Evan Apfelbaum

Evan Apfelbaum

More than 175 volunteers with backgrounds in business or finance were randomly-assigned to groups of six ethnically-homogeneous or ethnically- diverse participants.

Traders knew the ethnic composition of their groups, but they couldn’t communicate with each other.
In addition, their “trades” of dividend-paying stock were anonymous.

Homogeneous groups set inflated selling prices, yet traders in those groups bought the stock, resulting in increasing stock prices.

Mark Bernard

Mark Bernard

In contrast, traders in diverse groups refused inflated selling prices, so the stock price fell to approximately the price in an “ideal” market with “rational” traders.

When traders and other decision-makers come from similar ethnic, social, and attitudinal backgrounds, they tend to place undue confidence in others’ opinions, and tend not to subject them to rigorous analysis.

Valerie Bartelt

Valerie Bartelt

As a result, people in homogeneous may be more likely to accept prices and deals that deviate from actual underlying values.
Levine’s group concluded that “homogeneity…imbues people with false confidence in the judgment of coethnics, discouraging them from scrutinizing behavior.”

  • How do you mitigate “groupthink” in organizational decision-making?

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©Kathryn Welds

Comparative Rankings May Reduce Gender Bias in Career Advancement

Iris Bohnet

Iris Bohnet

An “evaluation nudge” is a decision framing aid that may reduce biased judgments in hiring, promotion, and job assignments, according to Harvard’s Iris Bohnet, Alexandra van Geen, and Max H. Bazerman.

Alexandra van Geen

Alexandra van Geen

They recommended that organizations evaluate multiple employees simultaneously rather than each person independently.
This approach differs from “Stack Ranking” (“Rank and Yank”), advocated by GE’s Jack Welch and critiqued by many.

Multiple simultaneous evaluations are frequently used for hiring decisions, but less frequently when considering employee candidates for developmental job assignments and promotions.

Max Bazerman

Max Bazerman

Bazerman and Sally B. White, then of Northwestern with George F. Loewenstein of Carnegie Mellon demonstrated preference reversals between joint and separate evaluation.

George F. Loewenstein

George F. Loewenstein

Lack of comparison information in separate evaluation typically leads people to rely on internal referents as decision norms. These internal criteria may be biased preferences, according to Princeton’s Nobel laureate Daniel Kahneman and Dale T. Miller of Stanford.

Dale T. Miller

Dale T. Miller

Lack of comparative referents also can lead evaluators to rely on easily calibrated attributes, found University of Chicago’s Christopher K. Hsee.
Both of these mental shortcuts can systematically exclude members of under-represented groups.

Christopher K. Hsee

Christopher K. Hsee

Another problem is the “want/should” battle of emotions and preferences, outlined by Bazerman and Ann E. Tenbrunsel of Notre Dame, with Duke’s Kimberly A. Wade-Benzoni in their provocatively titled article, “Negotiating with Yourself and Losing.”

Ann E. Tenbrunsel

Ann E. Tenbrunsel

They argue that the want self” tends to dominate when deciding on a single option because there’s less information and less need to justify the decision.
In contrast, the more analytic “should self” is activated by the need to explain decision rationales.

Kimberly Wade-Benzoni

Kimberly Wade-Benzoni

Bohnet’s team asked more than 175 volunteer “employees” to perform a math task or a verbal task, then 554 “employer” evaluators (44% male, 56% female) received information on “employees’” past performance, gender, and the average past performance for all “employees.”

“Employers” were paid based on their “employees’’” performance in future tasks, similar to managerial incentives in many organizations.
Consequently, “employers” were rewarded for selecting people they considered effective performers.
Based on information about “employee” performance, evaluators decided to:

  • “Hire” the “employees,” or
  • Recommend the “employees” to perform the task in future, or
  • Return “employees” to the pool for random assignment to an employer.

Keith E. Stanovich

Keith E. Stanovich

The Harvard team found that “employers” who evaluated “employees” in relation to each other’s performance were more likely to select employees based on past performance, rather than relying on irrelevant criteria like gender.

Richard F. West

Richard F. West

In contrast, more than 50% of “employers” evaluated each candidate separately without reference to other “employees,” selected under-performing people for advancement.
Only 8% of employers selected under-performers when comparing “employees” to each other, and multiple raters for multiple candidates also tended to select the higher performing “employees.”

Team Bohnet suggested that people have two distinct and situation-specific modes of thinking, “System 1” and “System 2,” illustrated by University of Toronto’s Keith E. Stanovich and Richard F. West of James Mason University.

Keith Stanovich-Richard West System 1- System 2 ThinkingThese cognitive patterns can lead evaluators to select incorrect decision norms, leading to biased outcomes.

Decision tools like the “evaluative nudge” decision-framing can reduce bias in hiring and promotion decisions, leading to a more equitable workplace opportunity across demographic groups.

-*What other evaluation procedures can reduce unconscious bias in performance appraisal and career advancement selection processes?

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©Kathryn Welds