Dunning-Kruger effect in management

The Dunning-Kruger effect in management refers to a phenomenon where individuals with limited knowledge or skill in leadership overestimate their abilities, leading to overconfidence. Conversely, more competent managers tend to underestimate their expertise. This can result in less experienced managers making poor decisions due to their misplaced confidence, while skilled managers may hesitate to assert themselves. Recognizing this effect encourages managers to seek continuous learning and feedback, fostering better decision-making and leadership development within organizations.