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

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Read more about self-serving bias at Wikipedia.

More about layoffs

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A doorknob disclosure is an uncomfortable, painful, or embarrassing revelation offered at the end of a meeting or conversation, usually by someone who's about to exit. When we learn about bad news in this way, we can feel frustrated and trapped. How can we respond effectively?

Double Your Downsizing Damage  [July 17, 2002]

Some people believe that senior management is actually trying to hurt their company by downsizing. If they are they're doing a pretty bad job of it. Here's a handy checklist for evaluating the performance of your company's downsizers.

What's So Good About Being Laid Off?  [December 25, 2002]

Layoffs during the holiday period of November 15 through January 15 are far more common than you might think. Losing your job, or fearing that you might, is always difficult, but at this time of year it's especially helpful to keep in mind that the experience does have a bright side.

Beyond WIIFM  [August 13, 2003]

Probably the most widely used tactic of persuasion, "What's In It For Me," or WIIFM, can be toxic to an organization. There's a much healthier approach that provides a competitive advantage to organizations that use it.

Encourage Truth Telling  [November 19, 2003]

Getting to the truth can be a difficult task for managers. People sometimes withhold, spin, or slant reports, especially when the implications are uncomfortable or threatening. A culture that supports truth telling can be an organization's most valuable asset.

Those Across-the-Board Cuts That Aren't  [July 14, 2004]

One widespread feature of organizational life is the announcement of across-the-board cuts. Although they're announced, they're rarely "across-the-board." What's behind this pattern? How can we change it to a more effective, truthful pattern?

Organizational Loss: Searching Behavior  [April 16, 2008]

When organizations suffer painful losses, their responses can sometimes be destructive, further harming the organization and its people. Here are some typical patterns of destructive responses to organizational loss.

How to Avoid a Layoff: The Inside Stuff  [January 28, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for changing your frame of mind to help reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Relationships  [February 4, 2009]

In troubled economic times, layoffs loom almost everywhere. Here are some tips for reconfiguring your relationships with others at work and at home to reduce the chances that you will be laid off.

How to Avoid a Layoff: Your Situation  [February 11, 2009]

These are troubled economic times. Layoffs are becoming increasingly common. Here are some tips for positioning yourself in the organization to reduce the chances that you will be laid off.

Four Popular Ways to Mismanage Layoffs: I  [February 18, 2009]

When layoffs are necessary, the problems they are meant to address are sometimes exacerbated by mismanagement of the layoff itself. Here is Part I of a discussion of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Four Popular Ways to Mismanage Layoffs: II  [February 25, 2009]

Staff reduction is needed when expenses overtake revenue. But when layoffs are misused, or used too late, they can harm the organization more than they help. Here's Part II of an exploration of four common patterns of mismanagement, and some suggestions for those managers and other employees who recognize the patterns in their own companies.

Coping with Layoff Survival  [March 25, 2009]

Your company has just done another round of layoffs, and you survived yet again. This time was the most difficult, because your best pal was laid off, and you're even more fearful for your own job security. How can you cope with survival?

Teamwork Myths: Conflict  [June 17, 2009]

For many teams, conflict is uncomfortable or threatening. It's so unpleasant so often that many believe that all conflict is bad — that it must be avoided, stifled, or at least managed. This is a myth. Conflict, in its constructive forms, is essential to high performance.

Teamwork Myths: I vs. We  [July 1, 2009]

In high performance teams, cooperative behavior is a given. But in the experience of many, truly cooperative behavior is so rare that they believe that something fundamental is at work — that cooperative behavior requires surrendering the self, which most people are unwilling to do. It's another teamwork myth.

Hyper-Super-Overwork  [August 5, 2009]

The prevalence of overwork has increased with the depth of the global recession, in part because employers are demanding more, and in part because many must now work longer hours to make ends a little closer to meeting. Overwork is dangerous. Here are some suggestions for dealing with it.

What Is Workplace Bullying?  [March 3, 2010]

We're gradually becoming aware that workplace bullying is a significant deviant pattern in workplace relationships. To deal effectively with it, we must know how to recognize it. Here's a start.

Sixteen Overload Haiku  [October 27, 2010]

Most of us have some experience of being overloaded and overworked. Many of us have forgotten what it is not to be overloaded. Here's a contemplation of the state of overload.

Self-Serving Bias in Organizations  [July 20, 2011]

We all want to believe that we can rely on the good judgment of decision makers when they make decisions that affect organizational performance. But they're human, and they are therefore subject to a cognitive bias known as ``Em''self-serving bias``/Em''. Here's a look at what can happen.

Pariah Professions: I  [June 5, 2013]

In some organizations entire professions are held in low regard. Their members become pariahs to some people in the rest of the organization. When these conditions prevail, organizational performance suffers.

Changing Blaming Cultures  [March 5, 2014]

Culture change in organizations is always challenging, but changing a blaming culture presents special difficulties. Here are three reasons why.

Constancy Assumptions  [July 16, 2014]

We necessarily make assumptions about our lives, including our work, because assumptions simplify things. And usually, our assumptions are valid. But not always.

Rationalizing Creativity at Work: II  [November 5, 2014]

Creative thinking at work can be nurtured or encouraged, but not forced or compelled. Leaders who try to compel creativity because of very real financial and schedule pressures rarely get the results they seek. Here are examples of tactics people use in mostly-futile attempts to compel creativity.

Why We Don't Care Anymore  [April 8, 2015]

As a consultant and coach I hear about what people hate about their jobs. Here's some of it. It might help you appreciate your job.

Managing Wishful Thinking Risk  [October 21, 2015]

When things go wrong, and we look back at how we got there, we must sometimes admit to wishful thinking. Here's a framework for managing the risk of wishful thinking.

Wishful Significance: I  [December 16, 2015]

When things don't work out, and we investigate why, we sometimes attribute our misfortune to "wishful thinking." In this part of our exploration of wishful thinking we examine how we arrive at mistaken assessments of the significance of what we see, hear, or learn.

Nine Brainstorming Demotivators: I  [January 31, 2018]

The quality of the output of brainstorming sessions is notoriously variable. One source of variation is the enthusiasm of contributors. Here's Part I of a set of nine phenomena that can limit contributions to brainstorm sessions.

Conway's Law and Technical Debt  [January 30, 2019]

Conway's Law is an observation that the structures of systems we design tend to replicate our communication patterns. This tendency might also contribute to their tendency to accumulate what we now call technical debt.

Layoff Warning Signs: I  [August 21, 2024]

One of the better career moves you can make is leaving your current position before your employer conducts layoffs. When you choose the time, you aren't under pressure and you make better decisions. Here are eight warning signs of coming layoffs.

Layoff Warning Signs: II  [August 28, 2024]

Layoffs often signal their arrival well in advance, if you know what to watch for. Some of the indicators are subtle and easily confused with normal operations. Here are three more indicators that layoffs might be secretly underway.

Beating the Layoffs: I  [September 4, 2024]

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily before the layoffs can carry significant advantages. Here are some that relate to self-esteem, financial anxiety, and future employment.

Beating the Layoffs: II  [November 20, 2024]

If you work in an organization likely to conduct layoffs soon, keep in mind that exiting voluntarily can carry advantages. Here are some advantages that relate to collegial relationships, future interviews, health, and severance packages.

Mitigating the Trauma of Being Laid Off  [April 2, 2025]

Trauma is an emotional response to horrible events — accidents, crimes, disasters, physical abuse, emotional abuse, gross injustices — and layoffs. Layoff trauma is real. Employers know how to execute layoffs with compassion, but some act out of cruelty. Know how to defend yourself.

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