...To extend and support the understanding of decision making when dealing with those traps, we also need to understand possible factors that play roles in decision making process. There could be four aspects backed up by 4 academic materials that might influence decision making. The first one is the mode of thinking. According to Hastie et al (2001), it suggests that there are two modes of thinking, System 1 thinking (intuitive) and System 2 thinking (analytical). It also argued that any kind of serious, complex thinking employs both analytical and intuitive thought. It explains System 1 thinking as relatively unconscious, relatively independent of language and generates a feeling of certitude. It is related to intuition and allows rapid, automatic decision-making. In contrast, System 2 thinking is controllable, conscious, rule-based, and is less characterised by feelings of certitude. It is commonly called analytic thinking. While System 2 thinking covers the higher level cognitive, attention-demanding, information processing activities that characterise much decision-making, it also notes that decision makers should aware that information processing under System 1 thinking may have far greater impact on judgements and choices. This brings us to the aspect of heuristic, Gigerenzer (2004) suggest that there are two common models of heuristics, recognition heuristics and social heuristics. It explains that Recognition heuristic builds on the human capacity for recognition...
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...Assessment 2: Peer decision analysis 12th October 2012 Australian catholic university Vo tuong vi nguyen In this paper, I will provide an account of decision problem in the workplace. This problem occurred in the restaurant where workers got conflicts during working hours. One of my peers, Lohnet Barton has introduced the final solution for the manager. From my own perspective, I will carefully explain the incident and analyses the way that Lohnet resolved the conflicts. Also; I will carefully do examination in the process that she took in order to decide which course of action that needs to follow. Besides, there will be an appropriate decision making strategy that was used as an effective tools in Lohnet decision making journey. To make it easier, I will begin by shortly giving the readers the whole picture of the situation that took place. It’s good to know that Steaky’s restaurant in the western suburb is a busy restaurant which has 8 staff members and 2 of that is waitresses. Linda is an outspoken employee who often argues with the male kitchen staffs about controversial topic such as abortion or gay marriage. Even sometimes the manager has noticed about the tension between her and the others staff, things seem go well. Unfortunately, One day after lunch time, the manager found a letter from Linda with vulgar language in which she criticized the male staffs and the worse management skills of the manager. She decided to quit the job and by the way asking for special condition...
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...& Taylor 2013) Social Cognition is concerned with how we think about the social world and in particular how we select, interpret, and use information to make judgements about the world. (Sanderson 2010) Sometimes there is unlimited information available for an individual to make a life decision. This makes it time consuming and complex, causing people to take shortcuts to make decisions/judgements. On the other hand, there might be very little data available for a person to make a judgement about someone or a life decision. This would also lead to people taking shortcuts in social cognition. While these shortcuts are helpful in many situations, they can also lead to many errors and biases. In 1974, Tversky and Kahneman detailed heuristics which are mental shortcuts that allow people to solve problems with limited data and make judgements quickly. Heuristics are integral in daily life to save time and reduce the complexity of operations. An example of a relatively simple heuristic is reading the headlines of a newspaper on a busy day and deciding which articles to read. (Fiske & Taylor 2013) There are various types of heuristics that include representativeness, availability and adjustment and anchoring heuristics and they all have their respective advantages and disadvantages. Representativeness heuristic generates inferences about probability. The social psychologist matches information about a specific event/instance from a general category to determine the likelihood...
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...experience information overload. To deal with complex information where the correct answer is not obvious, we make use of heuristics. (According to Robert A. Baron, Nyla R. Branscombe, Social Psychology, 13th ed. People often use mental shortcuts or rules to arrive at judgements). These judgements taken are known as Heuristics. The different types of heuristics help in making judgements of situations and people. Along with the heuristics there are other outlines that also play a part in perceptions and judgements of people, these are: Schemas and Automatic and controlled processing. In relation to the story of Victoria and the perceptions made by my friend and myself these outlines can be broken down in understanding how we came up with our impressions her. Heuristics Simple rules for making complex decisions or drawing inferences in a rapid manner and seemingly effortless manner. (Robert A. Baron, Nyla R. Branscombe, Social Psychology, 13th ed). In relation to the impression of Victoria taken by myself and my friend we both made came to conclusions at a rushed manner without getting acquainted with the subject. There are a number of heuristics that can be discussed in finding out how our perceptions were different. Representativeness Heuristic (Robert A. Baron, Nyla R. Branscombe, Social Psychology, 13th ed) defined it as being: A strategy for making judgements based on the extent to which current stimuli or events resemble other stimuli or categories. The more a person resembles...
