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Article
Publication date: 10 October 2016

Rosalie P. Chamberlain

This paper aims to build awareness of the impact of unconscious bias when interviewing and hiring new employees so that employers can hire diverse talent with multiple aspects of…

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Abstract

Purpose

This paper aims to build awareness of the impact of unconscious bias when interviewing and hiring new employees so that employers can hire diverse talent with multiple aspects of diversity to build a workforce that excels toward excellence.

Design/methodology/approach

The five areas discussed in the paper delve into understanding bias by creating a broader sense of understanding to support inclusion for difference by recognizing subtle beliefs and behaviors that exclude potential candidates.

Findings

Specific strategies include examining the subtle biases and beliefs that block the ability to see candidates’ potential; identifying thoughts, interpretations and beliefs that create misconceptions about people; exploring verbal and non-verbal communications that send implicit cues borne from or reflecting bias; recognizing the danger of comparisons using biased criteria; and establishing a checklist that helps the interviewers recognize bias in their thoughts and assumptions.

Practical implications

The marketplace is competitive, and the ability to hire the best candidates is impacted by what the organization has to offer. If biases are not addressed, the organization can miss out on those candidates by not seeing the value added by hiring them or because the message being sent by those in recruitment and hiring is unwelcoming and/or off-putting.

Social implications

Addressing bias has been brought to the forefront in the news because of the past few years of incidents dealing with diversity and inclusion, especially exclusion. Organizations need to be aware because of potential Equal Employment Opportunity Commission (EEOC) implications; focusing on the inclusiveness of the culture is the smart and right thing to do.

Originality/value

The information and suggestions in the paper are original and taken from the author’s work as a diversity and inclusion consultant and leadership coach. These tips have been utilized with success at organizations and helped improve the inclusivity of the organizations.

Open Access
Article
Publication date: 9 September 2024

Michael Wayne Davidson, John Parnell and Shaun Wesley Davenport

The purpose of this study is to address a critical gap in enterprise resource planning (ERP) implementation process for small and medium-sized enterprises (SMEs) by acknowledging…

Abstract

Purpose

The purpose of this study is to address a critical gap in enterprise resource planning (ERP) implementation process for small and medium-sized enterprises (SMEs) by acknowledging and countering cognitive biases through a cognitive bias awareness matrix model. Cognitive biases such as temporal discounting and optimism bias often skew decision-making, leading SMEs to prioritize short-term benefits over long-term sustainability or underestimate the challenges involved in ERP implementation. These biases can result in costly missteps, underutilizing ERP systems and project failure. This study enhances decision-making processes in ERP adoption by introducing a matrix that allows SMEs to self-assess their level of awareness and proactivity when addressing cognitive biases in decision-making.

Design/methodology/approach

The design and methodology of this research involves a structured approach using the problem-intervention-comparison-outcome-context (PICOC) framework to systematically explore the influence of cognitive biases on ERP decision-making in SMEs. The study integrates a comprehensive literature review, empirical data analysis and case studies to develop the Cognitive Bias Awareness Matrix. This matrix enables SMEs to self-assess their susceptibility to biases like temporal discounting and optimism bias, promoting proactive strategies for more informed ERP decision-making. The approach is designed to enhance SMEs’ awareness and management of cognitive biases, aiming to improve ERP implementation success rates and operational efficiency.

Findings

The findings underscore the profound impact of cognitive biases and information asymmetry on ERP system selection and implementation in SMEs. Temporal discounting often leads decision-makers to favor immediate cost-saving solutions, potentially resulting in higher long-term expenses due to the lack of scalability. Optimism bias tends to cause underestimating risks and overestimating benefits, leading to insufficient planning and resource allocation. Furthermore, information asymmetry between ERP vendors and SME decision-makers exacerbates these biases, steering choices toward options that may not fully align with the SME’s long-term interests.

Research limitations/implications

The study’s primary limitation is its concentrated focus on temporal discounting and optimism bias, potentially overlooking other cognitive biases that could impact ERP decision-making in SMEs. The PICOC framework, while structuring the research effectively, may restrict the exploration of broader organizational and technological factors influencing ERP success. Future research should expand the range of cognitive biases and explore additional variables within the ERP implementation process. Incorporating a broader array of behavioral economic principles and conducting longitudinal studies could provide a more comprehensive understanding of the challenges and dynamics in ERP adoption and utilization in SMEs.

