Tag Archives: Sigal Barsade

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 abusive interpersonal relationships,
  • Continuing failing 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:

  • Enable increased focus on the present moment,
  • Shift attention away from past and future actions,
  • Reduce negative 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.
It does this 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

Why Organizations Care about Employee “Happiness”

“Command-and-control” managers of the past might have scoffed at current business research on happiness.
Under their spans-of-control, employees ought to have been happy to have a job from which they derived an income.
This view has been supplanted by widespread recognition that desirable outcomes like innovative problem solving, flexible decision making, and workplace productivity are associated with employees’ positive mood.

GallupResearch by the Gallup Organization offers further justification in its finding that disgruntled employees disengage and cost the American economy up to $350 billion a year in lost productivity.

Therefore, organizations can increase financial performance by improving operational efficiency in the many processes involving people.

Sigal Barsade

Sigal Barsade

Sigal Barsade of the Wharton School of Business contributed to the investigation of happiness’s impact on organizational productivity.
She found that positive moods prompt “more flexible decision-making, wider search behavior and greater analytic precision,” which enable the organization to take considered risks.

Jennifer Aaker

Jennifer Aaker

On the other coast, Jennifer Aaker, award-winning professor at Stanford Graduate School of Business, links workplace happiness and a sense of meaning.

She asserts that having a meaningful impact on the world is a strong predictor of happiness and that it’s possible to cultivate mindfulness and awareness of meaning in work and personal activities.
This cultivated awareness, she said, influences people’s subjective well-being and may positively affect that of others in a contagion effect.

Jonathan Haidt

Jonathan Haidt

New York University’s Jonathan Haidt, a psychologist in the Stern School of Business, takes a more philosophical view of happiness.
He redefines “wisdom” – other might say “leadership” or “self-management” – as the ability to adapt, shape the environment, and know when to move to new environments.

His moral and ethical framework includes high-level philosophical “virtues” associated with a sense of well-being and shared across cultures:

  • Courage
  • Humanity
  • Justice
  • Temperance
  • Transcendence

The Happiness HypothesisHaidt’s book, The Happiness Hypothesis: Finding Modern Truth in Ancient Wisdom , specified contributors to well-being:

  • Strong marriages
  • Physical touch
  • Meaningful relationships
  • Religious affiliation
  • Autonomy
  • Meaningful engagement in work
  • Contributing to a community through voluntary effort

Engineering organizations analyze issues according to “Is-Is Not.
Using this approach, Jonathan Haidt’s research offered some surprising happiness detractors or “is-nots”:

  • Persistent noise
  • Long commutes
  • Lack of situational and person control
  • Shame
  • Dysfunctional relationships

Matthias Mehl

Matthias Mehl

Matthias Mehl of the University of Arizona offered an additional contributor to happiness: Interpersonal dialog.
He found that volunteers who engaged in a meaningful conversation create shared meaning, strengthened their connections, and reported feeling happy.

Jennifer Michael Hecht

Jennifer Michael Hecht

Jennifer Michael Hecht’s The Happiness Myth, offers a framework for types and levels of happiness:

  • Good day, awareness, savoring, and gratitude for the fortunate conditions of one’s life
  • Good life, engaging in meaningful and challenging tasks that help provide a material quality of life and doing one’s best in any endeavor
  • Peak, choosing experiences that inspire awe and a sense of the eternal, connect to families and communities.

The Happiness MythShe cites familiar recommendations to:

  • Cultivate self-knowledge
  • Develop a clear view of one’s worth
  • Moderate desires
  • Appreciate mortality and time limits
  • Try new things
  • Increase involvement with others and the community.

Organizational policies can contribute to employees’ sense of well-being through establishing:

  • Opportunities for career movement and development
  • Regular acknowledgement and praise for a job well done
  • Focus on well-being as individuals through health and work/life integration programs

The payoffs to organizations include increased productivity, innovation and engagement.

-*How have you seen efforts to increase organizational “happiness” result in improved employee engagement, productivity, or decision-making?

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©Kathryn Welds