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...Social cognition that is as defined in the title is about how individuals think about themselves and their social world; it involves how people make decisions and judgements in their everyday lives (Aroson et al., 2005). This is categorised as either automatic low effort thinking which is automatic or merely effort less or controlled high effort thinking that is controlled thinking processes. Social cognition assumes important roles such as decision making and perception of information in everyday life and therefore comprises of cognitive structures that influence and are influenced by the happenings in the social world. From this individual beings form shortcuts to ease the processing of information this is termed as being social misers towards a cognitive economy. This is due to a limitation in cognitive capacity and the existence of mental structural guides of cognition Examples of this shortcut is schemas. These categories simplify concepts. categorisation is done by grouping similar traits together that forms cognitive economy(Bruner et al.,1956) however it is not always that a common factor exist in a category this is known as the prototypical approach(Barsalou, 1991). Schemas and heuristics shape the categorisation process. This essay will look at schema and heuristics and examples of the same giving examples and evaluation for each. First this essay will look at schemas A schema can be defined as a packet of information containing fixed values and alternative values...
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...theory, originally coined by Hebert Simon surrounded the limitation of humans to process the amount of information available to make a logical, economic decision and the consumer would therefore, settle for something that satisfyingly sufficient, or ‘satisfice’(Simon 1955). Furthermore, the theory expanded over time to also include mans use of heuristics to simplify cognitive effort in the decision making process (Simon and Newell 1972) and it was argued that ‘logical and economic’ decisions were never reached by humans due to emotions and judgement controlling the decision making process and causing a range of biases and errors (Tversky and Kahneman 1986). The theory identified that humans would use these heuristics, such as rule of thumb or an estimation, to find something that is satisfactory to their needs rather than making the ideal economic decision. I agree with the notion that the world is ‘too complex for people to solve problems by employing strict logical rules and comprehensive thought processes’ (Simon 1955) and am also of the belief that humans will rely on heuristics to make the cognitive process more straightforward. Rational Consumer Choice Rational consumer choice theory has been around for many years and stems from the ideal that consumers act in a ‘rational’ fashion when making economic decisions. Not as complex as strict rationality, rational consumer choice considers some of the objections to the aforementioned theory and alters them accordingly...
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...relations, one is referring to types of behaviours which are exhibited by individuals after being in contact or interacting with people of various physical and cultural characteristics. (Balandier, 1956). Race relations debates have very prevalent in countries all over the world, South Africa being no exception. Due to the diverse nature of the county’s population, the topic of race relations still continues to dominate discourse in democratic South Africa. Since 1994, the citizens of South Africa have strived to eradicate racism and hostile racial relations. However, it has not been smooth sailing to move beyond racial lines as a source of division. In fact, the racial nuances still cling on stubbornly as race becomes a daily tormentor, making it very difficult to erode the edifices of racial and cultural hostilities. (Rajab, 2012). There are quite a number of issues which have contributed to the continuation of hostile racial relations. Such issues include social cognition and schemas, attribution, attitudes, prejudice and discrimination as well as social influence. These issues have impacted and continue to impact racial relations in various ways. The...
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...relations, one is referring to types of behaviours which are exhibited by individuals after being in contact or interacting with people of various physical and cultural characteristics. (Balandier, 1956). Race relations debates have very prevalent in countries all over the world, South Africa being no exception. Due to the diverse nature of the county’s population, the topic of race relations still continues to dominate discourse in democratic South Africa. Since 1994, the citizens of South Africa have strived to eradicate racism and hostile racial relations. However, it has not been smooth sailing to move beyond racial lines as a source of division. In fact, the racial nuances still cling on stubbornly as race becomes a daily tormentor, making it very difficult to erode the edifices of racial and cultural hostilities. (Rajab, 2012). There are quite a number of issues which have contributed to the continuation of hostile racial relations. Such issues include social cognition and schemas, attribution, attitudes, prejudice and discrimination as well as social influence. These issues have impacted and continue to impact racial relations in various ways. The...
