...The perpetuation of these stereotypes permeated the public perception of African American people and exacerbated the malformed biases that had already taken hold. These biases shaped public opinion, legal proceedings, and the criminal justice system in conjunction. According to the Harvard Library’s resource, “Criminal Justice”, “Some of the first organized “police forces” in the United States were slave patrols in the American South.” The modern criminal justice system, it is therefore evidenced, has its roots in the systematic oppression of African-Americans dating back to the 1600s. Eventually, despite great hardship, policies and laws that granted African Americans more rights began to be implemented, like Lincoln’s Emancipation Proclamation. However, many laws and restrictions that were counterintuitive to the progress being achieved were put in place with the intention of greatly limiting...
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...CONTE NTS Introduction 1 WHY YOU SHOULD VISIT CEMETERIES: Survivorship Bias 2 DOES HARVARD MAKE YOU SMARTER?: Swimmer’s Body Illusion 3 WHY YOU SEE SHAPES IN THE CLOUDS: Clustering Illusion 4 IF 50 MILLION PEOPLE SAY SOMETHING FOOLISH, IT IS STILL FOOLISH: Social Proof 5 WHY YOU SHOULD FORGET THE PAST: Sunk Cost Fallacy 6 DON’T ACCEPT FREE DRINKS: Reciprocity 7 BEWARE THE ‘SPECIAL CASE’: Confirmation Bias (Part 1) 8 MURDER YOUR DARLINGS: Confirmation Bias (Part 2) 9 DON’T BOW TO AUTHORITY: Authority Bias 10 LEAVE YOUR SUPERMODEL FRIENDS AT HOME: Contrast Effect 11 WHY WE PREFER A WRONG MAP TO NO MAP AT ALL: Availability Bias 12 WHY ‘NO PAIN, NO GAIN’ SHOULD SET ALARM BELLS RINGING: The It’llGet-Worse-Before-It-Gets-Better Fallacy 13 EVEN TRUE STORIES ARE FAIRYTALES: Story Bias 14 WHY YOU SHOULD KEEP A DIARY: Hindsight Bias 15 WHY YOU SYSTEMATICALLY OVERESTIMATE YOUR KNOWLEDGE AND ABILITIES: Overconfidence Effect 16 DON’T TAKE NEWS ANCHORS SERIOUSLY: Chauffeur Knowledge 17 YOU CONTROL LESS THAN YOU THINK: Illusion of Control 18 NEVER PAY YOUR LAWYER BY THE HOUR: Incentive Super-Response Tendency 19 THE DUBIOUS EFFICACY OF DOCTORS, CONSULTANTS AND PSYCHOTHERAPISTS: Regression to Mean 20 NEVER JUDGE A DECISION BY ITS OUTCOME: Outcome Bias 21 LESS IS MORE: The Paradox of Choice 22 YOU LIKE ME, YOU REALLY REALLY LIKE ME: Liking Bias 23 DON’T CLING TO THINGS: Endowment Effect 24 THE INEVITABILITY OF UNLIKELY Events: Coincidence 25 THE CALAMITY OF CONFORMITY: Groupthink 26 WHY...
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...Analysis for Case Jensen Shoes: Lyndon Brooks’ Story Are self-evaluations being hurt? Yes. This case gives us indications that Lyndon had negative core self-evaluations which are explained below: a. Self-esteem: Although not happy with this first assignment he decided to take it up so that it helped him broaden his background and move up in job roles by showing credibility. But he could not complete all his assignments in time. He was later told by Chuck that he would be moved to Strategic Product Marketing and would be reporting to Jane Kravitz as part of reorganizing. Lyndon took this change as the effect of his under-performance and had a feeling of being demoted. This looked like it hit his self-esteem as it gave him feeling of failing in his work and now he had to report to Jane while he himself was in line management before. b. Self-efficacy: In his first project he did believe in his capabilities to take on the project, but when he could not complete it, his work was not well appreciated by Chuck and was also moved to another project. This demotivated him and let him down. He thought he had failed. When he was again assigned the same market in his 2nd project he thought he will fail again in this project and his lack of knowledge of this market will add into the issue. He now did not have confidence in his capabilities and wanted to remain in his comfort zone of line management. c. Locus of control: He seems to display external locus of control as he believed...
