Introduction
As humans, our decision-making processes are not always as rational as we believe. Various cognitive biases can significantly influence our judgments, leading us astray from objective reasoning. In this article, we’ll explore what unconscious bias is and the underlying cognitive psychology, then we’ll explore the ten most common cognitive biases that impact our decision-making. We’ll delve into the psychological mechanisms behind each bias, understand why they occur, and provide real-life examples to illustrate their effects. By gaining awareness of these biases, we can strive to make more informed and impartial choices in our personal and professional lives.
What is Unconscious bias?
Unconscious biases, also known as implicit biases, are deeply ingrained attitudes and stereotypes that shape our perceptions and decisions. These biases are a product of how our brains process information and categorise experiences.
Evolutionary Roots
Unconscious biases are rooted in the evolutionary need for our brains to quickly process information and make decisions to ensure our survival. Our ancestors had to make rapid judgments about potential threats and opportunities, which led to the development of cognitive shortcuts. These shortcuts, or heuristics, enable our brains to quickly assess situations and people based on limited information, often leading to unconscious biases formed around stereotypes and generalisations.
Implicit Association
Implicit associations are connections formed between concepts or attributes in our minds without conscious effort. These associations can be influenced by cultural norms, media representations, and personal experiences. For example, if we repeatedly encounter certain portrayals of a particular group in the media, our brains may unconsciously associate those stereotypes with individuals from that group.
Confirmation Bias
Confirmation bias is a cognitive tendency where we seek information that confirms our existing beliefs and filter out contradictory evidence. Unconscious biases can intensify confirmation bias, as we tend to interpret information in a way that aligns with our preconceived notions. This reinforces the biases we hold and can lead to a closed-minded approach to new perspectives and information.
In-Group Favoritism
Our brains have a natural inclination towards in-group favoritism, which means we tend to have a more positive perception of individuals belonging to our own social or cultural groups. This inclination can inadvertently lead to the development of negative biases towards out-groups, perpetuating stereotypes and discrimination.
Neuroplasticity and Change
The good news is that our brains are highly adaptable and capable of change. Neuroplasticity refers to the brain’s ability to reorganise itself by forming new neural connections throughout life. By actively challenging and addressing our unconscious biases, we can create new pathways in our brains that promote more unbiased and inclusive thinking.
Unconscious biases are not a flaw but rather a result of how our brains naturally process information. Recognising the evolutionary roots of these biases can help us better understand their influence on our behavior. By acknowledging and actively working to address our unconscious biases, we can foster a more inclusive and equitable society.
Top Ten Cognitive Biases
Confirmation Bias
Confirmation bias occurs when individuals seek or interpret information in a way that supports their existing beliefs or hypotheses, while disregarding evidence that contradicts them. This bias stems from our desire to protect our self-image and maintain consistency in our views. For instance, a person who firmly believes in a specific political ideology may only consume news sources that align with their beliefs, reinforcing their convictions and dismissing opposing viewpoints.
Confirmation bias can influence performance evaluations in the workplace. Managers might evaluate employees based on their preconceived opinions or expectations rather than an objective assessment of their performance. If a manager has a positive impression of an employee, they may tend to interpret their actions and achievements in a more favorable light, leading to a higher performance rating. Conversely, if the manager has a negative impression, they may subconsciously seek evidence to validate their negative assessment, resulting in a lower rating.
Availability Heuristic
The availability heuristic is a mental shortcut that relies on immediate examples that come to mind when making decisions or judgments. People often overestimate the likelihood of events or outcomes based on their ease of recall. For instance, individuals may fear flying due to the vivid memories of airplane accidents reported in the media, even though statistically, flying is safer than driving.
Another example is tendency to believe your community is more dangerous than it really is. Media coverage tends to focus on crime and violence. The availability of crime-related news stories can influence people’s judgments, leading them to believe that crime rates are higher than official statistics indicate. As a result, individuals may believe that their neighborhood or city is more dangerous than it actually is.
Anchoring Bias
Anchoring bias occurs when individuals rely too heavily on initial information (the “anchor”) when making decisions, even if that information is irrelevant or unreliable. For example, in negotiations, the first offer made often sets the tone for subsequent offers, leading to a biased final agreement.
Anchoring bias can impact some groups of people more than others due to various factors related to social, cultural, and economic contexts. For example, members of minority groups may encounter anchoring bias in salary negotiations or job offers. If employers anchor their salary offers based on an applicant’s previous lower earnings, individuals from minority backgrounds may face challenges in breaking free from wage disparities and achieving fair compensation.