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...Discuss some the factors which influence our thinking, judgement and decision-making Our everyday lives are filled with many choices and decisions which will impact on our lives both in the short and long-term. Our perception of the impact of these decisions on our own lives and those around us will affect how much time and effort is given to arriving at these decisions. There are several factors which impact on thinking, judgement and decision-making and it is important to note that often these occur simultaneously rather than as individual areas but in order fully understand the entire process we must analyse the factors in each individual area. While it is neither practicable or possible to consider all the factors in every decision, knowledge of the factors, process and how they interact can be of critical importance. By understanding the factors, we can ascertain how we make decisions and by gaining knowledge on the entire process, we can ultimately arrive at better decisions by being conscious of our thought and application process. How we think and apply our thought process to the decisions often determine the paths we choose to take. There are two systems, or modes, which determine how we think (Kahneman, 2011). The first system is fast, automatic, emotional and frequent and the second system is slow, logical, infrequent and conscious. The title of the Kahneman’s book, Thinking, Fast and Slow, gives us an indication of the two systems. The first system, thinking...
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...……………………………………… 2 2.2 What is 360 degree feedback intended to do? ……………………. 2 2.3.1 For individuals……………………………………………… 2 2.3.2 For organization ……………………………………………. 3 2. Analysing how heuristic, personality and social factors may affect the effectiveness of 360 degree feedback …………………………………. 3 2.1 Heuristic …………………………………………………………. 3 2.1.1 Confirmation ……………………………………………… 3 2.1.2 Representativeness ………………………………………… 4 2.2 Personalities ……………………………………………………. 4 2.2.1 Neuroticism ………………………………………………… 4 2.2.2 Conscientiousness …………………………………………. 5 2.3 Social Factors ………………………………………………….. 6 2.3.1 Interpersonal liking ………………………………………. 6 2.3.2 Referent power ……………………………………………… 6 3. References list ………………………………………………………. 7 1. Research 360 degree feedback 1.1 What is 360 degree feedback? 360 degree feedback is characterized as a multi-source feedback. Feedback comes from people, who work around with ratees, involving supervisors, colleagues, subordinates, internal and external customers as well as ratees. It is used in human resources management for different purposes such like decision making relating to rewards, performance evaluation, and employee development. Furthermore, it is valuable as it eliminates the shortcomings embedded in the traditional top-down and supervisor-only feedback, such as bias and...
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...Journal Six Confirmatory bias is the predisposition to emphasis on the evidence that endorses initial expectations or hypothesis. Counselors who have revealed confirmatory bias find proof that to support their hypotheses even in the face of greater quantities of contrary evidence (Ridley, 2005). In the case of David Lee, he was unquestionably under distress due to the problems that were happening in his life at that moment, in time. Counselors cannot perceive all evidence in front of them basically; nevertheless, they ignore the obvious and see what perceive to fit into their own understanding of that particular race or ethnicity. It was extremely peculiar not to have class on Tuesday, and I missed class, where we have these intense conversations....
