Anchoring Rational Decision Making

In order to solve a certain problem, accurate decisions have to be taken. However, accurate decisions can only be made when the information obtained is appropriate and sufficient which otherwise it can mislead decision makers. For example, as mention in the issue section, in the beginning, participants were only provided with background information and personal objectives of the role. Hence, this causes the whole team to be attached to the personal objectives as it is the initial information received and will lack to adjust to new information (group challenges) that emerge during the first simulation (Furnham & Hua 2010). This is the influence of anchoring effect. Anchoring effect is a type of bias that causes a distortion when in making decisions by focusing on the first presented …show more content…
Thus, in this case, the team require a leader with positive subjective thought. This can be achieved by redefining the goals and avoid taking high-risk choices (Brand, Pawlikowski, Schiebener & Wegmann 2012). Hence, anchoring effect can interfere decisions in the process by attaching the subject to the initial idea presented.

A problem can be solved through adopting rational decision-making process that guides decision makers to analyze and review generated choices. Thus, the second attempt has an increase in its performance in group challenges from implementing the process in the pre-simulation discussion. The first step of the process is to define the issues. Issues can be identified through understanding the context of the issues and past knowledge (Kingston & Mustafa 2014). For example, during the discussion on the second simulation, the team list down the challenges that emerge from the previous attempt. The next step is to establish decision criteria, which refers to identifying factors that are relevant to the problem (Kingston & Mustafa 2014). In this