Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India

Research Article

The Impact Of Cognitive Biases On Organizational Effectiveness

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  • @INPROCEEDINGS{10.4108/eai.18-12-2018.2283809,
        author={V.  Ramalakshmi and P. M. Haritha and Akif K. Hamim and V. Hari Krishnan},
        title={The Impact Of Cognitive Biases On Organizational Effectiveness},
        proceedings={Proceedings of the 9th Annual International Conference on 4C’s-Communication, Commerce, Connectivity, Culture, SIMSARC 2018, 17-19 December 2018, Pune, MH, India},
        publisher={EAI},
        proceedings_a={SIMSARC},
        year={2019},
        month={9},
        keywords={cognitive biases jumping to conclusions belief inflexibility external attribution attention for threat decision making organizational effectiveness},
        doi={10.4108/eai.18-12-2018.2283809}
    }
    
  • V. Ramalakshmi
    P. M. Haritha
    Akif K. Hamim
    V. Hari Krishnan
    Year: 2019
    The Impact Of Cognitive Biases On Organizational Effectiveness
    SIMSARC
    EAI
    DOI: 10.4108/eai.18-12-2018.2283809
V. Ramalakshmi1,*, P. M. Haritha1, Akif K. Hamim1, V. Hari Krishnan1
  • 1: Krupanidhi Group of Institutions, Bangalore
*Contact email: rama.krupanidhi@gmail.com

Abstract

In the present competitive market situation, organizational effectiveness driven by effective decision making is a must. But biases hamper the final decision at every level of decision making by the managers. In view of the above scenario, the present study tries to investigate the associations existing between cognitive biases, effective decision-making process and organizational effectiveness. These associations are expected to reflect the problem zones for which the study will attempt to provide statistically relevant resolutions. A questionnaire survey was performed for data collection from manufacturing and service industries in Kerala. The responses were analysed with SPSS and AMOS tools along with a RIDIT approach for prioritization of the dimensions. The path model, which has been developed using AMOS (ver 20) to analyse the relationships, shows that the relationship of all the three cognitive biases on effective decision making have a significant influence. Further the study also concludes with a priority ranking of the cognitive biases’ dimensions, which is recommended to be focussed by the decision makers for effective decision making facilitating organizational effectiveness.