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5.1 Introduction

As we noted earlier, both the rational-economic and psychological perspectives on decision making tend to ignore the social context in which we live and work. We turn now to consider this social context.


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4.6 Post-decision evaluation

For most normally functioning people, maintaining self-esteem is an important internal goal. This can cause us to filter out or discount information that might show us in an unfavourable light. This is what lies behind the fundamental attribution bias. This is the tendency to attribute good outcomes to our own actions and bad outcomes to factors outside our control. While such defences against loss of self-esteem can be helpful to the extent that they help us persist in the face of adv
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4.5.2 Anchoring adjustment

Many decisions need revisiting and updating as new information comes available. However, most of us make insufficient anchoring adjustment: this is the tendency to fail to update one's targets as the environment changes (Rutledge, 1993). Once a manager has made an initial decision or judgement then this provides a mental anchor which acts as a source of resistance to reaching a significantly different conclusion as new information becomes available. It is what happens when one has made
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4.5.1 Filtering

Which of these senses do you usually tune out? From birth we start learning to filter information out and to prioritise, label and classify the phenomena we observe. This is a vital process. Without it we literally could not function in our day-to-day lives. In our work lives, if we did not filter information and discard options we would suffer from analysis paralysis: the inability to make any decision in the face of the complexity and the ambiguity of the real world.

However, t
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1.1 They think it's all over

They think it's all over … it is now!

(Kenneth Wolstenholme, 1966)

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