Synopses & Reviews
The insights you need to become a better decision-maker
Become a better decision-maker
How to overcome your biases and make better decisions
The tools to become a better decision-maker and a better manager
When faced with a decision, we all believe we’re weighing the facts objectively and making rational, thoughtful decisions. In fact, science tells us that in situations requiring careful judgment, every individual is influenced by his or her own biases to some extent. Drawing on the very latest behavioral decision research, Judgment in Managerial Decision Making, Seventh Edition examines judgment in a variety of managerial contexts and provides important insights that can help you make better managerial decisions.
Widely-recognized by practitioners and academics in fields ranging from behavioral finance to public policy, psychology, and economics, this Seventh Edition of the classic text:
- Discusses the motivational and emotional influences that effect decision making
- Delves into the fairness and ethics involved in the decision-making process
- Integrates numerous hands-on decision exercises and examples that will help readers enhance the quality of their managerial judgment
- Provides tips and techniques on how to make rational decisions during negotiations
- Presents seven critical strategies for improving decision making
For psychologists, the book outlines a systematic framework for using psychological findings to improve judgment. For the economist, the book suggests a critique of the classic economic model of decision making. Most of all, however, for every manager or financial decision maker, this book offers a clear path to better decisions.
In situations requiring careful judgment, every individual is influenced by their own biases to some extent. With Bazerman'snew 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.
Behavioral decision research has developed considerably over the past 25 years, and now provides important insights into managerial behavior. Bazerman & Moore’s Judgment in Managerial Decision Making, 7th edition
embeds behavioral decision research into the organizational realm by examining judgment in a variety of managerial contexts.
This book includes information that is useful for anyone seeking further information on improving his or her judgment and decision making. Throughout, you’ll find numerous hands-on decision exercises and examples from the author's extensive executive training experience that will help you improve the quality of your managerial judgment.
About the Author
Max H. Bazerman
is the Jesse Isidor Straus Professor of Business Administration at the Harvard Business School. In addition, Max is also formally affiliated with the Kennedy School of Government, the Psychology Department, and the Program on Negotiation at Harvard. He is the author or co-author of over 150 research articles and chapters, and the author of numerous other books. Professor Bazerman was named one of the top 30 authors, speakers, and teachers of management by Executive Excellence
in each of their two most recent rankings.
Don Moore is an Associate Professor of Organizational Behavior at Carnegie Mellon University¹s Tepper School of Business, and holder of the Carnegie Bosch Faculty Development chair. Don is also formally affiliated with CMU's Department of Social and Decision Sciences, and he is the founding director of the Center for Behavioral Decision Research. He received his Ph.D. in Organization Behavior from Northwestern University.
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.
Focalism and the Focusing Illusion.
Bounded Awareness in Groups.
Bounded Awareness in Strategic Settings.
Bounded Awareness in Auctions.
Chapter 4: Framing and the Reversals of Preference.
Framing and the Irrationality of the Sum of Our Choices.
We Like Certainty, Even Pseudocertainty.
The 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 Competitive Escalation Paradigm.
Why Does Escalation Occur?
Chapter 7: Fairness and Ethics in Decision Making.
Perceptions of Fairness.
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 Negotiation.
Anchoring in Negotiations.
Chapter 11: Improving Decision Making.
Strategy 1: Use Decision-Analysis Tools.
Strategy 2: Acquire Expertise.
Strategy 3: Debias Your Judgment.
Strategy 4: Reason Analogically.
Strategy 5: Take an Outsider's View.
Strategy 6: Understand Biases in Others.