Tag: Corporate Finance & Strategic Management

  • [Solved] DISCUSSION

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) – 2 years ago **files (1)** – ## WHATTODODISCUSSION.docx **## WHATTODODISCUSSION.docx** t will be helpful to read pp. 604-609 in _Back to the Lake_ and the Powerpoint notes in the "Notes: Argument and Persuasi…

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    – 2 years ago

    **files (1)**

    – ## WHATTODODISCUSSION.docx

    **## WHATTODODISCUSSION.docx**

    t will be helpful to read pp. 604-609 in
    _Back to the Lake_ and the Powerpoint notes in the "Notes: Argument and Persuasion" page before you begin.

    Go to
    _CQ Researcher_ and find the article "The Value of a College Education" by Thomas Billitteri.  Go to the “Pro/Con” section of the article.  The question presented here is, “Should college preparatory and career-training programs get equal priority?” Read both sides and answer the following questions.

    1. Who are the two men each presenting their claim? What are their qualifications?

    2. What does plausible mean? (Find the answer in the PowerPoint notes in the "Notes: Argument and Persuasion" page; do not google the answer. The google answer will be marked wrong.)

    (a) Is the Pro claim plausible? Why or why not?

    (b) Is the Con claim plausible?  Why or why not?

    (c) With which claim do you agree?  Why?  (Note that it is possible to see both claims as plausible, and to see a claim as plausible with which you do not personally agree.)

    3. Are these two claims rooted more in argument or persuasion? Explain.  (
    Do not guess.  Refer to p. 605 in
    _Back to the Lake_ or to the Powerpoint notes in the module to learn the difference between the two.  This question is not a matter of opinion; there is a right and wrong answer.)

    4. Find an example of each of the following. Examples may come from either or both essays.

    (a) Fact

    (b) Statistic

    (c) Example

    (d) Personal experience

    5. Looking at either argument, which piece of evidence did you find to be (a) the strongest? Why? (b) the weakest?  Why?

    6. Think of evidence that you could add to one of the claims to make it stronger. What would it be?  Why? (3-4 sentences minimum to receive any credit.)

    ![A screenshot of a paper Description automatically generated](https://www.sweetstudy.com/questions/discussion-20873921)

    ![A screenshot of a screenshot of a computer Description automatically generated](https://www.sweetstudy.com/questions/discussion-20873921)

    ![A screenshot of a paper Description automatically generated](https://www.sweetstudy.com/questions/discussion-20873921)

    ## image1.png

    ## image2.png

    ## image3.png

    **## WHATTODODISCUSSION.docx**

    t will be helpful to read pp. 604-609 in
    _Back to the Lake_ and the Powerpoint notes in the "Notes: Argument and Persuasion" page before you begin.

    Go to
    _CQ Researcher_ and find the article "The Value of a College Education" by Thomas Billitteri.  Go to the “Pro/Con” section of the article.  The question presented here is, “Should college preparatory and career-training programs get equal priority?” Read both sides and answer the following questions.

    1. Who are the two men each presenting their claim? What are their qualifications?

    2. What does plausible mean? (Find the answer in the PowerPoint notes in the "Notes: Argument and Persuasion" page; do not google the answer. The google answer will be marked wrong.)

    (a) Is the Pro claim plausible? Why or why not?

    (b) Is the Con claim plausible?  Why or why not?

    (c) With which claim do you agree?  Why?  (Note that it is possible to see both claims as plausible, and to see a claim as plausible with which you do not personally agree.)

    3. Are these two claims rooted more in argument or persuasion? Explain.  (
    Do not guess.  Refer to p. 605 in
    _Back to the Lake_ or to the Powerpoint notes in the module to learn the difference between the two.  This question is not a matter of opinion; there is a right and wrong answer.)

    4. Find an example of each of the following. Examples may come from either or both essays.

    (a) Fact

    (b) Statistic

    (c) Example

    (d) Personal experience

    5. Looking at either argument, which piece of evidence did you find to be (a) the strongest? Why? (b) the weakest?  Why?

    6. Think of evidence that you could add to one of the claims to make it stronger. What would it be?  Why? (3-4 sentences minimum to receive any credit.)

    ![A screenshot of a paper Description automatically generated](https://www.sweetstudy.com/questions/discussion-20873921)

    ![A screenshot of a screenshot of a computer Description automatically generated](https://www.sweetstudy.com/questions/discussion-20873921)

    ![A screenshot of a paper Description automatically generated](https://www.sweetstudy.com/questions/discussion-20873921)

    ## image1.png

    ## image2.png

    ## image3.png

  • [Solved] Leadership Evaluation

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) Leadership studies demonstrate that the most effective leaders know how to draw upon self-leadership skills to in turn motivate and lead others to expand their strengths to ultimately better serve the goals of…

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    Leadership studies demonstrate that the most effective leaders know how to draw upon self-leadership skills to in turn motivate and lead others to expand their strengths to ultimately better serve the goals of an organization. For this assignment, you will continue to study conscious leadership and look at a leadership example from contemporary media and evaluate how well the particular leader exemplifies the qualities of effective and ethical conscious leadership.

    Select a relevant and topical leadership issue from current news media that revolves around ethics and ethical decision-making. Research the situation and gather information in order to evaluate the leader. Keep in mind, the issue that you choose will serve as the backdrop for your evaluation while using the key terms and concepts covered in your course readings.

    – The power bases used by the leader.
    – The influence tactics used by the leader.
    – The leadership style of the leader.
    – The outcome (or potential outcome) of the situation.

    – 2 years ago

  • [Solved] journal

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) see attached – 2 years ago **files (2)** – ## UnitIVstudyguide.pdf – instructions.PNG **## UnitIVstudyguide.pdf** MGT 3303, Managerial Decision Making 1 Course Learning Outcomes for Unit IV Upon completion of …

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    see attached

    – 2 years ago

    **files (2)**

    – ## UnitIVstudyguide.pdf

    – instructions.PNG

    **## UnitIVstudyguide.pdf**

    MGT 3303, Managerial Decision Making 1

    Course Learning Outcomes for Unit IV

    Upon completion of this unit, students should be able to:

    3. Explore the psychological aspects of decision-making.
    3.1 Describe the competitive escalation paradigm.
    3.2 Explain how to avoid escalation of commitment in a decision-making scenario.

    5. Explain how motivation and emotion impact managerial decision-making.
    5.1 Analyze how motivation and emotion influence decision-making.
    5.2 Illustrate how to minimize the effects of motivation and emotion on the decision-making process

    of a current company.
    5.3 Exemplify what happens when emotions collide with cognition.

    Reading Assignment

    Chapter 6: Motivational and Emotional Influences on Decision Making

    Chapter 7: The Escalation of Commitment

    Unit Lesson

    Nonrational Decision-Making

    The emotional aspects of decision-making have been left out of the discussion so far. These aspects are not
    rational in the sense that they do not rely on logic or objectivity, but emotions are still important influences in
    the choices we make. One common element is risk tolerance or how well you handle uncertainty. For
    example, choosing to join a start-up may promise a big upside reward when compensation comes in the form
    of stock options that become valuable when the company is acquired. However, that comes at the cost of
    lower cash compensation with no certainty of higher reward; there is the risk that the company will fail to find
    a market for its goods or services and go out of business, rendering the stock options worthless.

    Your willingness to take on some risk will shape your decision. Other emotions can come into play. For
    instance, you may want to be close to friends and family or work for a company that gives you a sense of
    status or prestige. There may even be an emotional component to the criteria you have used (e.g., how you
    will feel about yourself if you accept a job at a company that pays more than the others even though you do
    not agree with some of its business practices).

    You also have to approach decisions knowing that you do not always have full and accurate information. That
    does not mean you should choose based on assumptions or instinct but, rather, that it is not possible to have
    confidence that you have perfect information—only the best that is available at the time of the decision. You
    cannot fully know what it is like to work at a job until you have actually done so. People can tell you what it is
    like, but you may perceive it differently. In that sense, the information you based your analysis on was limited
    by what was knowable; some things are only learned through experience.

    The ability to make decisions can improve as you are given more opportunities to make decisions. Stating
    goals, identifying alternatives and criteria, analyzing those alternatives, and finally making a choice all rely on
    a mix of skills, aptitudes, and heuristics that enable us to make sense of the options. These can be developed
    over time to improve your judgment and ability to make the right decision.

