Behavioral influence on operational performance

The use of teams in operations is a well-established way of structuring an organization with the purpose to perform tasks more effectively and improve operational performance and competitive advantage. There has been a great deal of research on teams and team performance in the academic literature (Tversky & Kahneman, 1974; Hayes et al., 1988; Boudreau et al. 2003). The results of this research and practice showed that team performance is not only influenced by operational factors but also by human behavior, in particular behavioral biases. It is argued that behavioral biases systematically affect (and often distort) a person’s judgment and decision-making (Gino & Pisano, 2008). This study focuses on the anchoring & adjustment bias.