When Decision Makers Tend to Think They Know More Than

question 54

Multiple Choice

When decision makers tend to think they know more than they do or hold unrealistically positive views of themselves and their performance, they are exhibiting the ________.

• A) selective perception bias
• B) the anchoring effect
• C) self-serving bias
• D) overconfidence bias

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Definitions:

Halo Errors

Bias in evaluating someone based on a single trait, characteristic, or first impression that influences judgment of all other qualities.

Severity Errors

Biases in evaluation, especially in performance appraisals, where the evaluator tends to rate everyone lower (or harsher) than deserved.

Leniency Errors

A type of bias in performance appraisals where the evaluator tends to rate employees more favorably than their performance deserves.

Recency Errors

A cognitive bias that leads individuals to give greater importance to the most recent information or experiences.