    UNIT IV STUDY GUIDE
    Motivation, Emotion, and Commitment
    in Decision-Making

    MGT 3303, Managerial Decision Making 2

    UNIT x STUDY GUIDE
    Title

    Motivation and Emotions in Decision-Making

    The textbook gives some illustrations; one is called the footbridge dilemma, and the other is called the trolley
    dilemma. It outlines several different scenarios where you must decide to push one person off the bridge or
    pull a switch in order to save five people. It is quite interesting to read about how your emotions play into your
    decision. These examples lead to the explanation of two approaches to this type of decision-making. One is
    the utilitarian approach, which states that you should do what is good for the largest number of people. The
    other is called the deontological approach, which says that you should use your judgment in decision-making
    based on morals and beliefs that adhere to rules and duties in your society (Bazerman & Moore, 2013).

    People’s emotions come into play and are a major
    factor in these scenarios. On one hand, you could
    argue it is better to kill one person to save five
    people. On the other hand, is it right for you to kill
    a person no matter what may happen to the other
    five people? As you study the examples, you will
    see that sometimes we follow our emotions and
    sometimes we do not; we may not apply our
    emotions in the decision-making process in a
    manner we might have chosen if we had longer to
    think about the decision. Because of temporary
    emotions or motivations (e.g., addiction, hunger,
    sexual stimulus), we may make impulse or
    inconsistent decisions that are not congruent with
    our long-term best interest.

    We will address three ways that emotions and
    motivation affect our decisions. First, we will
    discuss the dilemma of doing what we want to do
    versus doing what we should do. Second, we will
    discuss fairness perspectives that lead to self-
    serving decisions. Third, we will discuss how
    emotions influence our judgment (Bazerman &
    Moore, 2013).

    When Emotions and Cognition Collide

    We have studied heuristics and how we automatically make decisions without much thought. In this unit, we
    will add strength to that theory by discussing the multiple-selves theory and the battle between our want self
    and our should self. These theories tie directly to the System 1 thinking and System 2 thinking covered
    previously. Some people constantly battle with their choices for food and exercise. The want self tells them to
    eat a large ribeye steak, potatoes with gravy, bread, a second helping of potatoes, and then a large helping of
    blueberry crunch for dessert. The should self says, “Wait a minute; slowly eat a small piece of steak, green
    beans, salad with a tablespoon of dressing, a small scoop of dessert, and no second helpings.” The want self
    says they can skip the exercise today and start back tomorrow. The should self says take a brisk 30-minute
    walk, stretch, do push-ups, and then lift weights for 15 minutes. Which self wins? They both do at times. The
    more a person puts controls in place to limit the want self and encourage the should self, the more successful
    he or she will be at doing the things that should be done. Many people battle with finances (e.g., spending
    needlessly and saving little). If we would put controls in place to limit credit cards, pay off balances every
    month, as well as have an automatic deduction for 401(k)s and savings, we would spend less and save more.

    Click here for an exercise about the multiple-selves theory. Be sure you have reviewed Chapter 6 before
    taking this quiz.

    Another concept we need to understand is referred to as discounting (Bazerman & Moore, 2013). The choices
    you make are a tradeoff between now and sometime in the future; therefore, the future choice should be
    discounted to some degree based on time (how far away the result of the choice is). Exponential discounting
    means discounting the same percentage for each future period. Hyperbolic discounting compares everything
    to the current time, and all future gains or losses are worth less than they are right now. These theories

    In the trolley dilemma, a person has to decide whether to pull a
    lever that would kill one person to save five other people. What
    would you do?
    (Backer, n.d.)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149458066_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149458066_1)

    MGT 3303, Managerial Decision Making 3

    UNIT x STUDY GUIDE
    Title

    support that we are biased toward the present (Bazerman & Moore, 2013). They also support that when we
    make decisions about the future, our focus is on what we should do, but when we make decisions about
    today, we are more likely to do what we want to do.

    These differences between decisions made at different times (present versus future) go back to the vividness
    of events in the present that we discussed in Unit III. Earlier we discussed that our brains are activated in a
    different area for immediate reward than for a delayed reward. The result is that our brain dramatically
    overweighs the present reward and neglects the good that could result from the delayed reward. An example
    would be to buy a new car or keep the current one a few more years. A new car is great for looks, comfort,
    and features, but what about the higher payment and spent savings? An ice cream would really be a sweet-
    tasting splurge, but what about the potential weight gain or extra gym time or the increase in cholesterol or
    sugar levels? Most people find it hard to override the present reward and wait for the future, or delayed,
    reward.

    In 2008, the world experienced a financial crisis when the U.S. housing market crashed. This was a classic
    example of the tendency to overly discount the future value of mortgages. None of the responsible parties
    (borrowers, lenders, or politicians) anticipated the consequences of the short-term decisions that were made.
    What we need to learn from this want versus should self-awareness is to control our destructive impulses in
    short-term decisions. We should use our should self to plan and develop schemes in advance to control the
    want self. We need to have inflexible pre-commitment routines or plans in place that will make us effective
    decision makers. We need to acknowledge that we have internal inconsistencies, and the two competing
    selves cannot both be good for us (Bazerman & Moore, 2013). Set a date or time for when you should make a
    new car purchase unless you have a major breakdown or wreck. Establish periods to wait in between ice
    cream cone splurges, and stick to them. Simple but consistent strategies will result in more long-term
    benefits.

    We all have self-serving reasoning that biases our decisions. When we studied the confirmation heuristic in
    Unit II, we learned that when we receive information that is favorable, we accept it more readily. If we receive
    unfavorable or negative information, we are much more critical in our evaluation process of that information.
    Very smart and well-meaning people make biased decisions every day while they continue to believe that
    they are being fair and objective in their decision-making. They also feel and believe they are being ethical in
    their decision-making. For their behavior to be legally unethical, they must knowingly engage in unethical or
    criminal behavior (Bazerman & Moore, 2013).

    Emotional Influences on Decision-Making

    Some theories suggest that when we are in a good mood, we rely more heavily on heuristics, which results in
    System 1 thinking and, therefore, making more biased decisions. When we are in a bad mood, we tend to
    move toward System 2 thinking and are more deliberate, using our judgment in our decisions with less bias.
    The textbook argues that there is too much evidence to the contrary and that this is not true (Bazerman &
    Moore, 2013).

    Basic emotions such as happiness, sadness, fear, disgust, and anger are the same in every culture. These
    basic emotions activate stimuli in us that prepare us to respond in a certain way. Fear stimuli prepare us to
    flee. Disgust stimuli prepare us to purge. Sadness causes a focus on self. Anger stimulates us in a variety of
    ways including increasing confidence and decreasing risk sensitivity. Other emotions associated with our
    social characteristics include compassion and pride. These are more complex but are still associated with a
    particular mindset (Bazerman & Moore, 2013). All of these emotions can affect our mindset. For more
    information on this topic, watch the following short video.

    BBC Worldwide Learning. (2015, November 24). The importance of emotions in decision making and

    personality [Video].
    http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AON
    E?u=oran95108&sid=AONE&xid=a564b1e6

    Click here for a transcript of this video.

    One’s emotional state can play a part in the endowment effect, which states that the value of something is
    higher if you own it (Bazerman & Moore, 2013). If you are not careful, emotions can negatively affect financial

    [http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6](http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6)

    [http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6](http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149461561_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149461561_1)

    MGT 3303, Managerial Decision Making 4

    UNIT x STUDY GUIDE
    Title

    decisions. Our perception of risk is tied to our emotions. The happier we are, the more optimistic we are. If we
    are sad, then we tend to be more pessimistic. Fear and anxiety can create risk-averse behavior, and anger
    can create risk-acceptance behavior.

    Weather has an influence on the mood and perceptions of a person. Cloudy days versus sunny days make a
    difference in how happy a person feels. Our swings in mood are because of the same mental processes that
    cause the confirmation heuristic studied in Unit II (Bazerman & Moore, 2013). We are better at remembering
    information that is consistent with our mindset than we are with remembering information that is inconsistent
    with our mindset. The anticipation of regret can drive our behaviors through emotions as well. Even if we
    cannot stop ourselves from feeling, we can limit how much we let our emotions affect us negatively and in the
    decisions we make.

