Intuitive Cognitive Style and Biases in Decision Making

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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background Of The Study1

Costs of errors in decision making4

Relevance5

Research problem5

Statement of objective5

Theoretical Framework6

Models of cognitive style7

Relationship between personality and cognitive style8

Biases and Historical Background9

Hypothesis Development11

REFERENCES14

CHAPTER 1: INTRODUCTION

Background Of The Study

Marta, Neal, (2005), in this world of dynamic changes and globalization, the companies are looking for the appraoches for executing the new approaches, these management approaches are helpful in the decision making of the organizations. Under the increasing organizational pressures and ambiguity, the implementation of the linear rational models are not at all giving the satisfactory results (Marta, Neal, 2005).

According to Marta, Neal, (2005), in the perspective of managerial decision making, the organizations face 50% success by executing the rational decision making strategies. there are many of the requisities for the rationality which is bounded, these requirements are not sufficient enough for satisfying.

Marta, Neal, (2005), in order to have the success approaches in the organizations, the managers must have to execute the holistic approaches, these approaches must be implemented for the non programmed decisions. to execute the new decision making methods, the organziations must have to incur the high cost for decision makings. this leads to an increase in the time pressure and insufficient information as well as the fast paced change. some of the other threats are technological as well as the economic forces that hinders since 1980s. these factors that effect the execution of decision making in the organizations have led the researchers to be accountable for the rational decision effectiveness(Marta, Neal, 2005).

Despite some of the theroretical work, the decision making can be defined as the topic which needs long lasting conceptual concern. There are less consideration taken on the individual impact and differnces between approaches to deicison making and decision making styles.

According to Christopher (1996), among the management researchers and practitioners, there has been an increasing cognitive style interest during the past decade. In the organizational settings the main problem is the validity shortages and shortages for measuring reliability. According to Christopher (1996), the development and validation of the Cognitive Style Index, a new self-report questionnaire specifically designed to meet this need. Cognitive style has been defined as consistent individual differences in preferred ways of organizing and processing information and experience (Christopher, 1996).

According to Richard, Stephen, (1997), the behaviour of the organization is crystal clear, the cognitive styles more and more suitable for conducting particular managerial activities, then normative recommendations concerning the selection and placement of individuals for these activities may be warranted. In addition, if it is found that cognitive styles are subject to modification, then the development of training programs in the industrial setting, or modifications of current business school curricula in the academic setting, may be critical.

According to Eugene, (2008) individual employs is influenced by the task and by the decision-making mode that can be arranged on a continuum reflecting the extent to which intuitive or rational processes are likely to be recruited ...