1. A Multi-disciplinary Perspective on Decision-making and Creativity:
Using the Diversity of Truth-seeking and Sense-making to Advantage in Organizational Contexts
Wayne Smith, Ph.D.
Department of Management
CSU Northridge
Updated: Sunday, June 30, 2019

2. 4 – Psychology

3. Psychological Traits Personality Attitude Functionalism Behaviorism
Typically, genetic (nature)
Personality
Typically, cultural (nurture)
Attitude
Effective & affective moods/comportment
Functionalism
The reason behind our thoughts/actions
Behaviorism
Typically, outward and explicit motivation

4. Psychological State vs. Status Heuristics Learning
State (e.g., mood)--Internal states reflecting external reality
Status (e.g., institutions)--External reality reflecting internal state
Heuristics
Feedback, cause and effect
Learning
Individual Learning (very tough)
Organizational Learning (very, very tough)

5. Psychological How our brains work in practice Emotions “Irrationality”
Working memory vs. Long-term Memory
Similarities, References, Patterns, Motifs
Emotions
Our decision-making is reduced if our feelings deteriorate, but our decision-making is less rational if we let our feelings dominate
“Irrationality”
The “influence of want” can cloud the “requirement of need”

6. Psychological Judgmental Biases (HBR article)
In addition to using multiple perspectives, here are some other pathologies and strategies to address

7. Psychological Selective Perception Impression Effect
Strive for objectivity
Impression Effect
Play devil’s advocate
Presentation Effect
Design problem well ahead of time
Consider best- and worse-case scenarios

8. Psychological Framing Effect
Strive for neutrality
See problem as others see it
Escalation of Commitment Effect (aka “Sunk Cost”
Share responsibility with others
Revisit why we are committed to this goal
Categorization Effect
Examine assumptions
Use only hard facts, understand randomness

9. Psychological “Weighted” Risks “Valued” Risks
When faced with a situation of loss, we tend to seek risk
When faced with a situation of gain, we tend to avoid risk
“Valued” Risks
We assign more value to the possibility of avoiding loss (or pain) than on the acceptance of a sure loss (or pain).
Examples (individual/org./society)

10. Psychological Attribution Theory
Our successes are largely due to our performance, but our failures are largely due to the performance (or lack of performance) of someone else
this called the “fundamental attribution error”
In negotiation, “our side” is rational, and the “other side” is other-than-rational.
The most honest thing one can say is that even with perfect information, proper analysis, and precise results, we can’t always explain causes (argh!)

11. Debiasing Methods Faulty judges Perfectible individuals
Warn of problem
Describe problem
Provide personalized feedback
Train extensively
Incorrigible individuals
Replace them
Recalibrate their responses
Plan on error

12. Debiasing Methods Faulty tasks Unfair tasks Misunderstood tasks
Raise Stakes
Clarify Instructions/stimuli
Discourage second-guessing
Use better response modes
Ask fewer questions
Misunderstood tasks
Demonstrate alternative goal
Demonstrate semantic disagreement
Demonstrate impossibility of task
Demonstrate overlooked distinctions

13. Debiasing Methods Mismatch between task and judges Restructuring
Make knowledge explicit
Search for discrepant information
Decompose problem
Consider alternative formulations
Offer alternative formulations
Education
Rely on substantive experts
Educate from childhood