    We sometimes are unaware of the influence of emotions in our decision-making. When we are angry, it is
    best to pause before making what could be irrational decisions based in our anger. Being aware of our
    emotional state is the key to controlling how our emotions can affect our judgment and bias our decisions. If
    we identify our emotions and their sources, we have a better chance of neutralizing their effects. An additional
    strategy for managing the negative impact of emotions in decision-making is assigning accountability to
    decision makers. If decision makers have to justify their decisions and be held accountable, they are more
    likely to use a rational approach (System 2 thinking) in the decision-making process and less likely to let
    emotions control the process (System 1 thinking) (Bazerman & Moore, 2013). Even though it is difficult to
    control our emotions, if we understand how they can influence our decisions, we can improve the process of
    decision-making.

    Motivation and the Escalation of Commitment

    We will now focus on a series of choices rather than a single choice. Most critical managerial decisions are
    the result of a series of choices. A particular type of bias associated with a series of choices is referred to as
    an escalation of commitment bias (Bazerman & Moore, 2013). This bias suggests that we have a tendency to
    escalate our commitment to our initial decision. Once we have made a decision, we will have to make other
    decisions related to our initial decision. Each subsequent decision supporting our initial decision means we
    have invested more time and energy based on our first decision. Now, we are vested in our initial decision.
    Therefore, if the initial decision was a bad decision, we may still have a tendency to justify our initial decision
    and look for supporting or confirming evidence that the decision will eventually be a good one. Inertia pushes
    us to continue on course because we feel we have too much invested to quit.

    Is it irrational to continue on the same course of action when evidence shows otherwise? We have to know
    when to quit. Persistence can lead to substantial rewards, but it can also lead to wasted time, energy,
    resources, and money. We need to hone our abilities so we can better determine which situations will payoff
    versus those that will not. In order to do so, we need to be able to understand that nonrational escalation
    (commitment to a course of action beyond a point that a rational model would pursue) has to be stopped. We
    have to realize that everything invested so far is considered a sunk cost and is not recoverable (Bazerman &
    Moore, 2013). These costs should not be considered for future decision-making. We should now only be
    evaluating the future costs and benefits of the alternative actions necessary for the best long-term
    commitments.

    The primary reason for escalation is self-justification. Once we make an initial decision on a course of action,
    anything negative is feedback that we do not want to hear. We tend to escalate our commitment to the initial
    decision by highlighting the positive feedback and ignoring the negative feedback while hoping that this action
    will lead to success. Individuals are more likely to escalate commitment than groups, but groups will escalate
    to a greater degree than individuals (Bazerman & Moore, 2013). It is important that managers be aware of the
    difficulty of separating initial decisions from future decisions. Managers should take steps to prevent
    nonrational escalation of commitment by providing a separation of duties for subsequent decisions or
    assigning different individuals or groups to evaluate future decisions that are based on the initial decision.

    MGT 3303, Managerial Decision Making 5

    UNIT x STUDY GUIDE
    Title

    In the previous paragraphs, we discussed
    unilateral escalation, which is associated with
    an individual or group decision. Now we turn to
    competitive escalation, which is caused by
    competition between individuals or groups.
    Competition feeds the escalation process
    (Bazerman & Moore, 2013). A strategy to
    identify competitive traps is to consider the
    perspective of the other decision makers and to
    try to accurately predict their decisions. Another
    strategy is to collude with the other decision
    makers to create win-win situations for all.
    Communication is the key to this success. In a

    competitive situation, if we fail to see the perspective of others in the decision-making process, it can lead to
    financial loss. In a competitive situation, we somehow forget that our original objective was to make money,
    but our competitive spirit can change our objective to winning (which means beating the other decision
    makers). Our desire to win serves as an additional motivation.

    Psychological factors feed nonrational escalation in our decisions. One of the first steps to prevent that is to
    identify those factors. If you remember in Unit I, we discussed that we have a tendency to pay closer attention
    to confirming information than disconfirming information. We also discussed how we protect our initial
    decisions by seeking out supporting information about those decisions. Since we have chosen a particular
    path, we will then selectively filter information so we can maintain our commitment to that path. To offset our
    tendencies, we need to vigilantly search for disconfirming information to counterbalance the confirming
    information we intuitively seek (Bazerman & Moore, 2013). This is especially true in serial decisions where we
    have a natural tendency toward escalation. We also need to establish monitoring systems that help us keep a
    proper perspective and put a check on our perceptions when making a decision. A good way to do that is to
    seek an outside opinion to evaluate the alternatives to make sure we are not filtering out disconfirming
    information. This will help us reduce or eliminate our escalatory behavior.

    Another factor in escalation is considered as saving face. We may stick to a bad decision because we fear the
    opinions that others may have of us. We think that others will think badly of us for changing our minds or not
    sticking to our decisions. The key here is to make the best decision for the future, regardless of the decisions
    made in the past. We have already talked about sunk costs. Our focus should be our future costs and
    benefits. Businesses need to develop systems that reward good decisions, not decisions that foster status
    quo or nonrational decision-making. They should also constantly reassess the rationality of future
    commitments and learn to identify and address failed strategies in the early stages (Bazerman & Moore,
    2013). This strategy can be accomplished if they keep motivations, emotions, and commitment in proper
    perspective.

    Click here to test your knowledge of concepts learned in this unit. Be sure you have reviewed Chapters 6 and
    7 before taking this quiz.

    References

    Bazerman, M. H., & Moore, D. A. (2013). Judgment in managerial decision making (8th ed.). Wiley.

    Backer, K. (n.d.). Yellow electric streetcar on tracks [Image]. Dreamstime. http://www.dreamstime.com

    Flynt. (2013, August 1). Business competition tug of war [Photograph]. Dreamstime.

    http://www.dreamstime.com

    Competition adds to the escalation process.
    (Flynt, 2013)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149458237_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149458237_1)

    **instructions.PNG**

    This file is too large to display. [View in new window](https://www.sweetstudy.com/files/instructions-png-10147283)

    **instructions.PNG**

    This file is too large to display. [View in new window](https://www.sweetstudy.com/files/instructions-png-10147283)

    **## UnitIVstudyguide.pdf**

    MGT 3303, Managerial Decision Making 1

    Course Learning Outcomes for Unit IV

    Upon completion of this unit, students should be able to:

    3. Explore the psychological aspects of decision-making.
    3.1 Describe the competitive escalation paradigm.
    3.2 Explain how to avoid escalation of commitment in a decision-making scenario.

    5. Explain how motivation and emotion impact managerial decision-making.
    5.1 Analyze how motivation and emotion influence decision-making.
    5.2 Illustrate how to minimize the effects of motivation and emotion on the decision-making process

    of a current company.
    5.3 Exemplify what happens when emotions collide with cognition.

    Reading Assignment

    Chapter 6: Motivational and Emotional Influences on Decision Making

    Chapter 7: The Escalation of Commitment

    Unit Lesson

    Nonrational Decision-Making

    The emotional aspects of decision-making have been left out of the discussion so far. These aspects are not
    rational in the sense that they do not rely on logic or objectivity, but emotions are still important influences in
    the choices we make. One common element is risk tolerance or how well you handle uncertainty. For
    example, choosing to join a start-up may promise a big upside reward when compensation comes in the form
    of stock options that become valuable when the company is acquired. However, that comes at the cost of
    lower cash compensation with no certainty of higher reward; there is the risk that the company will fail to find
    a market for its goods or services and go out of business, rendering the stock options worthless.

    Your willingness to take on some risk will shape your decision. Other emotions can come into play. For
    instance, you may want to be close to friends and family or work for a company that gives you a sense of
    status or prestige. There may even be an emotional component to the criteria you have used (e.g., how you
    will feel about yourself if you accept a job at a company that pays more than the others even though you do
    not agree with some of its business practices).

    You also have to approach decisions knowing that you do not always have full and accurate information. That
    does not mean you should choose based on assumptions or instinct but, rather, that it is not possible to have
    confidence that you have perfect information—only the best that is available at the time of the decision. You
    cannot fully know what it is like to work at a job until you have actually done so. People can tell you what it is
    like, but you may perceive it differently. In that sense, the information you based your analysis on was limited
    by what was knowable; some things are only learned through experience.

