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Working Memory

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Business Cognitive Bias

Definition

Working memory is a cognitive system that temporarily holds and manipulates information necessary for complex tasks such as learning, reasoning, and comprehension. It plays a critical role in decision-making, allowing individuals to keep relevant data active while considering options or solving problems. This system helps manage cognitive load by filtering out unnecessary information and focusing on what is essential for effective decision-making.

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5 Must Know Facts For Your Next Test

  1. Working memory typically has a limited capacity, often described by Miller's Law as being able to hold around 7±2 items at once.
  2. The duration of information retention in working memory is brief, usually lasting only about 20-30 seconds without rehearsal.
  3. Working memory is crucial for tasks such as mental math, language comprehension, and following multi-step instructions, making it a vital tool in decision-making.
  4. Diverse strategies like checklists can help enhance the effectiveness of working memory by offloading some cognitive demands and reducing errors in decision-making.
  5. Individuals with stronger working memory capacities tend to perform better in tasks that require reasoning and problem-solving due to their ability to manage multiple pieces of information simultaneously.

Review Questions

  • How does working memory influence decision-making processes in business contexts?
    • Working memory influences decision-making by allowing individuals to hold and process relevant information while evaluating options. In business settings, this means that managers can analyze data, consider past experiences, and weigh potential outcomes all at once. Effective use of working memory helps reduce errors in judgment and enhances the quality of decisions made under pressure.
  • In what ways can decision aids like checklists support the limitations of working memory?
    • Decision aids such as checklists can help mitigate the limitations of working memory by providing a structured way to organize and prioritize information. By offloading some cognitive demands onto an external tool, individuals can focus their mental resources on analyzing critical data rather than trying to remember every detail. This can lead to more accurate decision-making as it reduces the likelihood of overlooking important factors.
  • Evaluate the implications of working memory capacity differences among individuals on group decision-making outcomes.
    • Differences in working memory capacity among individuals can significantly impact group decision-making outcomes. Groups with members who possess higher working memory capabilities may be better at integrating complex information, leading to more thorough analyses and improved solutions. Conversely, if many group members struggle with working memory tasks, it can lead to confusion, miscommunication, and suboptimal decisions. Understanding these differences can guide strategies to enhance collaboration and effectiveness within teams.
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