Tag: Valuation & Market Analysis

  • [Solved] Discussion

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    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) Teach me more about this subject – 2 years ago

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

    Teach me more about this subject

    – 2 years ago

  • [Solved] Strategic Planning

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    [>Management homework help](https://www.sweetstudy.com/fields/business-finance-management) **Strategic Planning** This is a two-part assignment, starting in Unit 5 and completed in Unit 6. Complete Part 1 of this assignment in Unit 5 by executing the requirements below and submit it to the Unit 5 Dr…

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

    **Strategic Planning**

    This is a two-part assignment, starting in Unit 5 and completed in Unit 6. Complete Part 1 of this assignment in Unit 5 by executing the requirements below and submit it to the Unit 5 Dropbox for grading. You must complete Part 1 of this assignment in Unit 5. Do not proceed to Part 2 of this assignment in Unit 6 until Part 1 in Unit 5 has been completed. Procrastination can be detrimental to your success in this class. The quality and depth of learning demonstrated in these deliverables matter.

    **Scenario:**

    It has been some time since you became the general manager of the [Turul Winery](https://www.turulwinery.com/) in the FLIGBY simulation theme and gameplay. As the general manager of the Turul Winery, you spent countless hours and a great deal of effort assessing the design and strategy of the organization. As a result, you have a deep understanding of the organization, and the owner has requested that you formulate a strategic plan to improve the competitive advantage of the Turul Winery within target markets. This requires you to conduct an additional series of strategic analyses to understand the Turul Winery's competitive position in current and potential future markets. You will analyze the external environment to explore opportunities and threats to the business.

    Furthermore, you will investigate the internal environment of the Turul Winery to determine factors that lead to competitive advantages for the business. Based on your findings, you will construct a business model canvas to inform your market research efforts to identify a business expansion opportunity. Your goal is to demonstrate skill and expertise in assessing and planning a results-oriented organizational (business-level) strategy focused on resilience, efficiency, and innovation to ensure competitive advantage, sustainability, and growth. You will use the results of these analyses to inform the development of a strategic plan due to the owner of Turul Winery in 2 weeks.

    Use the following criteria to conduct various forms of analyses to inform your strategic plan for an expansion effort into the international marketplace.

    **Assignment Part 1 Requirements:**

    **Strategy Report Format**

    – Use the [Strategic Planning Template](https://kapextmediassl-a.akamaihd.net/business/GB580/2405C/GB580_Unit_4_5_6_M2_Assignment_Template.docx) to develop your strategic report for the owner of Turul Winery.
    – Your strategic report should have a title page, table of contents, content pages, and a reference page.
    – Design a professional report using images, charts, diagrams, etc., to aid in disseminating information.
    – The strategy report is written in the third person.

    **Strategic Planning & Analysis**

    – Explain the strategic planning process.
    – Explain the purpose of strategic analysis in the strategic planning process.
    – Evaluate the current mission, vision, and values of the Turul Winery business.
    – Explain the concept of competitive advantage and why it is important to an organization.

    **SOAR Analysis for Competitive Advantage**

    Produce a SOAR analysis diagram based on the following inquiries:

    – Analyze the Turul Winery to identify a minimum of **three organizational strengths** that result in competitive advantages.
    – Analyze the Turul Winery to identify a minimum of **three** domestic and international business expansion opportunities that capitalize on the organization's competitive advantages.
    – Analyze the Turul Winery to realize a minimum of **three** organizational aspirations that may result from the organization's competitive advantages.
    – Analyze the Turul Winery to determine the expected results of market opportunities and organizational aspirations derived from the organization's competitive advantages.

    **Business Expansion Research**

    – Outline and explain **one** idea for business expansion in domestic markets based on the results of your extensive series of analyses.
    – Outline and explain **one** idea for business expansion in international markets based on your extensive series of analyses.
    – Analyze the segmentation variables of **one** domestic market for **one** business expansion idea using research tools.
    – Analyze the segmentation variables of **one** international market for **one** business expansion idea using research tools.

    **PESTLE Analysis**

    Analyze the external environment of the domestic and international marketplace to identify any risks and threats related to the business expansion ideas in association with each component of a PESTLE analysis:

    – Develop a diagram illustrating the **six** components of a PESTLE analysis.
    – Identify a minimum of **three** risks or threats for **one** business expansion idea in **one** domestic market using a PESTLE analysis.
    – Identify a minimum of **three** risks or threats for **one** business expansion idea in **one** international market using a PESTLE analysis.

    **Business Model Canvas**

    Using all of the information, ideas, and thoughts you have developed as a result of the extensive analyses you have done on the Turul Winery, produce a business model canvas using the template.

    – Complete the **nine** required sections in the business model canvas.
    – Demonstrate convergent analytical thinking in each section of the business model canvas.
    – Include a minimum of **three** bullet points of information in each section of the business model canvas.

    **Requirements:**

    **Audience, Reasoning, and Research**

    – The strategy report addresses the owner of the Turul Winery.
    – Use reasoning skills to support your statements, ideas, and decisions.
    – Use a minimum of three peer-reviewed academic research resources to substantiate your thoughts, opinions, and ideas.

    **APA Style**

    – Apply APA style to in-text citations with minor errors.
    – Apply APA style to references, with minor to no errors.
    – Research resources are from reliable and/or scholarly sources.

    **Writing Conventions**

    – Writing is focused, concise, and organized.
    – Articulates at a college level.
    – Few or no grammar or punctuation errors.
    – Uses non-offensive, inclusive, and respectful language.
    – Use headings to segment the topics in your writing in order to create a flow of ideas for your reader.

    – 2 years ago

  • [Solved] DISCUSSION

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    [>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…

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    [>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

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    [>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…

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    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

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    [>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 …

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    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**

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    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.

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    1. Individual Level: Team player attitudes
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    09. Thank you and Contact information (1 slide)
    10. References (1 slide)

    – 2 years ago

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    [>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…

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    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.

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    1. Discuss how the elements of financial management relate to the function of the health care manager.
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    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)
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