    The ability to make decisions can improve as you are given more opportunities to make decisions. Stating
    goals, identifying alternatives and criteria, analyzing those alternatives, and finally making a choice all rely on
    a mix of skills, aptitudes, and heuristics that enable us to make sense of the options. These can be developed
    over time to improve your judgment and ability to make the right decision.

    UNIT IV STUDY GUIDE
    Motivation, Emotion, and Commitment
    in Decision-Making

    MGT 3303, Managerial Decision Making 2

    UNIT x STUDY GUIDE
    Title

    Motivation and Emotions in Decision-Making

    The textbook gives some illustrations; one is called the footbridge dilemma, and the other is called the trolley
    dilemma. It outlines several different scenarios where you must decide to push one person off the bridge or
    pull a switch in order to save five people. It is quite interesting to read about how your emotions play into your
    decision. These examples lead to the explanation of two approaches to this type of decision-making. One is
    the utilitarian approach, which states that you should do what is good for the largest number of people. The
    other is called the deontological approach, which says that you should use your judgment in decision-making
    based on morals and beliefs that adhere to rules and duties in your society (Bazerman & Moore, 2013).

    People’s emotions come into play and are a major
    factor in these scenarios. On one hand, you could
    argue it is better to kill one person to save five
    people. On the other hand, is it right for you to kill
    a person no matter what may happen to the other
    five people? As you study the examples, you will
    see that sometimes we follow our emotions and
    sometimes we do not; we may not apply our
    emotions in the decision-making process in a
    manner we might have chosen if we had longer to
    think about the decision. Because of temporary
    emotions or motivations (e.g., addiction, hunger,
    sexual stimulus), we may make impulse or
    inconsistent decisions that are not congruent with
    our long-term best interest.

    We will address three ways that emotions and
    motivation affect our decisions. First, we will
    discuss the dilemma of doing what we want to do
    versus doing what we should do. Second, we will
    discuss fairness perspectives that lead to self-
    serving decisions. Third, we will discuss how
    emotions influence our judgment (Bazerman &
    Moore, 2013).

    When Emotions and Cognition Collide

    We have studied heuristics and how we automatically make decisions without much thought. In this unit, we
    will add strength to that theory by discussing the multiple-selves theory and the battle between our want self
    and our should self. These theories tie directly to the System 1 thinking and System 2 thinking covered
    previously. Some people constantly battle with their choices for food and exercise. The want self tells them to
    eat a large ribeye steak, potatoes with gravy, bread, a second helping of potatoes, and then a large helping of
    blueberry crunch for dessert. The should self says, “Wait a minute; slowly eat a small piece of steak, green
    beans, salad with a tablespoon of dressing, a small scoop of dessert, and no second helpings.” The want self
    says they can skip the exercise today and start back tomorrow. The should self says take a brisk 30-minute
    walk, stretch, do push-ups, and then lift weights for 15 minutes. Which self wins? They both do at times. The
    more a person puts controls in place to limit the want self and encourage the should self, the more successful
    he or she will be at doing the things that should be done. Many people battle with finances (e.g., spending
    needlessly and saving little). If we would put controls in place to limit credit cards, pay off balances every
    month, as well as have an automatic deduction for 401(k)s and savings, we would spend less and save more.

    Click here for an exercise about the multiple-selves theory. Be sure you have reviewed Chapter 6 before
    taking this quiz.

    Another concept we need to understand is referred to as discounting (Bazerman & Moore, 2013). The choices
    you make are a tradeoff between now and sometime in the future; therefore, the future choice should be
    discounted to some degree based on time (how far away the result of the choice is). Exponential discounting
    means discounting the same percentage for each future period. Hyperbolic discounting compares everything
    to the current time, and all future gains or losses are worth less than they are right now. These theories

    In the trolley dilemma, a person has to decide whether to pull a
    lever that would kill one person to save five other people. What
    would you do?
    (Backer, n.d.)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149458066_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149458066_1)

    MGT 3303, Managerial Decision Making 3

    UNIT x STUDY GUIDE
    Title

    support that we are biased toward the present (Bazerman & Moore, 2013). They also support that when we
    make decisions about the future, our focus is on what we should do, but when we make decisions about
    today, we are more likely to do what we want to do.

    These differences between decisions made at different times (present versus future) go back to the vividness
    of events in the present that we discussed in Unit III. Earlier we discussed that our brains are activated in a
    different area for immediate reward than for a delayed reward. The result is that our brain dramatically
    overweighs the present reward and neglects the good that could result from the delayed reward. An example
    would be to buy a new car or keep the current one a few more years. A new car is great for looks, comfort,
    and features, but what about the higher payment and spent savings? An ice cream would really be a sweet-
    tasting splurge, but what about the potential weight gain or extra gym time or the increase in cholesterol or
    sugar levels? Most people find it hard to override the present reward and wait for the future, or delayed,
    reward.

    In 2008, the world experienced a financial crisis when the U.S. housing market crashed. This was a classic
    example of the tendency to overly discount the future value of mortgages. None of the responsible parties
    (borrowers, lenders, or politicians) anticipated the consequences of the short-term decisions that were made.
    What we need to learn from this want versus should self-awareness is to control our destructive impulses in
    short-term decisions. We should use our should self to plan and develop schemes in advance to control the
    want self. We need to have inflexible pre-commitment routines or plans in place that will make us effective
    decision makers. We need to acknowledge that we have internal inconsistencies, and the two competing
    selves cannot both be good for us (Bazerman & Moore, 2013). Set a date or time for when you should make a
    new car purchase unless you have a major breakdown or wreck. Establish periods to wait in between ice
    cream cone splurges, and stick to them. Simple but consistent strategies will result in more long-term
    benefits.

    We all have self-serving reasoning that biases our decisions. When we studied the confirmation heuristic in
    Unit II, we learned that when we receive information that is favorable, we accept it more readily. If we receive
    unfavorable or negative information, we are much more critical in our evaluation process of that information.
    Very smart and well-meaning people make biased decisions every day while they continue to believe that
    they are being fair and objective in their decision-making. They also feel and believe they are being ethical in
    their decision-making. For their behavior to be legally unethical, they must knowingly engage in unethical or
    criminal behavior (Bazerman & Moore, 2013).

    Emotional Influences on Decision-Making

    Some theories suggest that when we are in a good mood, we rely more heavily on heuristics, which results in
    System 1 thinking and, therefore, making more biased decisions. When we are in a bad mood, we tend to
    move toward System 2 thinking and are more deliberate, using our judgment in our decisions with less bias.
    The textbook argues that there is too much evidence to the contrary and that this is not true (Bazerman &
    Moore, 2013).

    Basic emotions such as happiness, sadness, fear, disgust, and anger are the same in every culture. These
    basic emotions activate stimuli in us that prepare us to respond in a certain way. Fear stimuli prepare us to
    flee. Disgust stimuli prepare us to purge. Sadness causes a focus on self. Anger stimulates us in a variety of
    ways including increasing confidence and decreasing risk sensitivity. Other emotions associated with our
    social characteristics include compassion and pride. These are more complex but are still associated with a
    particular mindset (Bazerman & Moore, 2013). All of these emotions can affect our mindset. For more
    information on this topic, watch the following short video.

    BBC Worldwide Learning. (2015, November 24). The importance of emotions in decision making and

    personality [Video].
    http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AON
    E?u=oran95108&sid=AONE&xid=a564b1e6

    Click here for a transcript of this video.

    One’s emotional state can play a part in the endowment effect, which states that the value of something is
    higher if you own it (Bazerman & Moore, 2013). If you are not careful, emotions can negatively affect financial

    [http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6](http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6)

    [http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6](http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149461561_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149461561_1)

    MGT 3303, Managerial Decision Making 4

    UNIT x STUDY GUIDE
    Title

    decisions. Our perception of risk is tied to our emotions. The happier we are, the more optimistic we are. If we
    are sad, then we tend to be more pessimistic. Fear and anxiety can create risk-averse behavior, and anger
    can create risk-acceptance behavior.

