Refereed Publications Abstract

HOW ASSUMPTIONS OF CONSENSUS UNDERMINE DECISION MAKING

Because of the rapid globalization of business and proliferation of new technologies, managers and executives must understand and even embrace the concept of change. Stability and tradition are concepts of the past. Despite the simplicity of the concept of change and even the genuineness and dedication of executives’ attempts to manage such efforts, we identify a tacit cognitive barrier to successful change: The Egocentric Fallacy. Although researched by academics, this robust intuitive judgment bias is little known to managers and executives. In this article, we describe the phenomenon and its psychological determinants, and show its relevance to managerial decision making around issues of organization change. We conclude with recommendations for overcoming this bias.

Return to Refereed Publications List