Bounded Rationality - a Personal Case Study Reflection Essay
they deal with decision making complexity by using only a sub set of available information which leads to biases in a variety of decision making contexts (Tiwana, Wang, Keil, & Ahluwalia, 2007).
It is clear I was affected by the need for self-verification as defined by Robbins and Judge (2011); to prove to myself that I was capable of handling the new role of Project Manager however the project team was also affected by the common biases known as Anchoring and Overconfidence Bias which ultimately influenced the decision making process and errors in the teams decisions. Instead of searching for alternative suppliers we continued only with the initial information provided by the bid team, this is referred to as the Anchoring Bias which is a tendency to fixate on initial information without adjusting for any subsequent information (Robbins and Judge, 2011). Additionally we were affected by Overconfidence bias at the time of making the decision as we overestimated our abilities to manage the design and implementation without having all the available information on the issue at hand. Robbins and Judge (2011) suggested that overconfidence is most likely to surface when individuals work outside their area of expertise; at the time of making the decision the procurement manager was not