    Weather has an influence on the mood and perceptions of a person. Cloudy days versus sunny days make a
    difference in how happy a person feels. Our swings in mood are because of the same mental processes that
    cause the confirmation heuristic studied in Unit II (Bazerman & Moore, 2013). We are better at remembering
    information that is consistent with our mindset than we are with remembering information that is inconsistent
    with our mindset. The anticipation of regret can drive our behaviors through emotions as well. Even if we
    cannot stop ourselves from feeling, we can limit how much we let our emotions affect us negatively and in the
    decisions we make.

    We sometimes are unaware of the influence of emotions in our decision-making. When we are angry, it is
    best to pause before making what could be irrational decisions based in our anger. Being aware of our
    emotional state is the key to controlling how our emotions can affect our judgment and bias our decisions. If
    we identify our emotions and their sources, we have a better chance of neutralizing their effects. An additional
    strategy for managing the negative impact of emotions in decision-making is assigning accountability to
    decision makers. If decision makers have to justify their decisions and be held accountable, they are more
    likely to use a rational approach (System 2 thinking) in the decision-making process and less likely to let
    emotions control the process (System 1 thinking) (Bazerman & Moore, 2013). Even though it is difficult to
    control our emotions, if we understand how they can influence our decisions, we can improve the process of
    decision-making.

    Motivation and the Escalation of Commitment

    We will now focus on a series of choices rather than a single choice. Most critical managerial decisions are
    the result of a series of choices. A particular type of bias associated with a series of choices is referred to as
    an escalation of commitment bias (Bazerman & Moore, 2013). This bias suggests that we have a tendency to
    escalate our commitment to our initial decision. Once we have made a decision, we will have to make other
    decisions related to our initial decision. Each subsequent decision supporting our initial decision means we
    have invested more time and energy based on our first decision. Now, we are vested in our initial decision.
    Therefore, if the initial decision was a bad decision, we may still have a tendency to justify our initial decision
    and look for supporting or confirming evidence that the decision will eventually be a good one. Inertia pushes
    us to continue on course because we feel we have too much invested to quit.

    Is it irrational to continue on the same course of action when evidence shows otherwise? We have to know
    when to quit. Persistence can lead to substantial rewards, but it can also lead to wasted time, energy,
    resources, and money. We need to hone our abilities so we can better determine which situations will payoff
    versus those that will not. In order to do so, we need to be able to understand that nonrational escalation
    (commitment to a course of action beyond a point that a rational model would pursue) has to be stopped. We
    have to realize that everything invested so far is considered a sunk cost and is not recoverable (Bazerman &
    Moore, 2013). These costs should not be considered for future decision-making. We should now only be
    evaluating the future costs and benefits of the alternative actions necessary for the best long-term
    commitments.

    The primary reason for escalation is self-justification. Once we make an initial decision on a course of action,
    anything negative is feedback that we do not want to hear. We tend to escalate our commitment to the initial
    decision by highlighting the positive feedback and ignoring the negative feedback while hoping that this action
    will lead to success. Individuals are more likely to escalate commitment than groups, but groups will escalate
    to a greater degree than individuals (Bazerman & Moore, 2013). It is important that managers be aware of the
    difficulty of separating initial decisions from future decisions. Managers should take steps to prevent
    nonrational escalation of commitment by providing a separation of duties for subsequent decisions or
    assigning different individuals or groups to evaluate future decisions that are based on the initial decision.

    MGT 3303, Managerial Decision Making 5

    UNIT x STUDY GUIDE
    Title

    In the previous paragraphs, we discussed
    unilateral escalation, which is associated with
    an individual or group decision. Now we turn to
    competitive escalation, which is caused by
    competition between individuals or groups.
    Competition feeds the escalation process
    (Bazerman & Moore, 2013). A strategy to
    identify competitive traps is to consider the
    perspective of the other decision makers and to
    try to accurately predict their decisions. Another
    strategy is to collude with the other decision
    makers to create win-win situations for all.
    Communication is the key to this success. In a

    competitive situation, if we fail to see the perspective of others in the decision-making process, it can lead to
    financial loss. In a competitive situation, we somehow forget that our original objective was to make money,
    but our competitive spirit can change our objective to winning (which means beating the other decision
    makers). Our desire to win serves as an additional motivation.

    Psychological factors feed nonrational escalation in our decisions. One of the first steps to prevent that is to
    identify those factors. If you remember in Unit I, we discussed that we have a tendency to pay closer attention
    to confirming information than disconfirming information. We also discussed how we protect our initial
    decisions by seeking out supporting information about those decisions. Since we have chosen a particular
    path, we will then selectively filter information so we can maintain our commitment to that path. To offset our
    tendencies, we need to vigilantly search for disconfirming information to counterbalance the confirming
    information we intuitively seek (Bazerman & Moore, 2013). This is especially true in serial decisions where we
    have a natural tendency toward escalation. We also need to establish monitoring systems that help us keep a
    proper perspective and put a check on our perceptions when making a decision. A good way to do that is to
    seek an outside opinion to evaluate the alternatives to make sure we are not filtering out disconfirming
    information. This will help us reduce or eliminate our escalatory behavior.

    Another factor in escalation is considered as saving face. We may stick to a bad decision because we fear the
    opinions that others may have of us. We think that others will think badly of us for changing our minds or not
    sticking to our decisions. The key here is to make the best decision for the future, regardless of the decisions
    made in the past. We have already talked about sunk costs. Our focus should be our future costs and
    benefits. Businesses need to develop systems that reward good decisions, not decisions that foster status
    quo or nonrational decision-making. They should also constantly reassess the rationality of future
    commitments and learn to identify and address failed strategies in the early stages (Bazerman & Moore,
    2013). This strategy can be accomplished if they keep motivations, emotions, and commitment in proper
    perspective.

    Click here to test your knowledge of concepts learned in this unit. Be sure you have reviewed Chapters 6 and
    7 before taking this quiz.

    References

    Bazerman, M. H., & Moore, D. A. (2013). Judgment in managerial decision making (8th ed.). Wiley.

    Backer, K. (n.d.). Yellow electric streetcar on tracks [Image]. Dreamstime. http://www.dreamstime.com

    Flynt. (2013, August 1). Business competition tug of war [Photograph]. Dreamstime.

    http://www.dreamstime.com

    Competition adds to the escalation process.
    (Flynt, 2013)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149458237_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149458237_1)

    **instructions.PNG**

    This file is too large to display. [View in new window](https://www.sweetstudy.com/files/instructions-png-10147283)

    **## UnitIVstudyguide.pdf**

    MGT 3303, Managerial Decision Making 1

    Course Learning Outcomes for Unit IV

    Upon completion of this unit, students should be able to:

    3. Explore the psychological aspects of decision-making.
    3.1 Describe the competitive escalation paradigm.
    3.2 Explain how to avoid escalation of commitment in a decision-making scenario.

    5. Explain how motivation and emotion impact managerial decision-making.
    5.1 Analyze how motivation and emotion influence decision-making.
    5.2 Illustrate how to minimize the effects of motivation and emotion on the decision-making process

    of a current company.
    5.3 Exemplify what happens when emotions collide with cognition.

    Reading Assignment

    Chapter 6: Motivational and Emotional Influences on Decision Making

    Chapter 7: The Escalation of Commitment

    Unit Lesson

    Nonrational Decision-Making

    The emotional aspects of decision-making have been left out of the discussion so far. These aspects are not
    rational in the sense that they do not rely on logic or objectivity, but emotions are still important influences in
    the choices we make. One common element is risk tolerance or how well you handle uncertainty. For
    example, choosing to join a start-up may promise a big upside reward when compensation comes in the form
    of stock options that become valuable when the company is acquired. However, that comes at the cost of
    lower cash compensation with no certainty of higher reward; there is the risk that the company will fail to find
    a market for its goods or services and go out of business, rendering the stock options worthless.

    Your willingness to take on some risk will shape your decision. Other emotions can come into play. For
    instance, you may want to be close to friends and family or work for a company that gives you a sense of
    status or prestige. There may even be an emotional component to the criteria you have used (e.g., how you
    will feel about yourself if you accept a job at a company that pays more than the others even though you do
    not agree with some of its business practices).