Practical implications

The practical implications of this study are significant for SMEs implementing ERP systems. By adopting the Cognitive Bias Awareness Matrix, SMEs can identify and mitigate cognitive biases like temporal discounting and optimism bias, leading to more rational and effective decision-making. This tool enables SMEs to shift focus from short-term gains to long-term strategic benefits, improving ERP system selection, implementation and utilization. Regular use of the matrix can help prevent costly implementation errors and enhance operational efficiency. Additionally, training programs designed around the matrix can equip SME personnel with the skills to recognize and address biases, fostering a culture of informed decision-making.

Social implications

The study underscores significant social implications by enhancing decision-making within SMEs through cognitive bias awareness. By mitigating biases like temporal discounting and optimism bias, SMEs can make more socially responsible decisions, aligning their business practices with long-term sustainability and ethical standards. This shift improves operational outcomes and promotes a culture of accountability and transparency. The widespread adoption of the Cognitive Bias Awareness Matrix can lead to a more ethical business environment, where decisions are made with a deeper understanding of their long-term impacts on employees, customers and the broader community, fostering trust and sustainability in the business ecosystem.

Originality/value

This research introduces the original concept of the Cognitive Bias Awareness Matrix, a novel tool designed specifically for SMEs to evaluate and mitigate cognitive biases in ERP decision-making. This matrix fills a critical gap in the existing literature by providing a structured, actionable framework that effectively empowers SMEs to recognize and address biases such as temporal discounting and optimism bias. Its practical application promises to enhance decision-making processes and increase the success rates of ERP implementations. This contribution is valuable to behavioral economics and information systems, offering a unique approach to integrating cognitive insights into business technology strategies.

Details

Journal of Ethics in Entrepreneurship and Technology, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2633-7436

Keywords

Article
Publication date: 16 April 2020

Grant Beck, Maia Farkas, Patrick Wheeler and Vairam Arunachalam

This study extends prior accounting research on decision aids (DAs) relating to face validity. Specifically, this study aims to examine the effects of face validity through the…

Abstract

Purpose

This study extends prior accounting research on decision aids (DAs) relating to face validity. Specifically, this study aims to examine the effects of face validity through the presence of two levels of bias in DA output. The presence of bias in a DA will not affect how statistically informative an aid is but will decrease the face validity. The findings suggest that non-expert DA users recognize the bias in the DA’s suggestions as evidenced by users’ low agreement with the aid; however, they do not adjust for the bias in their performance, suggesting that non-expert users do not learn from the DA.

Design/methodology/approach

This repeated-measures experimental design allows us to examine performance effects over time in response to different levels of bias in the DA output. The participants in the study are provided with outcome feedback to examine learning effects.

Findings

The findings suggest that non-expert DA users recognize the bias in the DA’s suggestions as evidenced by users’ low agreement with the aid; however, they do not adjust for the bias in their performance, suggesting that non-expert users do not learn from the DA. Although users of an unbiased DA strongly agree with the DA’s output, individual performance deteriorates over time. Initially, the users of an unbiased DA perform better than those who use a biased DA; however, over time, the performance of users of an unbiased aid deteriorates and the performance of users of the biased aid does not improve.

Practical implications

Companies developing DAs may need to consider the effects of using a DA under circumstances different from those under which the aid was developed and that may lead to the biased DA output. This study has implications for firms that design, develop and use DAs.

Originality/value

This study considers a yet unexamined face validity issue – observable bias in DA output. This study examines deterministic DAs designed to assist the decision-maker through their ability to combine multiple cues in a systematic and consistent manner. This study has implications for firms that design, develop and use DAs. Firms need to consider the effects of using a DA under circumstances different from those under which the aid is developed, thereby, potentially leading to biased DA output. Each additional variable added to the DA will be associated with an incremental cost in a DA’s development, use and modification. The results of this study provide insights contributing to the information available for cost–benefit analyses conducted when developing a DA or when considering the modification of existing aid. Failure to change a DA because of face validity issues alone may result in a decline in user performance. Thus, the cost of modifying a DA must be weighed against the benefits resulting from improved performance. This study contributes insights into how users’ responses to DA bias could affect the assessments of the benefits of including an omitted variable in a DA.

