The Representativeness Heuristic- The belief in how something looks or will work out based solely on preconceived notions or ideas about how something should look or work out.
Intuition is a great tool for managers to use, especially when they do not have the time to analyze information or pore over data. One of the many issues that can arise from intuitive thinking is The Representativeness Heuristic. Managers have to be careful with how much credit they give to their own beliefs formed from an opinion on how things should be or are likely to be. Remaining open to all possibilities allows for a larger share of possible solutions. The likelihood that the most effective and efficient solution can be found is improved when managers are open to more ideas.
Intuition is a great tool for managers to use, especially when they do not have the time to analyze information or pore over data. One of the many issues that can arise from intuitive thinking is The Representativeness Heuristic. Managers have to be careful with how much credit they give to their own beliefs formed from an opinion on how things should be or are likely to be. Remaining open to all possibilities allows for a larger share of possible solutions. The likelihood that the most effective and efficient solution can be found is improved when managers are open to more ideas.