Self-Serving Bias in Organizations

Self-serving bias is an example of a cognitive bias, which is the human tendency to make systematic errors based on thought-related factors rather than evidence. Cognitive biases are detectable by comparing the judgments people make when they are inside a given situation to the judgments they make when assessing the same situation from outside.

Self-serving bias is the tendency to attribute our success and triumph to our own skills and talents, and our failures to situational factors or to the actions (or inactions) of others.

As a humorous example, self-serving bias is probably the reason why all the children in Lake Wobegon are above average.

Here are examples illustrating how self-serving bias affects organizational decision-making.

Lessons learned exercises

In lessons-learned or after-action exercises, teams are subject to self-serving bias, and its related group form, group-serving bias. These biases create a tendency to attribute to external factors anything that went wrong, while attributing to the team's own deeds and abilities anything that went right.

Risk plans

To some extent, Bureaucratic controls tend to
control the managed more
effectively than they
control managersacknowledging risk entails acknowledging vulnerability. Self-serving bias makes us more likely to acknowledge risks related to external situational factors than we are to acknowledge risks arising from our own shortcomings, our team's shortcomings, or shortcomings in our plans.

Security systems

Because self-serving bias can make us reluctant to acknowledge internal security threats, systems tend to be better defended against external threats than they are against threats from within.

Bureaucratic controls

Since bureaucratic controls are designed to meet the goals of management, self-serving bias leads to emphasis on employees who are managed, rather than the managers themselves. Bureaucratic controls tend to control the managed more effectively than they control managers.

Performance bonuses and layoffs

When bonuses are distributed in outsized proportions to those who determine the distribution pattern, many see this as a manifestation of simple greed. But self-serving bias almost certainly plays a role, because it tends to make those who determine the distribution pattern attribute more of the organization's success to themselves than to others. Conversely, when layoffs and cost reductions hit harder those people of the organization most removed from decision-making, self-serving bias probably plays a role as well.

Negotiations

In negotiations, self-serving bias creates risk of impasse because each party tends to overvalue arguments in its favor, and undervalue arguments in favor of their negotiating partners.

An intervention that can at least temporarily reduce the effects of self-serving bias begins with informing the decision-makers of cognitive biases in general, and specifically self-serving bias. Second, the decision-makers are directed to compile lists of contra-biasing insights — ways in which their own performance has contributed or could contribute to depressed performance, and ways in which the performance of others has contributed or could contribute to enhanced performance. It might be a good idea for all of us to meditate on that now and then.  Top    Next Issue

Are your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!

Read more about self-serving bias at Wikipedia.

Your comments are welcome

About Point Lookout

Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.

Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.

Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.

Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.

Related articles

More articles on Personal, Team, and Organizational Effectiveness:

Problem Defining and Problem Solving

Sometimes problem-solving sessions are difficult because we get started solving a problem before we know what problem we're solving. Understanding the connection between stakeholders, problem solving, and problem defining can reduce conflict and produce better solutions.

Tactics for Asking for Volunteers: II

When we seek volunteers for specific, time-limited tasks, a common approach is just to ask the entire team at a meeting or teleconference. It's simple, but it carries risks. There are alternatives.

Favors, Payback, and Thoughtlessness

Someone at work who isn't particularly a friend or foe has asked you for a favor. What happens if you say no? Do you grant the favor? How do you decide what to do?

Confirmation Bias: Workplace Consequences Part II

We continue our exploration of confirmation bias. In this Part II, we explore its effects in management processes.

How to Foresee the Foreseeable: Recognize Haste

When trouble arises after we commit to a course of action, we sometimes feel that the trouble was foreseeable. One technique for foreseeing the foreseeable depends on recognizing haste in the decision-making process.

See also Personal, Team, and Organizational Effectiveness, Emotions at Work and Cognitive Biases at Work for more related articles.

Forthcoming issues of Point Lookout

Coming April 1: Incompetence: Traps and Snares

Sometimes people judge as incompetent colleagues who are unprepared to carry out their responsibilities. Some of these "incompetents" are trapped or ensnared in incompetence, unable to acquire the ability to do their jobs. Available here and by RSS on April 1.

And on April 8: Intentionally Misreporting Status: I

When we report the status of the work we do, we sometimes confront the temptation to embellish the good news or soften the bad news. How can we best deal with these obstacles to reporting status with integrity? Available here and by RSS on April 8.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenmhXARWRMUvVyOdHlner@ChacxgDmtwOKrxnripPCoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.

Get the ebook!

Past issues of Point Lookout are available in six ebooks:

• Get 2001-2 in Geese Don't Land on Twigs (PDF, )
• Get 2003-4 in Why Dogs Wag (PDF, )
• Get 2005-6 in Loopy Things We Do (PDF, )
• Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
• Get 2009-10 in The Questions Not Asked (PDF, )
• Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )

Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500 words in your inbox in one hour. License any article from this Web site. More info

Public seminars

The Power Affect: How We Express Our Personal Power

Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.

• A recording of a program presented June 29, 2017, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.