Details

Journal of Accounting & Organizational Change, vol. 16 no. 2
Type: Research Article
ISSN: 1832-5912

Keywords

Book part
Publication date: 10 November 2023

Meltem Yavuz Sercekman

Managing differences is a difficult undertaking, especially considering the difficulties arising from the unconscious functions of our brains. Organisations should strive to…

Abstract

Managing differences is a difficult undertaking, especially considering the difficulties arising from the unconscious functions of our brains. Organisations should strive to counteract the potentially harmful effects of unconscious bias by implementing policies that support bias-aware management and decision-making. Although it is obvious that bias cannot be completely eliminated, there is enough data, as discussed in this work, to demonstrate that unconscious bias and stereotypes can be addressed and decreased with mindfulness-based interventions (MBIs) to some extent. Mindfulness involves the process of bringing non-judgemental awareness to experience by striving for full attention in the present moment. In this context, including mindfulness practises into training programmes for equality, diversity, and inclusion may serve as an accelerator for recognising hidden biases, reducing stereotypes, eliminating discrimination, and encouraging cognitive changes. This chapter explains the ways in which MBIs can be used to promote cognitive changes and comprehend the automatic and unconscious nature of emotions and thoughts in order to remove barriers between all differences in the workplace.

Details

Contemporary Approaches in Equality, Diversity and Inclusion: Strategic and Technological Perspectives
Type: Book
ISBN: 978-1-80455-089-2

Keywords

Article
Publication date: 30 March 2020

Kim Stephens and Richard L. Baskerville

Physical social cues can influence the buyer and seller in business-to-business (B2B) marketing. The current behavioural model does not account for the role of implicit bias. The…

Abstract

Purpose

Physical social cues can influence the buyer and seller in business-to-business (B2B) marketing. The current behavioural model does not account for the role of implicit bias. The purpose of this paper is to present that relationship and introduce a process model to weaken implicit bias through training with the employment of transformational conversation.

Design/methodology/approach

With social cues as the predecessor to inferences, there is the potential for implicit bias to derail relationship building in a B2B context. The author’s qualitative field study offers guidance for businesses to make informed decisions about implicit bias training.

Findings

The study findings show that an interactive workshop following a process model with the addition of transformational conversation can weaken implicit bias.

Research limitations/implications

The research was conducted with a small cohort of information technology professionals. More research should be done specifically with sellers and buyers in various industries over a longer period of time with periodic follow-up on sales performance and relationship building.

Practical implications

Minority groups had a combined buying power of $3.9tn in 2018. For sellers to succeed, they have to be able to modulate the implicit biases that interfere with good sales relationships.

Originality/value

This paper introduces implicit bias as a moderator into the conceptual framework of the behavioural response to social cues in the B2B context and offers a model of implicit bias training using a process model with transformational conversation.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 21 May 2020

Jennifer Capler

This article details a qualitative descriptive case study of affective factors of effective decision-making of one local government organization in the United States of America…

Abstract

Purpose

This article details a qualitative descriptive case study of affective factors of effective decision-making of one local government organization in the United States of America. The specific problem was that many elected American local government representatives lack effective decision-making strategies. This research focus indicated a lack of qualitative research on the real-world experience of factors that were taken into consideration during decision-making within American local government organizations.

Design/methodology/approach

Using a local government organization in southwest Illinois, elected representatives were interviewed and observed. The interviews and observations surfaced how the representatives made decisions. Data were analyzed using manual coding and theming to determine themes and patterns.

Findings

The results produced six themes about factors, including emotional intelligence, which impacted decision-making. They are: (1) remembering the past, (2) communication and respect, (3) spurring economic growth and development, (4) fairness, (5) recognizing and removing emotions and bias and (6) accountability.

Research limitations/implications

Being a single case study, this research is limited in generalization. The research was limited to the identification of current, real-world experience of elected local government representatives.

Practical implications

The findings of this research can be used to create more effective decision-making practices for local government organizations of similar size.

