Description Essay
Decision Making Reading Brief
Francesca Napolitano
MGMT 401-02
November 13, 2012
1. The phenomenon of bounded awareness occurs when cognitive blinders prevent an individual from seeing, seeking, using, or sharing highly significant, easily accessible, and readily perceivable information during the decision-making process. It is different from information overload, however, because even when given sufficient time to make decisions, most people still fail to bring the correct information into their cognitive awareness at the right time. Bounded awareness occurs at three major points in the decision-making process. First, executives may fail to see or seek out vital information needed to make a sound decision. Second, they may fail to use the information that they do not see because they are unaware of its relevance. Last, executives may fail to share information with others, resulting in the overall bounding of an organization’s awareness. The failure of executives to see information is caused by maintaining focus on solely one task, for focus limits awareness. Oftentimes executives fail to keep alert of peripheral threats and opportunities because they concentrate completely on the job at hand. Failure to notice changes in the environment (regulatory, political, or market-oriented) keeps executives from adapting new strategies so that their organizations can thrive. Executives may fail to seek information when they are motivated to favor a particular outcome. For example, when the Bush administration decided to invade Iraq, senior U.S. government officials were caught up in their own bounded awareness and did not search for information that would argue against an invasion. Because of this, these officials failed to notice indicators that their evaluation of the situation in Iraq was wrong, particularly regarding the existence of weapons of mass destruction. Many executives fail to use accessible and valuable information when they are making
Francesca Napolitano
MGMT 401-02
November 13, 2012
1. The phenomenon of bounded awareness occurs when cognitive blinders prevent an individual from seeing, seeking, using, or sharing highly significant, easily accessible, and readily perceivable information during the decision-making process. It is different from information overload, however, because even when given sufficient time to make decisions, most people still fail to bring the correct information into their cognitive awareness at the right time. Bounded awareness occurs at three major points in the decision-making process. First, executives may fail to see or seek out vital information needed to make a sound decision. Second, they may fail to use the information that they do not see because they are unaware of its relevance. Last, executives may fail to share information with others, resulting in the overall bounding of an organization’s awareness. The failure of executives to see information is caused by maintaining focus on solely one task, for focus limits awareness. Oftentimes executives fail to keep alert of peripheral threats and opportunities because they concentrate completely on the job at hand. Failure to notice changes in the environment (regulatory, political, or market-oriented) keeps executives from adapting new strategies so that their organizations can thrive. Executives may fail to seek information when they are motivated to favor a particular outcome. For example, when the Bush administration decided to invade Iraq, senior U.S. government officials were caught up in their own bounded awareness and did not search for information that would argue against an invasion. Because of this, these officials failed to notice indicators that their evaluation of the situation in Iraq was wrong, particularly regarding the existence of weapons of mass destruction. Many executives fail to use accessible and valuable information when they are making