A timidity bias in evaluations : Evaluators judge others to be too risk averse 1

Managers often lament that their employees are risk averse and do not take sufficient risks. While in some instances employees might in fact be too risk averse, we explore situations in which managers may incorrectly judge their employees to be overly risk averse or timid. In two studies, we find evidence of a timidity bias in evaluations--evaluators judge target decision makers to be risk averse, even when the targets are actually employing a more thoughtful approach than their evaluators. Errors of Evaluation 1 A timidity bias in evaluations: Evaluators judge others to be too risk averse