Originality/value

This is the first study to review, in-depth, the decision-making and emotional intelligence factors of local government organizations in the United States of America. The conceptual background, discussion, implications to local government organizations, limitations and recommendations for future studies are discussed.

Details

International Journal of Public Leadership, vol. 16 no. 3
Type: Research Article
ISSN: 2056-4929

Keywords

Article
Publication date: 6 January 2023

Elise Ferer

This paper describes the process of developing training for student employees at a reference desk in which students assist peers and others in the community with research help.

Abstract

Purpose

This paper describes the process of developing training for student employees at a reference desk in which students assist peers and others in the community with research help.

Design/methodology/approach

This case study details the process as well as the challenges in developing training that is helpful for student employees in performing day-to-day tasks at a reference desk and incorporates diversity, equity, inclusion and accessibility (DEIA) and high-impact practices (HIPs).

Findings

Training for student employees that prepares them for library work and incorporates DEIA and HIPs can be developed. These ideas can be incorporated into training for all library employees, not just students.

Practical implications

This article aims to assist others in developing training for front-line student employees that incorporates DEIA and recognizes the importance of HIPs.

Originality/value

DEIA and HIPs are considered throughout the development and implementation of training for student employees. Librarians have been training student employees to assist their peers with research for many years. This approach goes beyond the training that is needed to do a job and takes DEIA and student development through HIPs into account.

Details

Reference Services Review, vol. 51 no. 2
Type: Research Article
ISSN: 0090-7324

Keywords

Abstract

Details

Dismantling White Supremacy in Counseling
Type: Book
ISBN: 978-1-83797-493-1

Article
Publication date: 1 January 2006

Philip A. Wickham

To make strategists aware of decision biases and their potential impact on effective strategic decision‐making.

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Abstract

Purpose

To make strategists aware of decision biases and their potential impact on effective strategic decision‐making.

Design/methodology/approach

A review of five critical biases, their sources and impact. The article includes a self‐test. Findings – Suggestions on how the strategist can address biases in self and others as part of strategic leadership.

Research limitations/implications

Conceptual review and self‐test.

Practical implications

Simple, easy to implement guidance on managing biases in self and others.

Originality/value

Raising strategists’ awareness of biases and their potential impact. Self‐test on decision biases. A route to the literature on the issues.

Details

Handbook of Business Strategy, vol. 7 no. 1
Type: Research Article
ISSN: 1077-5730

Keywords

Article
Publication date: 2 January 2024

Nazreen Tabassum Chowdhury, Nurul Shahnaz Mahdzan and Mahfuzur Rahman

This study aims to explore the underlying issues of behavioural biases in relation to stock market participation and the challenges of individual investors in Bangladesh. The…

Abstract

Purpose

This study aims to explore the underlying issues of behavioural biases in relation to stock market participation and the challenges of individual investors in Bangladesh. The study identifies behavioural biases affecting individuals’ stock market participation, their circumvention strategies and the importance of financial knowledge in encouraging the participation of individuals in the stock market.

Design/methodology/approach

Semi-structured interviews were used in this study to gather information from industry researchers, individual investors, brokers and institutional advisors. Twenty-two experts were contacted, and 13 agreed to participate in the interviews. The study then uses the thematic analysis method to report its findings.

Findings

This research shows that investors’ behavioural biases (such as loss aversion, herding, trust, gambler’s fallacy and risk tolerance) are among Bangladesh’s primary drivers of stock market participation. Circumvention strategies (such as poor corporate governance and agency costs) also play a part in individuals’ participation. These influences are in addition to the obvious factors of investment risks, poor infrastructure, poor regulation enforcement and the need for more sufficient investment products.

Research limitations/implications

This study conducted 13 interviews with expert subjects, which is a small sample size. However, the findings achieved saturation and cannot be ignored. Future research should use quantitative or experimental methods with a large sample size to validate the current findings.

Originality/value

This study is pioneering in the Bangladesh stock market, exploring the behavioural biases of investors’ participation in the market. This paper provides valuable insights into investor participation by discovering the underlying behavioural biases that have been continually ignored; these insights may also be relevant in frontier markets in Asian countries.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

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