    You also have to approach decisions knowing that you do not always have full and accurate information. That
    does not mean you should choose based on assumptions or instinct but, rather, that it is not possible to have
    confidence that you have perfect information—only the best that is available at the time of the decision. You
    cannot fully know what it is like to work at a job until you have actually done so. People can tell you what it is
    like, but you may perceive it differently. In that sense, the information you based your analysis on was limited
    by what was knowable; some things are only learned through experience.

    The ability to make decisions can improve as you are given more opportunities to make decisions. Stating
    goals, identifying alternatives and criteria, analyzing those alternatives, and finally making a choice all rely on
    a mix of skills, aptitudes, and heuristics that enable us to make sense of the options. These can be developed
    over time to improve your judgment and ability to make the right decision.

    UNIT IV STUDY GUIDE
    Motivation, Emotion, and Commitment
    in Decision-Making

    MGT 3303, Managerial Decision Making 2

    UNIT x STUDY GUIDE
    Title

    Motivation and Emotions in Decision-Making

    The textbook gives some illustrations; one is called the footbridge dilemma, and the other is called the trolley
    dilemma. It outlines several different scenarios where you must decide to push one person off the bridge or
    pull a switch in order to save five people. It is quite interesting to read about how your emotions play into your
    decision. These examples lead to the explanation of two approaches to this type of decision-making. One is
    the utilitarian approach, which states that you should do what is good for the largest number of people. The
    other is called the deontological approach, which says that you should use your judgment in decision-making
    based on morals and beliefs that adhere to rules and duties in your society (Bazerman & Moore, 2013).

    People’s emotions come into play and are a major
    factor in these scenarios. On one hand, you could
    argue it is better to kill one person to save five
    people. On the other hand, is it right for you to kill
    a person no matter what may happen to the other
    five people? As you study the examples, you will
    see that sometimes we follow our emotions and
    sometimes we do not; we may not apply our
    emotions in the decision-making process in a
    manner we might have chosen if we had longer to
    think about the decision. Because of temporary
    emotions or motivations (e.g., addiction, hunger,
    sexual stimulus), we may make impulse or
    inconsistent decisions that are not congruent with
    our long-term best interest.

    We will address three ways that emotions and
    motivation affect our decisions. First, we will
    discuss the dilemma of doing what we want to do
    versus doing what we should do. Second, we will
    discuss fairness perspectives that lead to self-
    serving decisions. Third, we will discuss how
    emotions influence our judgment (Bazerman &
    Moore, 2013).

    When Emotions and Cognition Collide

    We have studied heuristics and how we automatically make decisions without much thought. In this unit, we
    will add strength to that theory by discussing the multiple-selves theory and the battle between our want self
    and our should self. These theories tie directly to the System 1 thinking and System 2 thinking covered
    previously. Some people constantly battle with their choices for food and exercise. The want self tells them to
    eat a large ribeye steak, potatoes with gravy, bread, a second helping of potatoes, and then a large helping of
    blueberry crunch for dessert. The should self says, “Wait a minute; slowly eat a small piece of steak, green
    beans, salad with a tablespoon of dressing, a small scoop of dessert, and no second helpings.” The want self
    says they can skip the exercise today and start back tomorrow. The should self says take a brisk 30-minute
    walk, stretch, do push-ups, and then lift weights for 15 minutes. Which self wins? They both do at times. The
    more a person puts controls in place to limit the want self and encourage the should self, the more successful
    he or she will be at doing the things that should be done. Many people battle with finances (e.g., spending
    needlessly and saving little). If we would put controls in place to limit credit cards, pay off balances every
    month, as well as have an automatic deduction for 401(k)s and savings, we would spend less and save more.

    Click here for an exercise about the multiple-selves theory. Be sure you have reviewed Chapter 6 before
    taking this quiz.

    Another concept we need to understand is referred to as discounting (Bazerman & Moore, 2013). The choices
    you make are a tradeoff between now and sometime in the future; therefore, the future choice should be
    discounted to some degree based on time (how far away the result of the choice is). Exponential discounting
    means discounting the same percentage for each future period. Hyperbolic discounting compares everything
    to the current time, and all future gains or losses are worth less than they are right now. These theories

    In the trolley dilemma, a person has to decide whether to pull a
    lever that would kill one person to save five other people. What
    would you do?
    (Backer, n.d.)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149458066_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149458066_1)

    MGT 3303, Managerial Decision Making 3

    UNIT x STUDY GUIDE
    Title

    support that we are biased toward the present (Bazerman & Moore, 2013). They also support that when we
    make decisions about the future, our focus is on what we should do, but when we make decisions about
    today, we are more likely to do what we want to do.

    These differences between decisions made at different times (present versus future) go back to the vividness
    of events in the present that we discussed in Unit III. Earlier we discussed that our brains are activated in a
    different area for immediate reward than for a delayed reward. The result is that our brain dramatically
    overweighs the present reward and neglects the good that could result from the delayed reward. An example
    would be to buy a new car or keep the current one a few more years. A new car is great for looks, comfort,
    and features, but what about the higher payment and spent savings? An ice cream would really be a sweet-
    tasting splurge, but what about the potential weight gain or extra gym time or the increase in cholesterol or
    sugar levels? Most people find it hard to override the present reward and wait for the future, or delayed,
    reward.

    In 2008, the world experienced a financial crisis when the U.S. housing market crashed. This was a classic
    example of the tendency to overly discount the future value of mortgages. None of the responsible parties
    (borrowers, lenders, or politicians) anticipated the consequences of the short-term decisions that were made.
    What we need to learn from this want versus should self-awareness is to control our destructive impulses in
    short-term decisions. We should use our should self to plan and develop schemes in advance to control the
    want self. We need to have inflexible pre-commitment routines or plans in place that will make us effective
    decision makers. We need to acknowledge that we have internal inconsistencies, and the two competing
    selves cannot both be good for us (Bazerman & Moore, 2013). Set a date or time for when you should make a
    new car purchase unless you have a major breakdown or wreck. Establish periods to wait in between ice
    cream cone splurges, and stick to them. Simple but consistent strategies will result in more long-term
    benefits.

    We all have self-serving reasoning that biases our decisions. When we studied the confirmation heuristic in
    Unit II, we learned that when we receive information that is favorable, we accept it more readily. If we receive
    unfavorable or negative information, we are much more critical in our evaluation process of that information.
    Very smart and well-meaning people make biased decisions every day while they continue to believe that
    they are being fair and objective in their decision-making. They also feel and believe they are being ethical in
    their decision-making. For their behavior to be legally unethical, they must knowingly engage in unethical or
    criminal behavior (Bazerman & Moore, 2013).

    Emotional Influences on Decision-Making

    Some theories suggest that when we are in a good mood, we rely more heavily on heuristics, which results in
    System 1 thinking and, therefore, making more biased decisions. When we are in a bad mood, we tend to
    move toward System 2 thinking and are more deliberate, using our judgment in our decisions with less bias.
    The textbook argues that there is too much evidence to the contrary and that this is not true (Bazerman &
    Moore, 2013).

    Basic emotions such as happiness, sadness, fear, disgust, and anger are the same in every culture. These
    basic emotions activate stimuli in us that prepare us to respond in a certain way. Fear stimuli prepare us to
    flee. Disgust stimuli prepare us to purge. Sadness causes a focus on self. Anger stimulates us in a variety of
    ways including increasing confidence and decreasing risk sensitivity. Other emotions associated with our
    social characteristics include compassion and pride. These are more complex but are still associated with a
    particular mindset (Bazerman & Moore, 2013). All of these emotions can affect our mindset. For more
    information on this topic, watch the following short video.

    BBC Worldwide Learning. (2015, November 24). The importance of emotions in decision making and

    personality [Video].
    http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AON
    E?u=oran95108&sid=AONE&xid=a564b1e6

    Click here for a transcript of this video.

    One’s emotional state can play a part in the endowment effect, which states that the value of something is
    higher if you own it (Bazerman & Moore, 2013). If you are not careful, emotions can negatively affect financial

    [http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6](http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6)

    [http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6](http://link.galegroup.com.libraryresources.columbiasouthern.edu/apps/doc/LSRCRZ030527188/AONE?u=oran95108&sid=AONE&xid=a564b1e6)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149461561_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149461561_1)

    MGT 3303, Managerial Decision Making 4

    UNIT x STUDY GUIDE
    Title

    decisions. Our perception of risk is tied to our emotions. The happier we are, the more optimistic we are. If we
    are sad, then we tend to be more pessimistic. Fear and anxiety can create risk-averse behavior, and anger
    can create risk-acceptance behavior.

