• Home

discuss how anchoring effect may impact leadership for quality.

discuss how anchoring effect may impact leadership for quality.

In asking the question when did Ghandi die? For half of our class I’ll preface the question by saying: “Did he die before, or after the age of 9?” For the other half of you I’ll say: “Did he die before, or after the age of 140?”
Obviously these are not very helpful statements. Most folks know Gandhi was definitely older than 9; while the oldest person who ever lived was 122. So why would I bother making these apparently meaningless statements?
Because, according to the results of a study conducted by Strack and Mussweiler (1999), these initial statements, despite being unhelpful, affect the estimates you folks would make. In their experiment, the first group guessed an average age of 50 and the second, 67.
Neither group was that close. Ghandi was actually assassinated at 87; but you can still see the effect of the initial number. This experiment along with this week’s Doc X MD Funny Feelings “Anchoring Effect” actually demonstrates something fundamental about the way we think. It’s so basic to how we experience the world that we often don’t notice it. We have a tendency to use anchors, or reference points to make decisions and evaluations, and sometimes these lead us astray.
The “Anchoring Effect” impacts many areas of our lives. Take our emotions for starters. It is often difficult to predict our future emotions because we are anchored in how we feel right now. Another example is when we have just eaten lunch we feel like we’ll never be hungry again; compared with those who haven’t eaten and who don’t display the same short-sightedness. Real estate agents, car sellers, and healthcare providers are just a few professionals that experience the “Anchoring Effect” every day. That’s because anchors are vital in all these lines of work, and many more. The initial price one sets for a car, house or, healthcare appointment or a number we anticipate on a lab test tends to have ramifications right through the process of coming to an agreement. Whether we like it or not, our minds keep referring back to that initial number.
Assignment: Please discuss how anchoring effect may impact leadership for quality. Specifically discuss anchoring effects impact on organizational leadership’s five broad categories: setting direction, establishing the foundation; building the will; generating ideas; and executing change.