Episode 052 - Are we making better workplace decisions? Understanding the Science Behind Our Choices
Hello everyone, I'm Doctor Austin Tay. Welcome to episode 52 of PsychChat , a podcast where we share evidence based insights on navigating the complex world of work. Hello to all our new listeners. We are thrilled to have you join us. Don't forget to hit that subscribe button so you can explore our earlier episodes and stay updated on all the exciting new releases.
Dr Austin Tay:And a huge shout out to our loyal subscribers. Thank you for your incredible support. Your reviews empower us to craft even more enriching content just for you. Today we are exploring something that affects everyone at work: how we make decisions. Drawing on research in cognitive science and organizational psychology will uncover why even well planned decisions sometimes fail, and more importantly, what we can do about it.
Dr Austin Tay:Let me start with a situation I'm sure many of you have experienced. Picture this, you're facing an important deadline for a major project. You have spent weeks meticulously planning every detail, analyzing all the data, creating detailed spreadsheets, and holding multiple meetings with stakeholders. You feel confident you have considered every possible anger. But when it comes to the execution, things start falling apart unexpectedly.
Dr Austin Tay:Team members interpret instructions differently, unexpected challenges arise, and what seemed perfectly logical on paper becomes messy. Does this sound familiar? If you're nodding your head right now, you're not alone. We are experiencing what Herbert Simon nineteen fifty five first identified as bounded rationality, and understanding it could transform how you approach workplace decisions. So why we don't always make the perfect decision?
Dr Austin Tay:You know that feeling when you have made a perfectly logical decision, but things still don't work out as planned. Well, there's a fascinating science behind this. Herbert Simon's groundbreaking research, beginning with his work on administrative behavior in 1947, challenged everything we thought we knew about decision making. Simon challenged the economic man model, which suggests that individuals make decisions by thoroughly analysing every available option. Contrary to his perspective, Simon's research revealed that we function more like what he called the administrative man.
Dr Austin Tay:This concept describes a person who makes reasonable decisions based on practical limitations and constraints. Recent neuroscience research by Viale et al. In 2023 has further validated Simon's insights. It shows how our brains' decision making processes differ significantly from traditional rational models. The researchers found that our decision making is deeply embodied, meaning our thoughts, physical experiences, and social interactions influence it.
Dr Austin Tay:Research done by Petraca in 2021 shows that factors like your physical environment, social interactions, and even your body's state significantly influence how you process information and make choices. Let us now look at three real world challenges that shape our decision. Let's explore what Simon identified as the three fundamental bounds of our rationality. What I like to call our brains' built in processing limits. Recent research has expanded our understanding of each of these.
Dr Austin Tay:One. Our mental inbox has limits. Research by Simon in 1972 indicates that our brains have specific limits in processing information, typically managing only four to seven pieces of information at the same time. The study by Viallet et al. In 2023 shows that our brains filter information automatically influenced by both conscious and unconscious factors.
Dr Austin Tay:Recent findings in neuroscience review that we heavily depend on pattern recognition and mental shortcuts. Todd et al in 2012 suggests that using these mechanisms can lead to more effective decision making, especially in complex situations. These cognitive limitations help to explain why having more information does not necessarily result in better decision making outcomes. Number two, the crystal ball problem or what we call incomplete information. Now, in 1955, Simon demonstrated that effective decision makers can work efficiently even when they possess only partial information.
Dr Austin Tay:The process of finding information incurs real costs in terms of both time and resources, which leads to a concept Simon referred to as 'satisficing' the idea of settling for a satisfactory solution rather than the optimal one. Now research by Petraca in 2021 indicates that our brains have developed in ways that enable us to make predictions even when we do not have complete information available. Viallet et al in 2023 highlight that decisions generate ripple effects that are often impossible to fully anticipate or even predict. Point number three, the time squeeze or the temporal constraints. Now Simon's research demonstrates that time pressure significantly impacts the decision making process.
Dr Austin Tay:Now within organizations, decisions are made sequentially, leading to what Viele et al. In 2023 described as path dependencies. Time constraints necessitate trade offs between the quality of decisions and the speed at which they are made. The pace of change in the environment often exceeds our ability to collect and also analyse relevant data. So how is modern science helping to revolutionise decision making?
Dr Austin Tay:Recent research has significantly enhanced our comprehension beyond Simon's initial thoughts. As mentioned, Viallet et al in 2023 uncovered three key aspects of decision making that traditional theories have overlooked. Number one. Embodied cognition. The research conducted by Vialet et al.
Dr Austin Tay:In 2023 explores the relationship between mirror neuron systems and social interaction. Their findings indicate that decision making involves cognitive functions and sensorimotor regions in the brain, highlighting the complex interplay between mental processes and physical interactions. Petraca's research in 2021 delves into embodied rationality, showing that our bodily states and physical sensations significantly influence the quality of our decision making. This suggests that our emotion and physical conditions can really shape our choices. Additionally, Viallet et al discovered that decision making is intricately connected to our physical interactions with the environment during inactive experiences.