    Weather has an influence on the mood and perceptions of a person. Cloudy days versus sunny days make a
    difference in how happy a person feels. Our swings in mood are because of the same mental processes that
    cause the confirmation heuristic studied in Unit II (Bazerman & Moore, 2013). We are better at remembering
    information that is consistent with our mindset than we are with remembering information that is inconsistent
    with our mindset. The anticipation of regret can drive our behaviors through emotions as well. Even if we
    cannot stop ourselves from feeling, we can limit how much we let our emotions affect us negatively and in the
    decisions we make.

    We sometimes are unaware of the influence of emotions in our decision-making. When we are angry, it is
    best to pause before making what could be irrational decisions based in our anger. Being aware of our
    emotional state is the key to controlling how our emotions can affect our judgment and bias our decisions. If
    we identify our emotions and their sources, we have a better chance of neutralizing their effects. An additional
    strategy for managing the negative impact of emotions in decision-making is assigning accountability to
    decision makers. If decision makers have to justify their decisions and be held accountable, they are more
    likely to use a rational approach (System 2 thinking) in the decision-making process and less likely to let
    emotions control the process (System 1 thinking) (Bazerman & Moore, 2013). Even though it is difficult to
    control our emotions, if we understand how they can influence our decisions, we can improve the process of
    decision-making.

    Motivation and the Escalation of Commitment

    We will now focus on a series of choices rather than a single choice. Most critical managerial decisions are
    the result of a series of choices. A particular type of bias associated with a series of choices is referred to as
    an escalation of commitment bias (Bazerman & Moore, 2013). This bias suggests that we have a tendency to
    escalate our commitment to our initial decision. Once we have made a decision, we will have to make other
    decisions related to our initial decision. Each subsequent decision supporting our initial decision means we
    have invested more time and energy based on our first decision. Now, we are vested in our initial decision.
    Therefore, if the initial decision was a bad decision, we may still have a tendency to justify our initial decision
    and look for supporting or confirming evidence that the decision will eventually be a good one. Inertia pushes
    us to continue on course because we feel we have too much invested to quit.

    Is it irrational to continue on the same course of action when evidence shows otherwise? We have to know
    when to quit. Persistence can lead to substantial rewards, but it can also lead to wasted time, energy,
    resources, and money. We need to hone our abilities so we can better determine which situations will payoff
    versus those that will not. In order to do so, we need to be able to understand that nonrational escalation
    (commitment to a course of action beyond a point that a rational model would pursue) has to be stopped. We
    have to realize that everything invested so far is considered a sunk cost and is not recoverable (Bazerman &
    Moore, 2013). These costs should not be considered for future decision-making. We should now only be
    evaluating the future costs and benefits of the alternative actions necessary for the best long-term
    commitments.

    The primary reason for escalation is self-justification. Once we make an initial decision on a course of action,
    anything negative is feedback that we do not want to hear. We tend to escalate our commitment to the initial
    decision by highlighting the positive feedback and ignoring the negative feedback while hoping that this action
    will lead to success. Individuals are more likely to escalate commitment than groups, but groups will escalate
    to a greater degree than individuals (Bazerman & Moore, 2013). It is important that managers be aware of the
    difficulty of separating initial decisions from future decisions. Managers should take steps to prevent
    nonrational escalation of commitment by providing a separation of duties for subsequent decisions or
    assigning different individuals or groups to evaluate future decisions that are based on the initial decision.

    MGT 3303, Managerial Decision Making 5

    UNIT x STUDY GUIDE
    Title

    In the previous paragraphs, we discussed
    unilateral escalation, which is associated with
    an individual or group decision. Now we turn to
    competitive escalation, which is caused by
    competition between individuals or groups.
    Competition feeds the escalation process
    (Bazerman & Moore, 2013). A strategy to
    identify competitive traps is to consider the
    perspective of the other decision makers and to
    try to accurately predict their decisions. Another
    strategy is to collude with the other decision
    makers to create win-win situations for all.
    Communication is the key to this success. In a

    competitive situation, if we fail to see the perspective of others in the decision-making process, it can lead to
    financial loss. In a competitive situation, we somehow forget that our original objective was to make money,
    but our competitive spirit can change our objective to winning (which means beating the other decision
    makers). Our desire to win serves as an additional motivation.

    Psychological factors feed nonrational escalation in our decisions. One of the first steps to prevent that is to
    identify those factors. If you remember in Unit I, we discussed that we have a tendency to pay closer attention
    to confirming information than disconfirming information. We also discussed how we protect our initial
    decisions by seeking out supporting information about those decisions. Since we have chosen a particular
    path, we will then selectively filter information so we can maintain our commitment to that path. To offset our
    tendencies, we need to vigilantly search for disconfirming information to counterbalance the confirming
    information we intuitively seek (Bazerman & Moore, 2013). This is especially true in serial decisions where we
    have a natural tendency toward escalation. We also need to establish monitoring systems that help us keep a
    proper perspective and put a check on our perceptions when making a decision. A good way to do that is to
    seek an outside opinion to evaluate the alternatives to make sure we are not filtering out disconfirming
    information. This will help us reduce or eliminate our escalatory behavior.

    Another factor in escalation is considered as saving face. We may stick to a bad decision because we fear the
    opinions that others may have of us. We think that others will think badly of us for changing our minds or not
    sticking to our decisions. The key here is to make the best decision for the future, regardless of the decisions
    made in the past. We have already talked about sunk costs. Our focus should be our future costs and
    benefits. Businesses need to develop systems that reward good decisions, not decisions that foster status
    quo or nonrational decision-making. They should also constantly reassess the rationality of future
    commitments and learn to identify and address failed strategies in the early stages (Bazerman & Moore,
    2013). This strategy can be accomplished if they keep motivations, emotions, and commitment in proper
    perspective.

    Click here to test your knowledge of concepts learned in this unit. Be sure you have reviewed Chapters 6 and
    7 before taking this quiz.

    References

    Bazerman, M. H., & Moore, D. A. (2013). Judgment in managerial decision making (8th ed.). Wiley.

    Backer, K. (n.d.). Yellow electric streetcar on tracks [Image]. Dreamstime. http://www.dreamstime.com

    Flynt. (2013, August 1). Business competition tug of war [Photograph]. Dreamstime.

    http://www.dreamstime.com

    Competition adds to the escalation process.
    (Flynt, 2013)

    [https://online.columbiasouthern.edu/bbcswebdav/xid-149458237_1](https://online.columbiasouthern.edu/bbcswebdav/xid-149458237_1)

    **instructions.PNG**

    This file is too large to display. [View in new window](https://www.sweetstudy.com/files/instructions-png-10147283)

  • [Solved] assigment help

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Operations Management homework help](https://www.sweetstudy.com/fields/business-finance-operations-management) – 2 years ago

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Operations Management homework help](https://www.sweetstudy.com/fields/business-finance-operations-management)

    – 2 years ago

  • [Solved] PowerPoint

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) Contribute to team goals and objectives through active participation and collaboration. For this PowerPoint assignment, select an organization of interest to you. This may be your current or former organizatio…

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    Contribute to team goals and objectives through active participation and collaboration.

    For this PowerPoint assignment, select an organization of interest to you. This may be your current or former organization or perhaps one that is frequently in the news. Chapter 9 of the text (DuBrin, 2023) provides a framework for understanding the leader’s role in team-based organizations and differentiates between actions that can be taken at the organizational level, the leader level, and the individual level. In addition, Chapter 12 provides you with an opportunity to learn about your personal conflict resolution style.

