Understanding the decision-making process and common biases that affect it.

Systematic patterns of deviation from norm or rationality in judgment.

The tendency to seek out information that confirms pre-existing beliefs while dismissing contrary evidence.

When our actions and beliefs don't align, we feel discomfort and seek ways to reduce this inconsistency.

People often believe they are better than average (e.g., 93% of drivers rate themselves as better than the median).

Preferring the current state of affairs rather than making an active change.

How information is presented can influence decisions. People tend to avoid losses more than they pursue gains.

Relying on easily recalled information, even if it's not the most relevant.

Demonstrates 'sampling on the dependent variable' where only data supporting a decision was considered, while contradictory evidence was ignored.

Making decisions based on incomplete data that skews understanding.

Sticking with a decision to appear consistent, even if new evidence suggests it's a poor choice.

Anchoring bias happens when people rely too heavily on the first piece of information they encounter (the 'anchor') when making decisions.

Overconfidence leads individuals to overestimate their knowledge, abilities, or predictions.

People often assess the probability of an event by comparing it to an existing prototype or stereotype.

Decision-makers often continue to invest resources into a failing project or decision because of the amount of effort or money already spent.

The way information is presented (framed) can significantly affect decisions.

Once an outcome is known, people tend to believe that they had predicted it all along.

This bias reflects a preference for the current state of affairs or resisting change.

The endowment effect occurs when people assign more value to something they already own compared to something they do not.

We form impressions quickly and they are difficult to change.

Overestimating the role of internal characteristics and underestimating situational factors when judging others' behavior.

Taking credit for successes while blaming external factors for failures.

We rate people who are similar to us more positively.

People attribute positive traits to individuals based on a single positive quality (e.g., attractiveness).

We tend to prefer people or things simply because they are familiar to us.

Stereotypes guide our perception, leading us to evaluate people based on how closely they fit a stereotype.

We remember information presented first (primacy) and most recently (recency), which biases how we judge others.

Our expectations of others can influence their behavior to conform to those expectations.

Confirmation Bias: Tendency to focus on information that confirms pre-existing beliefs.

Check for Self-Interest: Is the recommending team motivated by personal gain?

Selection refers to the process of choosing the most suitable candidate for a specific job from a pool of applicants.

Any instrument used to make a decision about a potential employee.

Consistent test conditions for all applicants.

Consistency of test results over time.

Test measures what it claims to measure.

Test scores relate directly to job skills.

Tests not predictive of job success.

Test results minimize personal bias influence.

Measurable data predicting applicant success.

Includes knowledge, aptitude, personality, and honesty tests.

Conducted post-offer, prior to employment.

Gauge qualifications and personality fit verbally.

Interviews can introduce personal bias.

Consistent job-related questions for all candidates.

Candidates describe handling specific job scenarios.

Focus on past behavior to predict future actions.

Open-ended questions allow candidate control.

Multiple interviewers provide diverse perspectives.

Single interviewer reduces candidate stress.

Review recruitment for efficiency and quality.

Techniques to persuade using cognitive heuristics.

Rules, audience, message, timing, and source.

Start small, then make larger requests.

Agree to smaller request, then increase stakes.

Start with extreme request, follow with moderate.

Lead target to desired conclusion through questions.

Consistency enhances public commitment adherence.

Direct persuasion through reasoning and expectations.

Involve others to find common ground.

Obligation to return favors enhances persuasion.

Public commitments increase follow-through likelihood.

People follow actions of others in uncertainty.

People are persuaded by those they like.

Deference to experts enhances persuasion effectiveness.

Perceived scarcity increases value of items.

Motivation = Expectancy x Instrumentality x Valence.

Driven by internal rewards and personal growth.

Motivated by external rewards like money.

Adding positive stimuli to increase behavior.

Removing negative stimuli to increase behavior.

Introduce/remove stimuli to reduce undesired behavior.

Pain of losses outweighs joy of gains.

Focus on autonomy, relatedness, and competence.

The process of stimulating interest and enthusiasm.

The ability to make personal choices in work.

The sense of connection to others in the workplace.

External elements preventing dissatisfaction, not motivating.

Intrinsic factors driving motivation, like achievement.

Increasing responsibility and accountability for employees.

Rewards that contradict desired organizational behaviors.

Shared beliefs and values within an organization.

Visible elements representing organizational culture.

Invisible beliefs about what is important in culture.

Deeply held beliefs about appropriate behavior.

Shapes performance and motivates employees.

A meaningful declaration aligning with organizational values.

Onboarding processes integrating new hires into culture.

Feeling safe to take risks without fear of negative consequences.

A system of connections providing information and support.

Close connections offering trust and frequent interaction.

Casual connections crucial for novel information access.

Individuals bridging different groups in a network.

Gaps between network groups that brokers can exploit.

Number of direct connections within a network.

How often a person bridges others in a network.

Proximity to others in a network for resource access.

Theory suggesting humans maintain 150 stable relationships.

Offering help to strengthen network ties.

Creating relationships within professional and personal contexts.

Methods like artifacts and narratives reinforcing culture.