Dr Austin Tay:This connection emphasizes the importance of considering both mental and bodily aspects when understanding how we make decisions. Two. Social dynamics. The identification of specialised neural networks can facilitate social learning. The research by Vielle et al highlights that social interaction plays a significant role in decision making, demonstrating how group decisions can help individuals overcome their limitations.
Dr Austin Tay:This concept is further supported by Galiesz's study on mirror neurons and social cognition, which explore how our neurological makeup influences our social interactions. Research has demonstrated that significance of real time social feedback can also enhance decision making processes. Three. Dynamic systems perspective. In his influential work, Simon in 1981 underscores the significance of environmental adaptation in decision making.
Dr Austin Tay:He argues that decision making should not be viewed as a one time event, but as a continuous and evolving process. This viewpoint emphasizes that our choices are not made in isolation, but are consistently shaped and influenced by the environment around us. Similarly, Viallet at Tell introduced the concept of inactive problem solving. They delve into how our decisions are closely linked to various environmental factors, highlighting that the situational context is vital in determining the outcomes of our choices. Essentially, our decisions do not exist in a vacuum.
Dr Austin Tay:They are affected by the circumstances we find ourselves in. Moreover, Petraca in 2021 explores the mechanism of embodied rationality. He focuses on the importance of rapid feedback cycles, which play a pivotal role in improving the quality of our decisions. Petraca proceeds that we can more effectively adjust our choices when we receive immediate feedback about our actions. This instant response not only aids us in making better decisions but also enhances our overall decision making processes over time.
Dr Austin Tay:So what are the research based solutions for making better decisions? Drawing from both classical and contemporary research, here are five evidence based strategies for improving organisational decision making: one. Environmental feedback integration Established feedback mechanisms inspired by Simon's nineteen eighty one research on how environments adapt. Utilize what Viele et al in 2023 referred to as inactive problem solving strategies. Develop systematic feedback loops that effectively capture both explicit and implicit responses from the environment.
Dr Austin Tay:Prioritise immediate feedback over delayed feedback, as emphasised by Petrucker's findings. Two. Social interaction enhancements Utilise insights from neuroscience research to enhance social decision making networks Develop collaborative problem solving activities that engage the mirror neuron systems to promote empathy and connection among participants. Design decision making processes that integrate diverse viewpoints, drawing on findings from collective intelligence studies to enhance outcomes. Implement social feedback mechanisms that align with what Simon referred to as procedural rationality, fostering more informed and reflective decisions.
Dr Austin Tay:Three. Physical environment optimisation Design workspaces that accommodate various cognitive styles to enhance productivity. Incorporate principles of embodied cognition when arranging the layout of the workplace. Develop spaces that encourage both individual thinking and group collaboration for effective decision making. Utilize environmental cues to guide and improve the decision making process for employees.
Dr Austin Tay:Four. Adaptive decision frameworks Shift from optimization to adaptation applying Simon's satisficing principle. Utilize iterative decision making processes informed by the latest research in dynamic systems. Incorporate feasibility into decision making frameworks Aim to develop robust solutions instead of striving for perfection. Five.
Dr Austin Tay:Cognitive load management Acknowledge the cognitive limitations as recognised by Simon (nineteen seventy two) to improve decision making effectiveness. Break down complex decisions into smaller, manageable parts to facilitate analysis and action. Consider the impact of decision fatigue, as highlighted in recent research and implement strategies to mitigate its effects. Incorporate reflection time based on findings from embodied connection studies to enhance understanding and retention of information. So what are the practical implementation you can follow?
Dr Austin Tay:Now research conducted by Vale and Tell indicates that for successful implementation, several key elements are essential. One. Regular assessments of decision making environments. It is crucial to regularly evaluate the context in which decisions are made to ensure they remain relevant and effective. Two.
Dr Austin Tay:Continuous adaptation of processes based on feedback. Processes should be adjusted continually based on the feedback received from stakeholders, allowing for ongoing improvement and responsiveness to changes. Three. Integration of social and physical factors in decision systems. Decision making systems must consider both the social dynamics and physical environments that impact decisions, ensuring a holistic approach.
Dr Austin Tay:Four. Recognition of both formal and informal decision processes. Effective implementation requires acknowledgment of both formal structures and informal practices that influence how decisions are made, allowing for a comprehensive understanding of the decision landscape. So based on the insights from today's research that I share, I encourage you to explore and modify your decision making process throughout this week. Number one, observe your physical state.
Dr Austin Tay:Notice how your physical feelings such as stress or comfort can affect the decision you make. Two. Record environmental influences. Keep a look of how various environmental factors like noise levels or lighting impact your choices. Three.
Dr Austin Tay:Examine social interactions. Reflect on how your conversations and interactions with others influence your decision making. Four. Experiment with feedback mechanisms. Try different types of feedback, such as constructive criticisms or positive reinforcement, to see how they affect your choices.
Dr Austin Tay:Share your experiences using SITEchat, while as Petraca twenty twenty one suggests, self awareness of our decision making processes is the first step to improvement. Effective decision making is not about achieving perfection, rather it involves skillfully navigating our natural limitations. This means recognizing that we all have constraints and making the best choices within those boundaries. Embracing our limitations allows for more realistic and achievable decision making processes, ultimately leading to better outcomes.
