Judgement in Managerial Decision Making

Judgement in Managerial Decision Making

by Max H. Bazerman




In situations requiring careful judgment, every individual is influenced by their own biases to some extent. With Bazerman's new seventh edition, readers can quickly learn how to overcome those biases to make better managerial decisions. The book examines judgment in a variety of organizational contexts, and provides practical strategies for changing and improving decision-making processes so that they become part of one's permanent behavior.

Product Details

ISBN-13: 9780471896296
Publisher: Wiley, John & Sons, Incorporated
Publication date: 03/01/1986
Series: Management Series
Pages: 186
Product dimensions: 6.00(w) x 1.25(h) x 9.00(d)

Table of Contents

Chapter 1. Introduction to Managerial Decision Making.

The Anatomy of Decisions.

System 1 and System 2 Thinking.

The Bounds of Human Attention and Rationality.

Introduction to Judgmental Heuristics.

An Outline of Things to Come.

Chapter 2. Common Biases.

Biases Emanating from the Availability Heuristic.

Biases Emanating from the Representativeness Heuristic.

Biases Emanating from the Confirmation Heuristic.

Integration and Commentary.

Chapter 3. Bounded Awareness.

Inattentional Blindness.

Change Blindness.

Focalism and the Focusing Illusion.

Bounded Awareness in Groups.

Bounded Awareness in Strategic Settings.


Chapter 4. Framing and Reversals of Preference.

Framing and the Irrationality of the Sum of Our Choices.

We Like Certainty, Even Pseudocertainty.

Framing and the Overselling of Insurance.

What's It Worth to You?

The Value We Place on What We Own.

Mental Accounting.

Do No Harm, the Omission Bias, and the Status Quo.

Rebate/Bonus Framing.

Joint Versus Separate Preference Reversals.

Conclusion and Integration.

Chapter 5. Motivational and Emotional Influences on Decision Making.

When Emotion and Cognition Collide.

Positive Illusions.

Self-serving Reasoning.

Emotional Influences on Decision Making.


Chapter 6. The Escalation of Commitment.

The Unilateral Escalation Paradigm.

The CompetitiveEscalation Paradigm.

Why Does Escalation Occur?


Chapter 7. Fairness and Ethics in Decision Making.

Perceptions of Fairness.

When We Resist “Unfair” Ultimatums.

When We Are Concerned About the Outcomes of Others.

Why do Fairness Judgments Matter?

Bounded Ethicality.

Overclaiming Credit.

Ingroup Favoritism.

Discounting the Future.

Implicit Attitudes.

The Psychology of Conflict of Interest.

Indirectly Unethical Behavior.

When Values Seem Sacred.


Chapter 8. Common Investment Mistakes.

The Psychology of Poor Investment Decisions.

Active Trading.

Action Steps.


Chapter 9. Making Rational Decisions in Negotiation.

A Decision Analytic Approach to Negotiations.

Claiming Value in Negotiation.

Creating Value in Negotiation.

The Tools of Value Creation.

Summary and Critique.

Chapter 10. Negotiator Cognition.

The Mythical Fixed Pie of Negotiations.

The Framing of Negotiator Judgment.

Escalation of Conflict.

Overestimating Your Value in Negotiation.

Self-serving Biases in Negotiations.

Anchoring in Negotiations.


Chapter 11. Seven Strategies for Improving Decision Making.

Use Decision-Analysis Tools.

Acquire Experience and Expertise.

Debias Your Judgment.

Reason Analogically.

Take an Outsider's View.

Understand Biases in Others.




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