Test 1 Judgment in Managerial Decision Making Chapters 1

Test 1: Judgment in Managerial Decision Making (Chapters 1-7)

Our self control is limited, with the end goal that we tend to give more prominent weight to present worries than to future concerns. Our self-interest is limited, with the end goal that we think about our own results, as well as about the results of others. Our mindfulness is limited in a way that makes us disregard self-evident, imperative, and promptly accessible data that lies past our quick consideration. Our ethicality is additionally limited, or is constrained in methods for which we are uninformed.

  1. In what ways is our rationality bounded? Discuss the aspects that are bounded in our judgment and how they are bounded.

the picked system depends partially on the level of imperative on individuals’ assets – predominantly subjective burden, time, and cash. At the point when these assets are not constrained, i.e. at the point when individuals have enough time, cash and significant serenity to direct a careful basic leadership process, they will utilize system 2 considering. Interestingly, the busier and more surged individuals are, the more they have on their psyches, in this way they will probably depend on system 1 considering. System 2 is additionally more inclined to assume control when individuals understand that system1 is neglecting to create agreeable results.

  1. What affects whether system 1 thinking or system 2 thinking will occur? What are the conditions which make the use of one system more likely than the use of the other?

3)      What is the planning fallacy and when is it the most likely to occur?

The planning fallacy is Associate in Nursing intuitively obvious and scientifically well-measured tendency of individuals to assume comes can take less time than they are doing which the result are going to be higher than is even by past knowledge or expertise. as an example, newlyweds virtually universally expect their marriages to last a lifespan, once really but 1/2 marriages really do.

4)      Why do many argue that over placement is more problematic than under placement?

Over placement is maybe the foremost outstanding manifestation of the certainty impact. Over placement could be a judgment of your performance compared to a different. This subdivision of certainty happens once individuals believe themselves to be higher than others. It’s the act of inserting yourself or rating yourself higher than others Over placement a lot of usually happens on easy tasks, ones we tend to believe area unit straightforward to accomplish with success. One rationalization for this theory is its ability to self-enhance.

5)      In many organizations, the most competent employees are usually poor in tutoring subordinates and new employees. Indicate the bias that is responsible for this phenomenon and explain how this phenomenon occurs.

6)      Which bias accounts for the “sophomore jinx” phenomenon, in which athletes who did exceptionally well in their rookie season usually follow with a disappointing second season? Explain the reason for this phenomenon.

A sophomore slump or sophomore jinx or sophomore jitters refers to associate degree instance during which a second, or sophomore, effort fails to measure up to the standards of the primary effort. it’s usually accustomed ask the apathy of scholars, athletes, TV shows

It is a phenomenon which will happen anyplace and anytime to anyone. All individuals concern regarding their future career, personal relationships and identity a minimum of once in their lifespan. In alternative words, the jinx is reasonably a natural growing pain. “Only a deceased person doesn’t get stressed. By work undergraduates, all students from freshmen to seniors were found to be stressed regarding their future or identity.

7)      When trying to generate an accurate probability assessment, why is it better to consider all possible outcomes to a problem than to consider each possible outcome separately?

The probabilities of the assorted attainable outcomes area unit identified

The probabilities of the assorted attainable outcomes aren’t identified

Most real-life things involve uncertainty

Uncertainty, though, is difficult to investigate, thus instead we have a tendency to typically assume that we have a tendency to do grasp the chances of all of the outcomes. Games of likelihood area unit the things that return nearest to having identified chances for all outcomes.

8)      Describe the main difference between the bounded awareness of individuals and the bounded awareness of groups.

In Bounded Awareness in Groups, awareness of the group is bounded by information that becomes part of the discussion.

In Bounded Awareness of Individuals, the distinct 3 propositions are: managers’ dependence upon their existing implied information interacts with the bounds on their awareness in an exceedingly cycle of positive reinforcement; completely different call manufacturers within the organization will expertise differing bounds on their awareness towards constant piece of information; and also the tension between experiences of success and failure influences the event of delimited awareness in people.

9)      According to the Multiple-Selves theory, what is the subject of disagreement between the two “selves”?

People behave like 2 people, one that’s in favor of immediate gratification, the opposite different providing bigger future price.

Theory accustomed account for a spread of dysfunctional behaviors.

10)   Describe one proposed approach to dealing with the conflict between the “want” self and the “should” self.

The want-self is myopic and needs instant gratification. If left to its own devices, the want-self would invariably act on immediate, visceral needs (e.g., disbursal rather than saving cash, feeding food rather than health food). The should-self, on the opposite hand, prefers to behave during a method that may maximize semi permanent advantages. If left to its own devices, the should-self would invariably act on behalf of a personality’s long best interests (e.g., saving cash or donating it to an honest cause rather than disbursal frivolously, feeding food rather than junk food).

11)   How can an organization change its reward scheme to discourage the preference of impression management over high-quality decision making?

For optimum results, groups have to be compelled to embody deep-level diversity as a part of the method for achieving cohesiveness

Overall, the varsity of thought that’s most generally accepted, with reference to team cohesion, is that “surface-level variations are necessary smaller and deep-level variations are additional important for teams that had interacted additional typically

The roles that management has in an exceedingly team that they supervise are very vital. However, it’s conjointly vital for the management to know the boundaries of what their roles and responsibilities are and what the roles and responsibilities of the team itself ar. The manager is usually placed within the management position due to their individuals and technical skills and skill. A team typically advantages from the manager’s skills, skills, aptitudes, insights and concepts. However, neither the management nor the team ought to ever forget that it’s the team’s responsibility to perform the particular work

12)   Why is it so hard for managers to internalize the sunk-cost concept when making decisions?

It is laborious for managers to interiorize the suck-cost thought as a result of sunk-cost area unit one-time expenses that can’t be recovered. Therefore, the sunk-cost area unit tangential to future choices as a result of they’re lost opportunities and may not create a control on the longer term success of the business