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...Six Factors That Distort Performance Appraisals Multiple psychological factors can sway evaluators to rate employees a certain way. Most companies use performance appraisals, also known as job evaluations, to determine whether employees are meeting expectations, and to get some clues about how the employee could improve for the benefit of the business. Even so, performance appraisals have a major flaw in that they are not completely objective. Six major factors cause distortions in performance appraisals. 1. Stereotyping * People usually can fall into at least one general category based on physical or behavioral traits, and performance evaluators sometimes let stereotypes associated with those categories sway their employee appraisals. For example, a boss might assume that because many Asians excel, an Asian worker who doesn't meet a performance objective simply isn't working hard enough, even if the worker tried his best. Similarity * Often, people tend to seek out and rate more positively those who are similar to themselves. This tendency to approve of similarity may cause evaluators to give better ratings to employees who exhibit the same interests, work methods, points of view or standards. A major problem with this cause of distortion is that it can stifle innovation in a company, as "different" people must struggle to rise in the ranks. Leniency * Leniency, sometimes referred to as inflation, is the tendency of evaluators to give employees higher...
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...Running Head: LITERATURE REVIEW: HALO EFFECT 1 Literature Review: HALO EFFECT NO NAME GIVEN HERE Liberty University BUSI 600-B04 21 January 2013 LITERATURE REVIEW: HALO EFFECT Abstract 2 The term “Halo Effect” has several definitions. In conducting business research, it is important to understand which definition is to be used and apply that definition to the problem at hand. In this paper, we will attempt to define the correct version of the halo effect as it applies to this literature review. This paper will then look at the history of the halo effect in business and define how it is being used today. During the writing, examples and studies regarding the halo effect that have already been completed will also be reviewed to see if the halo effect can genuinely and repeatedly be used in business to increase profits or generate revenues. LITERATURE REVIEW: HALO EFFECT Literature Review: Halo Effect Introduction Definition When discussing and researching the term “Halo Effect” the various definitions of the 3 phrase must be reviewed. Once reviewed, the researcher then has the responsibility to determine which definition best fits their research question at hand in order to best formulate the research design and subsequent answer. One of the definitions of halo effect is from the textbook Business research methods by Donald Cooper. It is defined as “error caused when prior observations influence perceptions of current observations” (Cooper & Schindler...
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...The story is about a ski instructor named Miranda who is having several issues with her new boss, Hank because he has done and said many things over the course of the time that he has been there to show that he may be sexist. This scenario has a lot to do with perception. Perception is defined as “a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment” (Robbins & Judge, 166). This paper will discuss what perception is and how much of an impact in can have in the work place. Miranda’s perception of her boss Hank is that he is a sexist. The initial problem that is discussed is the fact that she did not like the fact that as one of the most experienced ski instructors at the resort but she was only being assigned to teach the children instead of the adults, the same for all the other female instructors. She sees how Hank separates the men and the women instructor to have a meeting about work procedure, “After introducing himself and Harika, he took the men to one room, and Harika took the women to another,” (Cohan, Fink,Gadon, Willits & Josefowitz, 2013). That was the first thing that bothered her because she could not understand what it is that had to be said to only the male instructors that could not also be said to the female. Although this bothered her initially, she decided to find a positive side to the situation, and went along with it. The more she went along with what was going around the job place...
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...Perception and Individual decision-making (Robertson) Perception Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. However, what we perceive can be substantially different from objective reality. People’s behaviour is based on their perception of what reality is, not reality itself. Factors that influence it Attribution theory The attribution theory is an attempt to determine whether an individual’s behaviour is internally or externally caused. Internally caused behaviours are those we believe to be under the personal control of the individual whereas externally caused behaviour is what we imagine the situation forced the individual to do. * Determinants of attribution 1. Distinctiveness: what we want to know is whether behaviour is unusual, if so we are likely to give it an external attribution. If not we will probably judge the behaviour to be internal. 2. Consensus: behaviour shows consensus when everyone who faces a similar situation responds in the same way. If consensus is high you will probably give an external attribution to the individual’s behaviour whereas if the consensus is low it will be attributed to an internal cause. 3. Consistency: does the person respond the say way over time? The more consistent the behaviour is the more we are inclined to attribute it to internal factors. ...
