Improving Decision Making Through Mindfulness

Forthcoming in Mindfulness in Organizations, Reb, J., & Atkins, P. (Eds.), Cambridge University Press.

INSEAD Working Paper No. 2014/43/DSC

38 Pages Posted: 31 May 2014

See all articles by Natalia Karelaia

Natalia Karelaia

INSEAD - Decision Sciences

Jochen Reb

Singapore Management University - Lee Kong Chian School of Business

Date Written: May 30, 2014

Abstract

Decisions shape personal and organizational outcomes, and both researchers and practitioners look for ways to enhance decision making prowess. In this chapter, we explore whether and how mindfulness might help at various stages of decision making. We suggest that mindfulness may help notice when a decision should or could be made, increase goal awareness, enhance consistency of the decision with one’s fundamental values, facilitate option generation, reduce the sunk cost bias, and help recognize ethical challenges of decisions. We further argue that while mindfulness may diminish the scope of information search, it may also improve the quality of information used to make a decision. It may also reduce confirmation bias and overconfidence, allow decision makers to better differentiate between relevant and irrelevant information, reduce reliance on stereotypes, help appreciate uncertainty and productively deal with it, and reduce illusory pattern detection. Furthermore, mindfulness is likely to facilitate resolving trade-offs and help effectively reconcile intuition with analysis thereby reducing procrastination. Finally, mindful decision makers are more likely to learn to make better decisions over time because they are more open to feedback and less prone to misinterpret it by making self-serving attributions. The potential of mindfulness to improve judgment and decisions provides many promising opportunities for future research.

Keywords: Mindfulness, Decision Making, Judgment, Awareness, Biases

Suggested Citation

Karelaia, Natalia and Reb, Jochen, Improving Decision Making Through Mindfulness (May 30, 2014). Forthcoming in Mindfulness in Organizations, Reb, J., & Atkins, P. (Eds.), Cambridge University Press.; INSEAD Working Paper No. 2014/43/DSC. Available at SSRN: https://ssrn.com/abstract=2443808

Natalia Karelaia (Contact Author)

INSEAD - Decision Sciences ( email )

United States

Jochen Reb

Singapore Management University - Lee Kong Chian School of Business ( email )

469 Bukit Timah Road
Singapore 912409
Singapore

Register to save articles to
your library

Register

Paper statistics

Downloads
819
rank
27,071
Abstract Views
3,154
PlumX Metrics