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.
Table of ContentsChapter 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.
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.
Do No Harm, the Omission Bias, and the Status Quo.
Joint Versus Separate Preference Reversals.
Conclusion and Integration.
Chapter 5. Motivational and Emotional Influences on Decision Making.
When Emotion and Cognition Collide.
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?
Discounting the Future.
The Psychology of Conflict of Interest.
Indirectly Unethical Behavior.
When Values Seem Sacred.
Chapter 8. Common Investment Mistakes.
The Psychology of Poor Investment Decisions.
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.
Take an Outsider's View.
Understand Biases in Others.