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...“Introspection Illusion” Introspection Illusion is defined as a cognitive bias in which people wrongly think they have direct insight into the origins of their mental states, while treating others' introspections as unreliable (Wikipedia). Introspection tends to be the evidence one receives about their self as they look to their own thoughts and feelings, and adding an illusion to this mix adds a misty fog that people look through as they look inward. In this paper I will attempt to show how Introspection Illusion affects us not only in our day to day lives, but how it can also have a major impact on our financial decisions. Introspection Illusion was first defined by Emily Pronin. She observed how people viewed their selves and how aware they were of their motives, thoughts and feelings. This awareness, however, is often weak and unreliable. Eric Schwitzgebel argues this case by stating that “introspection is unreliable in the sense that we are prone to ignorance and error in making introspective judgments about our own conscious experience,” (Smithies). In this sense, our inner motives, thoughts and feelings are strictly biased based on our limited understanding of the world surrounding and with little thought to the personal introspections of others around us. So why then do we rely so much on our introspection? Pronin claims that it is because they are intimate and comfortable, which makes it easy and safe to believe in the classic statement of “I think therefore I am...
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...on the investment staff of a family office. Pompian is a Chartered Financial Analyst (CFA), a Certified Financial Planner (CFP), and a Certified Trust Financial Advisor (CTFA). He is also a member of the CFA Institute (formerly AIMR) and the New York Society of Security Analysts (NYSSA). He holds a BS in management from the University of New Hampshire and an MBA in finance from Tulane University. Pompian is a regular speaker on the subject of behavioral finance and has published several articles on the subject. He is married with three sons and can be reached at michael.pompian@mercer.com. “ Michael M. Pompian describes various biases which we can see in human beings , also tells about various experiments on human beings in his book “ BEHAVIOURAL FINANCE AND WEALTH MANAGEMENT “ and tells “HOW TO BUILD OPTIMAL PORTFOLIOS THAT ACCOUNTS FOR INVESTOR BIASES “ The book is published by John wiley and sons, inc. ,Hoboken , New jersey. Published simultaneously in Canada. The book was published in the year 2006 . SUMMARY : Understanding the use of behavioral finance theory in investing is a important topic these days. Nobel laureate Daniel Kahneman has described financial advising as a prescriptive activity whose main objective should be to guide investors to...
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...CORPORATE FINANCE HONOURS 2011-2012 Topic: Behavioural corporate finance Lecturer: Yue (Lucy) Liu E-mail: Yue.Liu@ed.ac.uk Outline Psychological phenomena Biases Heuristics Framing effects Impact on corporate finance Valuation Capital Budgeting Capital structure Dividend policy Mergers and acquisitions Yue (Lucy) Liu 2011/2012 Corporate Finance 2 Psychological phenomena Bias Excessive optimism Overconfidence Confirmation bias Illusion of control Heuristics Representativeness Availability Anchoring and adjustment Affect Heuristic Framing effects Loss aversion Aversion to a sure loss Yue (Lucy) Liu 2011/2012 Corporate Finance 3 Biases Bias A predisposition toward error. – Excessive optimism People overestimate how frequently they will experience favorable outcomes and underestimate how frequently they will experience unfavorable outcomes. – Overconfidence People make mistakes more frequently than they believe and view themselves as better than average. – Confirmation bias People attach too much importance to information that supports their views relative to information that runs counter to their views. – Illusion of control People overestimate the extent to which they can control events. Yue (Lucy) Liu 2011/2012 Corporate Finance 4 Heuristics Heuristic A rule of thumb used to make a decision. – Representativeness People make judgments based on stereotypic thinking, asking how representative...
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...Job satisfaction is one of the most important work attitudes in organizational behavior, and the important issue for workers in organizations. The determinants of job satisfaction are pay, promotion opportunities, supervision, coworkers, and the work itself. There is many factor are affecting its levels. First of all ,the work situation is the main factor determinant of job satisfaction .the most notable situational influence on job satisfaction is the nature of the work itself, which includes job challenges, autonomy, variety and scope, the another component of any work situation is pay. Pay is therefore an obvious sources of job satisfaction (or dissatisfaction), however, people will sometimes take lower-paying job with meet needs they might have. Job promotion is the other factor to impact on the satisfaction levels , A promotion implies higher pay and recognition for work well done, and is an indication of status and regard. Supervisors who may earn less than their subordinates, which sometimes happens because subordinates are paid overtime or bonuses which are not paid to management are often understandably dissatisfied. Besides, the superior-subordinate relationship, in addition to the relationship coworkers, also has an important influence on job satisfaction in the workplace, The way in which an employee perceives a supervisor’s or coworker’s behavior can positively or negatively influence job satisfaction. Mood and emotions form the affective element of...
