The Analytical Mindset: Decision Making Part 2 OS608 November 13, 2006 Fisher

Agenda Biases in decision making The “illusion of objectivity” Obtaining input from afar – pros and cons of using knowledge management systems in decision making Mid-course feedback

Sources of Bias Implicit prejudice Favoring own group Conflict of interest Overclaiming credit

GM’s “Winning with Integrity” Outlines expected behaviors for employees and board members Covers many areas of behavior Fair treatment and respect Property use Accepting gifts from suppliers/vendors Environmental principles Conflict of interest Retrieved from

GM’s process for deciding if employees can accept gifts/entertainment

In-class writing Do you agree with the authors’ contention that a biased decision is unethical? Why or why not?

Counteracting biases “Unpacking” the decision process – consider the whole situation, not just self (removing the ego again!) Experience different environments to counteract stereotypes Eliminate mental shortcuts “your intuition is prone to implicit prejudice” (p. 7)

Groups and Decision Making One goal of including the perspectives of many people in a decision is to minimize biases Relying on personal network can introduce biases (as suggested by Banaji, et al) KM systems are one way to potentially enhance decision making

Knowledge Mgmt Systems How do formal KM systems improve decision making? What additional biases might be introduced with KM systems?

Another KM-type application IBM’s labor resource management system (Professional Marketplace) Database of skills, experience, and location; will include 180,000 professional services employees worldwide Used to select employees to staff projects

Temporary changes in office hours Nov. 13 and 20: Job candidates in town. Office hours cancelled New office hours on Tuesday Nov. 14 from 1-2:30 Nov 16: Office hours cancelled

For Wednesday Moving on to the Collaborative Mindset Review 'Managing Relationships' section of Gosling and Mintzberg Starting with issues related to the employee’s relationship with the organization. Read: Rousseau (2004). Psychological contracts in the workplace: Understanding the ties that motivate. Lewis (2005). Fostering a Loyal Workforce at Trader Joe's.

Mid-course feedback What do you like about the class so far? What should we keep doing? What should we change? Feedback should be anonymous.