    Checklist:

    – Introduction section: Introduce the reason you are proposing a team approach by identifying the long-term business goal you desire to achieve through teamwork.
    – Actions for the organization level: (see DuBrin text, Table 9-1)
    – Identify which of the seven actions are appropriately established and which need to be revised or developed.
    – Propose recommendations for policy and structure changes to better enable the successful deployment of a team approach.
    – Actions at the leader level: (see DuBrin text, Table 9-1)
    – Using the 12 actions that leaders can take as a model, identify three strengths that seem generally consistent among leaders in the organization and three opportunities for development.
    – Propose recommendations for leader training and development to help the team approach succeed.
    – Actions at the individual level: (see DuBrin text,)
    – Using the Leadership Self-Assessment , determine your personal conflict resolution style and summarize what indicates for team membership and leadership.
    – Using the Leadership Self-Assessment , determine your team player attitudes and propose recommendations for how you will improve your ability to contribute to team goals and objectives through active participation and collaboration.
    – Provides an inspirational call to action to support the recommendation. Provide a conclusion that connects to the goal provided in the introduction.
    – Ensure substantive integration of appropriate, current, and reliable resources — including in-text citations throughout the notes with a corresponding item on the reference list. A minimum of two viable sources are required [no older than 3 years].
    – Presentation quality: Your presentation should be spell and grammar-checked and demonstrate correct mechanics and appropriate writing and presentation style. The use of a professional template, graphics, and Microsoft® SmartArt® are necessary to make it visually appealing. Ensure each slide is streamlined and easily viewed in a large setting.

    **Order of presentation:**

    01. Title slide
    02. Introduction
    03. Organizational Level: Established versus development needed (2-3 total slides)
    04. Organizational Level: Recommendations (2-3 total slides)
    05. Leader Level: 3 strength and 3 development opportunities 2-3 total slides)
    1. Leader Level: Recommendations)
    06. Individual Level: Personal Conflict Resolution Style (2 slides)
    1. Individual Level: Team player attitudes
    07. Call to action (1 slide)
    08. Conclusion (1 slide)
    09. Thank you and Contact information (1 slide)
    10. References (1 slide)

    – 2 years ago

  • [Solved] Chapter 3 explains the research method being used in the study.

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) Chapter 3 explains the research method being used in the study. It describes the instruments associated with the chosen research method and design used; this includes information regarding instrument origin, r…

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    Chapter 3 explains the research method being used in the study. It describes the instruments associated with the chosen research method and design used; this includes information regarding instrument origin, reliability, and validity. Chapter 3 details the planned research approach, design, and analysis. An outline of the assumptions/limitations/delimitations to the choice of method and design is provided in chapter 3. Chapter 3 provides information on how the proposed research design aligns with IRB requirements.

    – [\
    \
    DSE_Chapter_3_Rubric_0303231.pdf](https://www.sweetstudy.com/files/dse-chapter-3-rubric-0303231-pdf-10147335 "DSE_Chapter_3_Rubric_0303231.pdf")
    – [\
    \
    FinalReview325.docx](https://www.sweetstudy.com/files/finalreview325-docx-10147337 "FinalReview325.docx")

    – 2 years ago

  • [Solved] Basic Healthcare Financial Principles

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) **Assignment Details** Memorial Hermann is a hospital system that has been facing some serious financial issues regarding its operations and meeting its vendors' financial obligations. Mr. Jones, the chief exe…

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    **Assignment Details**

    Memorial Hermann is a hospital system that has been facing some serious financial issues regarding its operations and meeting its vendors' financial obligations. Mr. Jones, the chief executive officer (CEO), called a meeting of some of the administrative managers for them to share their viewpoints on how to move forward.

    Write a 3-page response and include the following:

    – Describe the 3 viewpoints of the health care managers on how to move forward.
    – Explain why these viewpoints are important in health care financial management.

    Answer the following:

    1. Discuss how the elements of financial management relate to the function of the health care manager.
    2. Examine why it is important for health care managers to understand financial principles.
    3. What information do income, liabilities, assets, profits tell the health care manager?
    4. How does the function of a health care financial manager or chief financial officer (CFO) relate to the understanding of these concepts?
    5. What are the current challenges affecting health care financing at Memorial Hermann?
    6. How should these challenges be mitigated?

    **Resources**

    Read the following resources to help you:

    – [www.ncbi.nlm.nih.gov/pmc/articles/PMC6332650/](http://www.ncbi.nlm.nih.gov/pmc/articles/PMC6332650/)
    – [https://www.aha.org/fact-sheets/2020-04-24-fact-sheet-financial-challenges-facing-hospitals-and-health-systems-result](https://www.aha.org/fact-sheets/2020-04-24-fact-sheet-financial-challenges-facing-hospitals-and-health-systems-result)
    – [https://www.healthaffairs.org/doi/10.1377/hlthaff.2020.01560](https://www.healthaffairs.org/doi/10.1377/hlthaff.2020.01560)

    Cite at least 5 references in APA forma

    – 2 years ago

  • [Solved] 2500 words

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) All instructions in the file below The assignment is to conduct a critical analysis of a multinational entreprise or business unit within it in a host country of your choice where it operates encompassing situ…

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    All instructions in the file below

    The assignment is to conduct a critical analysis of a multinational entreprise  or business unit within it in a host country of your choice where it operates encompassing situation analysis, strategy choice adopted in the chosen country and strategic response to any present and or emerging chalenges.

    Keep in mind that you should choose one of the companies in the file to conduct a critical analysis in a country where they operate

    – 2 years ago

  • [Solved] 2500 words

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) All instructions in the file below The assignment is to conduct a critical analysis of a multinational entreprise or business unit within it in a host country of your choice where it operates encompassing situ…

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    All instructions in the file below

    The assignment is to conduct a critical analysis of a multinational entreprise  or business unit within it in a host country of your choice where it operates encompassing situation analysis, strategy choice adopted in the chosen country and strategic response to any present and or emerging chalenges.

    Keep in mind that you should choose one of the companies in the file to conduct a critical analysis in a country where they operate

    – [\
    \
    6EC513-W7S-2024-tentativeoutlineforCW21.pptx](https://www.sweetstudy.com/files/6ec513-w7s-2024-tentativeoutlineforcw21-pptx "6EC513-W7S-2024-tentativeoutlineforCW21.pptx")

    – 2 years ago

  • [Solved] Healthcare Management Practices

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) **Assignment Details** **Capstone Project** For this course project, you will select a hypothetical hospital that is failing in your area. You will prepare a report on how you will examine the challenges faced…

    Instant Solution Download

    $6.99

    Immediate access to the full model answer, formatted citations, and rubric breakdown.

    Need a Fresh Custom Paper?

    Have this question answered from scratch according to your specific instructions and deadline.

    Order on TutorsGallery →

    Assignment Prompt & Instructions

    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)

    **Assignment Details**

    **Capstone Project**

    For this course project, you will select a hypothetical hospital that is failing in your area. You will prepare a report on how you will examine the challenges faced by the hospital and recommend ways to turn the hospital around to make it successful.

    You will proceed with the project as guided and provide vital information from your research and real-life experience to fill in gaps where necessary. By the end of the first week, you should submit a complete outline and topic for the project.

    You have recently graduated from AIU with a bachelor's degree in healthcare management (BHCM). After going to a job fair, a medium-sized hospital group has called you back to look over its systems. Your first job is to do a complete analysis of the systems.

    For the Unit 1 Capstone Project, address the following in your analysis:

    1. Executive summary
    1. Nature of healthcare delivery in the United States
    2. Brief statement on challenges facing healthcare organizations and the need to alleviate them
    3. Brief statement on recommendations and conclusion
    2. Challenges facing hospitals
    1. Rising cost of care
    2. Cybersecurity
    3. Staff shortages
    4. Poor patient outcomes
    5. Poor public perceptions
    6. Managerial issues
    7. Bad debts
    8. Regulations
    3. Managerial perspectives
    1. Classical
    2. Behavioral
    3. Scientific

    **Submission Details**

    – Research and present a detailed outline on these items.
    – Your work should consist of a 3-page report with at least 5 references cited in APA style.

    Submitting your assignment in APA format means, at a minimum, that you will need the following:

    – **Title page:** Remember the running head. The title should be in all capitals.
    – **Length:** 3 pages minimum
    – **Body:** This begins on the page following the title page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
    – **Reference page:** References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation

    – [\
    \
    Unit1IPTemplate.docx](https://www.sweetstudy.com/files/unit1iptemplate-docx "Unit1IPTemplate.docx")
    – [\
    \
    CompletedCapstoneProjectTemplate.docx](https://www.sweetstudy.com/files/completedcapstoneprojecttemplate-docx "CompletedCapstoneProjectTemplate.docx")

    – 2 years ago