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“We Speak Your Language”
Retained Executive Search Recruitment Outsourcing Leadership Consulting
“We Speak Your Language”
Making Better Decisions as a HR Leader MTSHRM-September 2017 - - PowerPoint PPT Presentation
Making Better Decisions as a HR Leader MTSHRM-September 2017 - - PowerPoint PPT Presentation
Making Better Decisions as a HR Leader MTSHRM-September 2017 Retained Executive Search Recruitment Outsourcing Leadership Consulting We Speak Your Language We Speak Your Language We Speak Your Language We Speak Your
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“We Speak Your Language” “We Speak Your Language”
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“We Speak Your Language” “We Speak Your Language”
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“We Speak Your Language” “We Speak Your Language”
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“We Speak Your Language”
Decisions
- How?
- Why?
- When?
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“We Speak Your Language”
Making decisions…
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“We Speak Your Language” “We Speak Your Language”
Brain teaser: Please consider Linda, a 31-year-old woman, single and bright. When she was a student, in high school and in college too, she was deeply involved in social justice issues, and also participated in environmental protests. Which is more probable about Linda’s occupation today? a) Linda works as a TV reporter; b) Linda is a bank teller; c) Linda is a bank teller, and she’s very active in the environ- mental movement. Quick, what’s your answer? a) or b) or c)? And, in what precise order?
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HR leaders and Decision Making
- Strategic issues
–Global issues (Local vs. Global; Make vs. Buy) –Employment vs outsourcing –Talent acquisition
- Internal vs external
- Tactical issues
–Increase workforce vs overtime –Talent depth vs Talent breadth
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Traditional decision making
- 1. Create a constructive environment.
- 2. Investigate the situation in detail.
- 3. Generate good alternatives.
- 4. Explore your options.
- 5. Select the best solution.
- 6. Evaluate your plan.
- 7. Communicate your decision, and take
action.
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But the problem is this…
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“We Speak Your Language” “We Speak Your Language”
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“We Speak Your Language”
Fill in the blank
- SO_P
–Why did you answer this way?
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Our decisions are often biased
- We have two ways of thinking
–System 1-thinking fast –System 2-thinking slow
- System one is more intuitive and quick
- System two is deliberative and involves
effort
From “Thinking Fast and Slow” by Daniel Kahneman
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One more example
- What is 2 x 2?
- What is 12 x 14?
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System 1 vs. System 2
- System 1 thinking is practically effortless
- System 2 requires effort and will interfere with
- ther processes
–Here is an example
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Our decisions are influenced-Heuristics
- Priming (environmental impact)
- Cognitive ease (familiarity)
- Confirmation bias (seeing what we want)
- Halo effect (WYSIATI)
- Prospect Theory
- Loss Aversion
- Small Probabilities
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“We Speak Your Language”
Cognitive ease
- Cognitive ease makes us feel more favorable
toward things that are familiar, easy to understand, and easy to see or read.
- We feel less favorable toward what is
unfamiliar, difficult to understand, or difficult to see or read
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“We Speak Your Language”
Confirmation bias
- Confirmation bias causes us to selectively
notice and pay attention to what confirms our beliefs and to ignore what doesn’t.
– Example: Gun control
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“We Speak Your Language”
Halo effect
- When we consider someone to be a good
person, we find it easier to excuse or ignore behavior that is inconsistent with being a good person.
– Good people can do no wrong. – On the other hand, if we consider someone to be a bad person, we find it hard to accept that he or she has any positive qualities. Bad people can do no good.
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Recency vs Quality
- The brain is wired to notice change over stasis
– New email – Text – Social media post
- Our brain gives more power to recent
information
- Too much information can lead to no decision
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Prospect theory
- Certainty
–People have a strong preference for certainty and are willing to sacrifice income to achieve more
- certainty. For example, if option A is a guaranteed
win of $1,000, and option B is an 80 percent chance
- f winning $1,400 but a 20 percent chance of
winning nothing, people tend to prefer option A.
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“We Speak Your Language”
Loss aversion
- People tend to give losses more weight than
gains — they’re loss averse. So, if you gain $100 and lose $80, it may be considered a net loss in terms of satisfaction, even though you came out $20 ahead, because you’ll tend to focus on how much you lost, not on how much you gained.
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Small probabilities
- People tend to under-react to low-probability
- events. So, you may completely discount the
probability of losing all your wealth if the probability is very small. This tendency can result in people making super-risky choices.
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“We Speak Your Language”
System 1 vs. System 2
SYSTEM 1 SYSTEM 2 Subconscious values, drives, beliefs that influence our “gut reactions.” Articulates judgments, makes choices, endorses or rationalizes ideas and feelings Jumps to conclusions regarding causality. Makes up stories to either confirm or deny those conclusions. Operates effortlessly. Requires conscious effort to engage. Can be wrong but is more often right. Can be wrong or right depending on how hard it works. Influenced by heuristics. Examines those heuristics when so inclined.
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“We Speak Your Language”
Consider this
- You can hire two talent acquisition specialists
at a fully loaded cost of $80K per person/year
- You can outsource talent acquisition at a cost
- f $130K per year
Which project is more attractive to you?
- Why?
- What affected your decision?
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Situations for discussion
- 1. Your firm has the choice of the three
proposals below for a new HRIS system installation
i. Proposal A has a projected cost of $500K, and the probability of success is 40% ii. Proposal B has a projected cost of $1200K, and the probability of success is 75% Which option would you choose? Why?
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“We Speak Your Language”
Discussion
Form groups of 3 and discuss the following:
- Which of the issues
discussed interrupts your decision making most?
–What will you do about this?
- Priming (environmental
impact)
- Cognitive ease (familiarity)
- Confirmation bias (seeing
what we want)
- Halo effect (WYSIATI)
- Prospect Theory
- Loss Aversion
- Small Probabilities
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“We Speak Your Language” “We Speak Your Language”
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“We Speak Your Language”