“I did good; you did bad!”

Welcome to the fascinating world of the Self-Serving Bias. This cognitive bias is like that friend who takes all the credit when a group project goes well but is the first to point fingers when things go south.

In the business world, the invisible puppeteer makes individuals attribute their victories to their brilliance while blaming their blunders on everything but themselves.

Now, imagine a workplace where everyone is a superhero in their own comic book. When they succeed, it’s all due to their superpowers (read: skills and efforts). But when they fail, oh boy, it’s the villain’s fault (read: external factors). It’s never because they didn’t use their powers effectively or were too busy posing for the ‘Gram while the city was under attack. No, it’s always the villain, the weather, or the lack of good coffee in the break room.

This bias is like a defence mechanism, a shield that protects individuals from the kryptonite of self-doubt and feelings of inadequacy. It’s a fascinating phenomenon that can lead to very negative workplace consequences.

So, buckle up as we dive into the world of self-serving bias, where every success is a personal triumph, and every failure is… well, someone else’s fault.

Key Characteristics of Self-Serving Bias

Before we delve into the specifics, let’s set the stage for understanding the key characteristics of the Self-Serving Bias. This cognitive bias, a fascinating quirk of human psychology, is like a pair of rose-tinted glasses that people often wear, consciously or unconsciously. It subtly colours our perception of ourselves and our actions, leading to a skewed understanding of our role in our successes and failures. Now, let’s unpack this bias and explore the key characteristics that make it a prevalent part of our personal and professional lives.

1. Positive Self-Perception: Individuals with self-serving bias tend to view themselves in an overly positive light, which helps maintain their self-esteem and confidence.
2. Attribution Patterns: For example, members may credit their hard work and expertise if a team successfully completes a project. Conversely, they might blame external circumstances, such as market conditions or lack of resources, if the project fails.
3. Defence Mechanism: This bias often acts as a defence mechanism, allowing individuals to protect their self-image and avoid feelings of inadequacy.

Implications of Self-Serving Bias in Business

Team Dynamics: Self-serving bias can erode team chemistry. When team members fail to take responsibility for failures, it can lead to resentment and a lack of trust among colleagues.

Leadership Challenges: Leaders exhibiting self-serving bias may struggle to foster a culture of accountability. This can hinder effective communication and collaboration within teams.

Workplace Culture: A workplace that tolerates self-serving behaviours may reflect poor psychological safety, leading to decreased morale and productivity.

Examples of Self-Serving Bias in Practice

• Performance Reviews: Employees might attribute their promotion to their hard work while blaming a lack of recognition on their manager’s bias or poor judgment.
• Project Outcomes: In a failed project, a team member might argue that the failure was due to unforeseen market changes rather than acknowledging their lack of preparation.

Examples of this Bias in the real world

Let’s delve into some real-world examples of self-serving bias in the business world over the last 20 years.

The Financial Crisis of 2008

The financial crisis of 2008 provides a stark example of self-serving bias. Leading up to the crisis, many banking executives attributed their firms’ success to their strategic decisions and risk management skills. However, when the crisis hit, these same executives were quick to blame external factors such as unpredictable market conditions and regulatory failures. This self-serving bias prevented them from acknowledging their role in the crisis and learning from their mistakes.

Enron Scandal

The Enron scandal is another example of self-serving bias in action. Enron’s executives attributed the company’s initial success to their innovative business strategies and leadership. However, when the company’s fraudulent accounting practices were exposed, they blamed external factors such as market pressure and aggressive investors. This self-serving bias allowed them to maintain their positive self-image despite their unethical actions.

Volkswagen Emission Scandal

In the Volkswagen emission scandal, the company’s executives initially took credit for the company’s success in producing efficient diesel engines. However, when it was revealed that they had been cheating on emission tests, they blamed a handful of rogue engineers. This is a classic example of self-serving bias, where success is internalised, and failure is externalised.

Recognising and addressing self-serving bias is crucial for fostering a healthy workplace environment. By promoting accountability and encouraging open discussions about successes and failures, organisations can mitigate the adverse effects of this bias and enhance overall team performance.

What are your thoughts on self-serving bias?

Have you noticed it in your workplace?

Let’s start a conversation about this critical topic.

References

1. The Decision Lab – Self-Serving Bias
2. Wrike – Understanding Self-Serving Bias at Work
3. BetterUp – Self-Serving Bias
4. Develop Good Habits – Self-Serving Bias
5. The Role of Overconfidence and Moral Hazard in Banking Crises
6. The Role of Self-serving Bias in the Perception of the Fairness of Executive Compensation
7. Volkswagen Emission Scandal: A Business Management Case Study of Internal and External Environment and Recommendations for Management