The Role of Cognitive Bias in Principal Decision Making: A Narrative Analysis of the Literature
DOI:
https://doi.org/10.59175/pijed.v3i2.310Keywords:
Cognitive Biases, Decision-Making, Principal Leadership, Organizational Performance, Strategic ManagementAbstract
This study aims to critically examine the role of cognitive biases in principal decision-making processes by synthesizing and analysing existing literature. It seeks to identify key cognitive biases affecting principal decisions, their impact on organizational outcomes, and potential mitigation strategies. A comprehensive narrative analysis of the literature was conducted. Relevant peer-reviewed articles, books, and book chapters published between 1970 and 2023 were systematically identified and reviewed using major academic databases such as Web of Science, JSTOR, and Google Scholar. The analysis revealed that cognitive biases, particularly confirmation bias, overconfidence, anchoring, and availability bias, significantly influence principal decision-making. These biases can lead to suboptimal decisions, affecting strategic planning, risk assessment, and overall organizational performance. The study also identified several debiasing techniques, including awareness training and structured decision-making frameworks, which show promise in mitigating the impact of cognitive biases. This study provides a comprehensive and up-to-date synthesis of research on cognitive biases in principal decision-making, offering a holistic view of the field’s current state. It uniquely combines insights from cognitive psychology, behavioural economics, and management science to provide a multidisciplinary perspective on the topic. The study contributes to both theory and practice by offering a structured understanding of how cognitive biases influence principal decision-making. It provides valuable insights for principals and organizations to improve their decision-making processes and highlights areas for future research in this critical field. The findings can inform the development of more effective principal training programs and decision support systems.
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