Management Decision Making Essay
Note: Of course, discussion of hose biases should be Informed by ideas from the course. B. How would you convince others in your organization to use this process, when the validity of the current interview process seems so obvious? Research studies have consistently shown that “Stereotyping” influences our judgment about people and their capabilities. This Is especially true In an interview process where judgments about future performance of a person Is formed during a short span of time.
We are plagued by “confirmation and hindsight biases” in valuating prospective candidates during an interview process. We pay particular emphasis on “first impressions” such as communication skills, presentation and posture, thus, disregarding the fact the candidate might be putting its best performance and might not reflect the true ability of the candidate’s future performance at the firm. Thus, there is a tendency for people to only seek out information that conforms to their preconceived notions, and subsequently ignoring information that goes against them.
For instance, I work for a full-service investment ann., which has a team of investment banking, sales and IT professionals, where the skills set requirements for each of the respective jobs are relatively different. When we interview candidates for a particular
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To elaborate, when we Interview candidates for Investment banking positions, we presume that if the candidate belongs to a certain educational institution, he/she is analytically more qualified that other candidates. In a particular incident, I interviewed a candidate who came from a lesser known educational institution, had an engineering background and wanted a career change into investment banking. The HER department rejected his application based on his educational qualifications and prior experiences, but, I saw the genuine Interest of the candidate to pursue a finance career and a strong desire to learn. Add an exception to the company’s policies relating to the hiring process, and gave an opportunity to this candidate to work on an M&A project on a short-term basis. This gave us an opportunity to test the candidate’s analytical abilities and also Judge his work ethic required for the Investment banking position. This candidate turned out to be one of my top performing analyst and we made him a full time offer to Join the at our firm to be more open minded, look at more “discomforting information” relating to candidates skills sets and genuine interests in a position.
Furthermore, the candidates should be given an opportunity to work on short-term projects and edged by certain criteria required for the particular position before a hiring decision is made. 2) You are concerned that your organization does not take enough risk. Using the principles covered in class, come up with a strategy for inducing more risk-taking. The strategy should not be something like: “increase the incentives for risk taking. ” Instead, it should be inspired by psychology, reflecting some of the reasons why individuals in organizations might not naturally take as much risk as they should.