Any cognitive advantage that is abused will be seen as manipulative, absolutely. The way to make "the illusion of choice" work is to be selective about it. You start out by giving the 4 year old the illusion of choice (the jacket or the sweater), but what you're really doing is coaching the child to make appropriate decisions. After a few times, you won't have to give the child the choice anymore, because they will know the parameters of the choices for the challenge facing them. You could simply say "let's get ready to go out."
Same thing with a boss. (S)he can use this cognitive tool to coach good decisions. People like choice and they like being right. Using this method allows for both.
Same thing with a boss. (S)he can use this cognitive tool to coach good decisions. People like choice and they like being right. Using this method allows for both.