Investigating the Halo Effect and Anchoring Cognitive Error in the action of urban leaders: A case study of Tehran Municipality

Document Type : Research Paper

Authors

1 Iran University of Science and Technology. school of management, economics and progressengineering

2 Head of the Parliamentary Islamic Research Center

3 Shahid Beheshti University

4 SBU · Department of Business Management Professor

5 School of Management, Economics, and Progress engineering, Iran University of Science and Technology

10.22034/rahbord.2024.423485.1612

Abstract

In this research, the impact of two cognitive errors, Halo Effect and Anchoring, on the performance of urban leaders was investigated, with a primary goal of examining their influence on the actions of urban rulers. The research employed a mixed-methods and qualitative approach, focusing on a case study of district mayors in Tehran Municipality, utilizing purposive sampling. Data collection for the qualitative aspect involved the examination of relevant texts, and 20 semi-structured interviews were conducted with urban leaders. the findings revealed that the Halo Effect could lead to the disregard of issues and potential criticisms, such as employee corruption and legal violations. Similarly, Anchoring Cognitive Error in decision-making results in intuitive decision-making, a lack of comprehensive understanding of issues, failure to engage with stakeholders, and incorrect prioritization. Intuitive decision-making may stem from excessive self-confidence and self-reliance, while cognitive errors involve incorrect prioritization and improper resource management. the research underscores the significance for urban leaders to address these issues to enhance their decision-making and actions. It indicates that the Halo Effect may result from structural problems and managerial deficiencies, possibly due to lack of support from higher authorities or discriminatory thinking, neglecting justice and dynamism aspects in the governance system. Additionally, the study shows that Anchoring Cognitive Error, as a cognitive bias, is rooted in five fundamental factors: intuitive decision-making, lack of a comprehensive perspective on issues, shortcomings in stakeholder interaction, disregard for intelligent management in the face of rapid environmental changes, and incorrect prioritization with deficiencies in resource management.

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Articles in Press, Accepted Manuscript
Available Online from 12 March 2024
  • Receive Date: 02 November 2023
  • Revise Date: 02 February 2024
  • Accept Date: 12 March 2024