Mistakes

Definition

With hindsight, any decision that has unintended consequences may be considered to have been a mistake. It is more useful, however, to define a mistake as a misguided decision, whatever its consequences. The unintended consequence that is to be expected of a misguided decision may be avoided by chance; and chance may result in an unintended consequence that could not have been anticipated. A driver may escape a collision when he crosses a busy junction against a red light. He may also be the victim of someone else who does so - but in that case, his decision to cross the junction legally cannot usefully be considered to have been a mistake, despite its unintended consequence.

Overview

Among the purposes of studies of mistakes has been the discovery of ways of avoiding them. Experimental psychology has revealed the existence of subconscious characteristics of the human brain that are conducive to misguided choices, but it has also revealed the possibility of conscious control over the subconscious. Other studies have explored the effects of organisations, organisational environments and administrative procedures.

The causes of mistakes have been categorised as misinformation, the misinterpretation of information, and decision errors.

Misinformation

Misinformation in the form of "creative accounting" is a common feature of company accounts. It has not been uncommon for the demise of a company to follow closely upon a report of its good health. Auditors and credit rating agencies, whose functionis to protect investors, are frequently paid by the companies on which they report. Inadvertant expert error is more common than delberate deception, however.