Overconfidence Bias
Overconfidence bias leads individuals to overestimate their abilities, knowledge, and predictions, resulting in unwarranted certainty. This bias can be observed in various scenarios, such as a novice investor believing they can consistently outperform the stock market or a student feeling overly confident about acing an exam without proper preparation.
Within a work context, overconfidence in skills can lead to increased risk taking behaviour without the matching capability to safely handle the situation. PickleWork helps Managers address this through the Skills Passport. Within the Skills Passport, employees continually self evaluate their skills against the role’s defined skill levels and provide their evidence of what they’re doing to demonstrate that standard. Managers then review the employee’s assessment and evidence against the defined role expectations. Where there’s discrepancy – either higher or lower, managers can provide concrete feedback to the employee and reset expectations of what’s expected.
Sunk Cost Fallacy
The sunk cost fallacy occurs when people continue investing in a decision or project based on the resources already committed, rather than considering future benefits. For example, an individual might stay in a failing business venture because they have already invested substantial time and money, despite signs of impending failure.
Halo Effect
The halo effect is a cognitive bias where a person’s positive traits or abilities in one area influence the perception of their overall character or competence. This bias often arises in social contexts, such as when attractive individuals are perceived as more trustworthy or capable than their less attractive counterparts.
Bandwagon Effect
The bandwagon effect refers to the tendency of people to adopt certain beliefs or behaviors simply because others are doing the same. This bias stems from the desire to conform and avoid standing out. In politics, for instance, voters may support a candidate who is leading in the polls, regardless of their policies or qualifications.
The bandwagon effect tends to reinforce prevailing cultural and social norms. When a majority of people adopt certain beliefs or behaviors, those who belong to minority groups or hold different perspectives may feel pressured to conform. This can lead to the suppression of unique cultural practices or marginalised viewpoints, restricting the diversity of ideas and experiences.
Loss Aversion
Loss aversion is the tendency to prefer avoiding losses over acquiring gains, even when the potential benefits outweigh the potential losses.
Loss aversion is deeply rooted in the way our brain works:
- The amygdala is a part of the brain responsible for processing emotions, particularly fear and negative emotions. When we face potential losses, the amygdala is activated, triggering a strong emotional response. This emotional activation leads us to be more sensitive and attentive to potential threats, making us cautious and risk-averse.
- Neurotransmitters such as dopamine and serotonin manage our brain’s reward and pleasure system. When we experience gains or rewards, dopamine is released, creating feelings of pleasure and satisfaction. However, the impact of losses trigger the release of stress hormones like cortisol, making the negative emotional impact more profound than the positive emotional impact of gains.
All of this means people are more likely to take risks to avoid losses than to achieve equivalent gains. For instance, investors may hold onto losing stocks in the hope of recovering their losses, rather than selling to minimise further losses.
At work, employees and managers may be hesitant to take on high-risk projects, even if they offer significant rewards, due to the fear of potential failure and negative consequences. This aversion to loss may lead to missed opportunities for growth and development.
Ambiguity Effect
The ambiguity effect is a cognitive bias that describes how people tend to avoid options or choices that involve uncertainty or lack of information when making decisions. In other words, individuals have a preference for known risks over unknown risks, even if the unknown risks might have a better expected outcome. This bias reflects our discomfort with ambiguity and our desire for clear, certain information when making choices.
Daniel Ellsberg conducted a classic experiment to illustrate the ambiguity effect. In the study, participants were presented with two urns, each containing 100 balls. In the first urn, they knew the distribution of red and black balls (e.g., 50 red, 50 black), while in the second urn, the distribution was unknown. Participants were asked to bet on the color of a ball drawn from one of the urns. The results showed that people tended to bet more on the known-uncertainty urn, even when the odds were in their favor, illustrating the ambiguity aversion.
Choice Paradox
The choice paradox occurs when people become overwhelmed by having too many options, leading to decision-making difficulties and dissatisfaction with the chosen outcome. This bias is prevalent in consumer behavior, where individuals may struggle to choose a product or service among numerous alternatives, resulting in decision fatigue and buyer’s remorse.
Set Some Actions
Addressing biases takes practice, so set some small actions you can start today and over the course of the week continue your practice.
Some ideas:
- Pick a bias and learn more about how and when the bias impacts decision-making
- Review a decision you’re about to make. Discuss with your team, or a coach/mentor what biases might affect the decision and then plan how can you mitigate them.
- Reflect on your past big decisions. Can you identify how biases influenced your decision?
Learn More
- For more free resources and downloadable infographics on cognitive biases visit School of Thought
- For definitions and key words check our Glossary
