What is a major risk associated with the use of stereotypes in decision making?

The use of stereotypes in decision-making carries the major risk of overgeneralization of groups. Stereotypes simplify complex human characteristics into broad categories, often overlooking individual differences and nuanced traits. This overgeneralization can lead to inaccurate assumptions about people's abilities, behaviors, and preferences based solely on their group identity, such as race, gender, or age.

When decision-makers rely on stereotypes, they may fail to consider relevant information about individuals that might affect the outcome or effectiveness of a decision. This can lead to unfair treatment, discrimination, and the perpetuation of inequality, as individuals may be judged based on preconceived notions rather than their actual qualifications or potential. Ultimately, this undermines the goal of making informed and equitable decisions that recognize the diversity within groups.

In contrast, the other options do not accurately capture the risks associated with stereotypes; increased creativity and unbiased perspectives are typically outcomes of a fair and informed decision-making process, while resource allocation issues are generally more about systemic or organizational inefficiencies rather than the direct consequence of using stereotypes.