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...The 12 cognitive biases that prevent you from being rational George Dvorsky The human brain is capable of 1016 processes per second, which makes it far more powerful than any computer currently in existence. But that doesn't mean our brains don't have major limitations. The lowly calculator can do math thousands of times better than we can, and our memories are often less than useless — plus, we're subject to cognitive biases, those annoying glitches in our thinking that cause us to make questionable decisions and reach erroneous conclusions. Here are a dozen of the most common and pernicious cognitive biases that you need to know about. Before we start, it's important to distinguish between cognitive biases and logical fallacies. A logical fallacy is an error in logical argumentation (e.g. ad hominem attacks, slippery slopes, circular arguments, appeal to force, etc.). A cognitive bias, on the other hand, is a genuine deficiency or limitation in our thinking — a flaw in judgment that arises from errors of memory, social attribution, and miscalculations (such as statistical errors or a false sense of probability). Some social psychologists believe our cognitive biases help us process information more efficiently, especially in dangerous situations. Still, they lead us to make grave mistakes. We may be prone to such errors in judgment, but at least we can be aware of them. Here are some important ones to keep in mind. Confirmation Bias We love to agree with people who...
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...Chapter 5 – Social Cognition Debate: Faith and Social Cognition * Carolyn Briggs: involved in and then rejected. Christian fundamentalism. How can someone believe so intensely and then reject those same beliefs? How are our beleifs shaped by those around us? Consider some cognitive biases and errors you have made. **Social cognition: Study of how people think about people and social relationships. -What is unique about thinking about people as opposed to thinking about something else, like frogs or computers? Why is it important to study how people think about people? -How is argumentative thinking helpful? Why would arguing with others help with human survival? **Thinking Cognitive Miser: Exemplified by having errors in thinking. Reluctance to do much extra thinking. -During free time, why do most people choose to think about a subject such as baseball, but not about a subject such as calculus? **Automatic and deliberate thinking How does the Stroop Effect (colors and words) illustrate automatic versus deliberate thought? How do we know if a thought is automatic? -Requires no awareness -not guided by intention -not subject to deliberate control -effort is low Schemas: information about a concept. Ex/Schema for exams = involves multi paged paper and #2 pencil. Scripts: Schemas about certain events. How an experience and an event will play out. Ex/ For exam… come into class, cram before instructor says put materials away, administered exam...
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...Analysis for Case 2 Jensen Shoes: Lyndon Brooks’ Story Are self-evaluations being hurt? Yes. This case gives us indications that Lyndon had negative core self-evaluations which are explained below: a. Self-esteem: Although not happy with this first assignment he decided to take it up so that it helped him broaden his background and move up in job roles by showing credibility. But he could not complete all his assignments in time. He was later told by Chuck that he would be moved to Strategic Product Marketing and would be reporting to Jane Kravitz as part of reorganizing. Lyndon took this change as the effect of his under-performance and had a feeling of being demoted. This looked like it hit his self-esteem as it gave him feeling of failing in his work and now he had to report to Jane while he himself was in line management before. b. Self-efficacy: In his first project he did believe in his capabilities to take on the project, but when he could not complete it, his work was not well appreciated by Chuck and was also moved to another project. This demotivated him and let him down. He thought he had failed. When he was again assigned the same market in his 2nd project he thought he will fail again in this project and his lack of knowledge of this market will add into the issue. He now did not have confidence in his capabilities and wanted to remain in his comfort zone of line management. c. Locus of control: He seems to display external locus of control as he believed...
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...Lynise Harris February 19,2015 Soc. Psyc Seven Floors The story Seven Floors by Dino Buzzati, Focused on a lawyer named Giovanni Corte stay at a well known nursing home for what was described as a slight sickness. Mr. Corte arrived at the hospital for treatment for early stages of is unknown sickness with hopes of getting better. His first impression of the place seemed to be to his liking, Givoni was pleased with the appearance of the nice rooms, attractive nurses and even interested in the knowledgeable doctors. Shortly after arriving at the sanatorium he found out the placing of the patients depended on their health state. This new information caused him to become obsessed with his placement and eventually began to effect his health. The concept that become clear while reading was that negative thinking will produce a negative effect. A concept can be used to help understand the main purpose of something or to help explain it. An example of a concept in the story that stood out was the hindsight bias. The hindsight bias is the tendency to exaggerate after learning an outcome. On page 4 in the beginning of the third paragraph, Givoni was asked to move to a different room due to a mother needing to be near her children and he graciously agreed. After agreeing the head nurse stated, “ such courageous act doesn’t surprise me coming from a person like yourself.” The nurse acted as though he expected Givoni to say yes but only knew this after the fact. The way the...
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