Fundamentals of Management, 11/e

What Common Errors Are Committed in the Decision-Making Process?

When managers make decisions, they use their own particular style, and may use “rules of thumb,” or heuristics, to simplify their decision making.9 Rules of thumb can be useful because they help make sense of complex, uncertain, and ambiguous information. However, even though managers may use rules of thumb, that doesn’t mean those rules are reliable. Why? Because they may lead to errors and biases in processing and evaluating information. Exhibit 4–5 identifies 13 common decision errors and biases that managers make. Let’s look briefly at each.10

Exhibit 4–5

Common Decision-Making Errors and Biases

Figure 4–5 Full Alternative Text

Which of these are YOU guilty of when making ...