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...People for Competitive Advantage in Asia Unit Schedule Meeting | Date* | Topic | Preparation | 1 | April 18 (Sat.) | * What is this unit about? * Whom do you manage? * What is evidence-based management? Why? How? * How to read a Harvard-style case? | Unit GuideBarends et al. (2014) | | | Managing self * What is the difference between a manager and a leader? * What is your personality? * How does personality affect job performance? * How do you influence others? Power, influence and political skills Introduction to Simulation: Judgement in Crisis | Get your Big-Five scores (Berkeley Lab)Case: Thomas Green | 2 | April 21 (Tue.) | Managing self: Individual decision making * Neuroscience and decision making * Heuristics * Cognitive biases * Debriefing to simulation exercise | Guest speaker: Prof. Alexandre Schaefer, Neuroscientist, Monash MalaysiaPress Release for Simulation: Judgement in Crisis (due on April 19, 12 mid-night) | 3 | April 28 (Tue.) | Developing others: Motivation * Needs theories * Process theories | The puzzle of motivation (Video). TedGlobal. http://www.ted.com/talks/dan_pink_on_motivation | 4 | May 5 (Tue.) | Developing others: Motivation * Applied performance practices * High performance work systems * The art of giving feedback | The delicate art of giving feedback (https://hbr.org/2013/03/the-delicate-art-of-giving-fee)Video case: Awkward Performance Review | 5 | May 12 (Tue.) | Developing others...
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...manager is making decisions. Decision is defined in this chapter as a choice made from among available alternatives. Decision making is the process of identifying and choosing alternatives courses of action. Managers should make logical and optimal decisions based on the rational model of decision making. The classical model assumes managers should make their decision in four stages. Stage 1: Identifying the problem or opportunity. A problem is a difficulty that inhibits the achievement of goals. An opportunity is a situation that presents possibilities for exceeding existing goals. This is a matter of diagnosis (analyzing the underlying causes). Stage 2: Thinking up alternative solutions. Stage 3: Evaluating the alternatives and selecting a solution. Alternatives should be evaluated according to cost, quality, ethics, feasibility, and effectiveness. Stage 4: Implementing and evaluating the solution chosen. The rational model of decision making assumes managers will make logical decisions that will be the optimum in furthering the organization's best interests. The rational model is prescriptive, describing how managers ought to make decisions. Non rational models of decision making assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum decisions. Three non rational models are satisficing (the ability of decision makers to be rational is limited by constraints like time and money), incremental (making small,...
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...Behavioural Finance Topic 10 What it is: * Relatively new and controversial area in the study of finance. * Orthodox finance theory is based on a representative agent that is a rational utility ‘maximiser’ who makes unbiased forecasts about the future. * BF expands the attributes allowed for this representative, replacing the ‘rational’ agent with a ‘normal’ person who is susceptible to a range of cognitive illusions. How and why it began: * The idea that psychological factors may play a role in financial markets, as opposed to mant theorist have always known that less than rational behaviour has been a dominating feature of markets. * This counter act the rational utility maximising representative agent. Dividends: the dividend policy could be completely irrelevant to its share price. This can be shown with an example that if firm A was to pay a large dividene then its retained earnings fall. However if B paid a larger amount then the retainbed earnings is correspondingly higher. Which ever way you go the if the capitalisation is the same than the market will force the price up on the larger dividend company. Trading Volumes: Orthodox models of financial markets imply that there should be little trading in financial assets. The reason for this is that in a world that is rational why would anyone be selling an asset unless they had some information to suggest that they should – and if so, why would anyone else want to buy? Of course, some trading will...
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...Reading 1.3 Jackall, R. (1988), Chapter 4, “Looking up and looking around”, in Moral Mazes, Oxford University Press, NY Abstract The heart of managerial system is the skills in making decision. The routine decisions are the main areas of managerial decision making. In bureaucratic setting, which is functional rationality, the managers are expected to follow the policy rather than create a new way of solving problem. Many managerial decisions usually base on procedure; however, if unusual problem occurs, the managers are expected to find the solution that satisfies their bosses. Managers have to face “gut decisions” when those decisions involve big influences to organizations and looking up and looking around are necessary in these situations. There are two perspectives of looking up and looking around. First aspect is uncertainty of organization and second one is bureaucratic work structure. Example from coking plant is shown to prove that decision making has an impact on advancement of company. American managers prefer short term gain, focusing on financial techniques and ignoring production management can help them success in short time. Structure of work (need rapid decision on piece by piece) is another aspect of short run. Managers think that they can only cope with short run issues to reach the long run goal. The most feared time in every firm is “blame time”. Blame is the action that attacks the person by verbal and it can make person less creditable. The different...
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