Encouraging creativity and risk-taking within organizations.

Leaders shape culture by exemplifying desired values.

Individuals who have many weak ties and broad networks.

Individuals who focus on deepening strong ties.

People's ability to form and maintain strong ties is often influenced by their attachment style, which can be secure, anxious, or avoidant.

Revere's success in spreading news during the Revolutionary War is attributed to his ability to connect diverse groups (information brokerage).

Building trust in your network is critical for accessing valuable, non-public information.

Networks provide access to exclusive information that offers a competitive edge.

Networks expand your ability to solve problems by providing access to a range of skills and expertise.

Individuals with extensive networks hold informal power through their ability to broker information and connect different groups.

People tend to form connections with others who are similar to them, which can limit the diversity and effectiveness of a network.

We often network with people who are physically or organizationally close to us, which can create echo chambers.

Participating in high-stakes, shared activities with diverse people helps build strong, meaningful connections.

Expanding the negotiation 'pie' by trading across issues that matter more to one party and less to the other, leading to a win-win scenario.

Your BATNA is the best course of action you can take if the negotiation fails. A strong BATNA gives you leverage and allows you to walk away from a bad deal confidently.

Identifying the issues that are integrative or compatible is key to expanding the pie.

Finding ways to resolve competitive issues where interests are directly opposed.

Knowing what matters most to the other side and what trade-offs they might be willing to make.

Understand why the other party wants something, rather than just what they are asking for. This helps you find win-win solutions.

Use a scoring system to evaluate different issues in terms of points or dollars to make informed decisions.

Practice how you will respond to different scenarios, tactics, or offers. Be prepared to trade, not just concede.

Research the market rate for someone with your qualifications, skills, and experience before negotiating.

Establish a baseline offer you'd be willing to accept but set a stretch goal that pushes beyond this.

Practice your negotiation strategy and rehearse with a friend or colleague to handle counterarguments with confidence.

Don't rush to accept the first offer. Thank the employer and ask for time to consider.

Avoid making low offers to please the employer or avoid conflict. Stay focused on your goal.

Be ready to answer challenging questions like 'Why should we increase our offer?' or 'Do you have other offers?'

If the salary offer is not flexible, consider negotiating other benefits such as bonuses, stock options, flexible schedules, or professional development opportunities.

This is the lowest or highest point you're willing to accept in the negotiation, based on your BATNA.

Your target is your ideal outcome, which should be ambitious but realistic.

Understanding your counterpart's best alternatives can give you insight into their motivations and limits.

Research as much as possible about the other party's needs, constraints, and preferences.

Choose a strategy based on the situation—whether it's competitive, collaborative, or somewhere in between.

A process where a neutral third party helps disputants resolve a conflict without imposing a solution.

In mediation, the mediator facilitates the negotiation but does not decide the outcome. In arbitration, the arbitrator makes a binding decision.

When disputants cannot find a mutually acceptable agreement on their own.

Step 1: Setting It Up: Choose a neutral site, establish norms, and possibly start with separate meetings to avoid immediate confrontation.

Allow the disputants to vent their frustrations in a controlled way, helping them cool down and think more rationally.

When mediation is unsuccessful, the mediator often gets blamed. This can turn mediation into arbitration if not managed carefully.

Managers should mediate conflicts on their teams, using mediation skills rather than relying on authority.

Separate Meetings: Useful for gathering information and understanding each person's perspective without escalating conflict.

Factual arguments (e.g., who is right or wrong) tend to be counterproductive. Instead, focus on interests—why each party holds their position.

Evaluate whether engaging in the conflict will change anything.

If the conflict has no practical resolution or the issue is no longer relevant, it may be better to let it go.

Remaining calm and deflecting emotional escalation can help defuse a situation.

Individual Communication: One-on-one conversations, where active listening and direct engagement are key.

Active Listening: A critical component of effective communication, involves making eye contact, non-verbal affirmations, and rephrasing to ensure understanding.

Demonstrating through behavior reinforces verbal messages.

A cognitive bias where individuals assume others know what they know.

How group norms and behaviors influence individual actions.

Rapport Building: Through gradual self-disclosure, individuals can build intimacy and trust.

Effective communication often involves vulnerability, where openness fosters trust.

Leaders must tailor their communication style to suit the preferences and needs of their audience.

Being open about company goals, challenges, and opportunities builds trust.

Ensuring clear communication reduces confusion around priorities.

Using questions like 'Tell me more' or 'Explain what you mean' encourages thoughtful responses.

Demonstrating empathy helps leaders connect with their employees.

Non-verbal communication, such as maintaining eye contact and using positive gestures, is crucial for conveying interest and trustworthiness.

Asking for feedback builds trust, but it is important to act on that feedback.

Asking questions improves learning, performance, and rapport-building.

Follow-Up Questions: These are especially powerful as they show active listening and encourage further elaboration.

Casual, conversational tones often encourage more openness and trust.

In group settings, the willingness to share can be influenced by the behavior of others.

Asking more questions naturally improves emotional intelligence and builds rapport.