Transcript Figure 1.1 The Scope of Decision Making - Bar

The Managerial
Decision-Making Process
E. FRANK HARRISON
Fifth Edition
Copyright © 1999 Houghton Mifflin Company. All rights reserved.
6-0
The Managerial Decision-Making Process
Fifth Edition
Author: E. Frank Harrison, Ph.D.
Slides by Monique A. Pelletier, Ph.D.
Copyright © 1999 Houghton Mifflin Company. All rights reserved.
6-1
Chapter 6
The Psychology of
Decision Making
Copyright © 1999 Houghton Mifflin Company. All rights reserved.
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Personality in Decision Making
 Biological,
subconscious and
hereditary forces
 Common
traits and unique
individuality
 Holistic
approaches to personality
 Empirical
perspectives on personality
 Personality
effects on decision making
Copyright © 1999 Houghton Mifflin Company. All rights reserved.
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Risk Acceptance/Avoidance
 Empirical
perspectives
 A conceptual
model of risk
acceptance/avoidance
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Figure 6.1 A Conceptual Model of Risk Acceptance/Avoidance
A
Desirability of the outcome
E
F
C
B
D
I H
G
Propensity
for risk
acceptance
J
0
0.5
Probability of success
Copyright © 1999 Houghton Mifflin Company. All rights reserved.
Propensity
for risk
avoidance
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Perception in Decision Making
 The
perceptual process
 Characteristics
of the perceiver and the
perceived
 Forming
l
l
impressions of others:
stereotyping
projection
 Situational
 Empirical
halo effect
l perceptual defense
l
influences on perception
perspectives on perception
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Subconscious Influences on
Decision Making
 Freudian
l
id
 Mind
l
influences:
l
ego
l
subconscious
l
superego
levels:
conscious
l
preconscious
 Intuition:
l
effects on decision making
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Psychological Parameters in Decision
Making
 Personality
influences decision making.
 There
is a human tendency to avoid
uncertainty and highly risky situations.
 Perception
pervades the entire process
of decision making.
 Preconscious
and subconscious
thoughts invariably influence the
decision parameters.
Copyright © 1999 Houghton Mifflin Company. All rights reserved.
6-8
Psychological Parameters in Decision
Making (cont’d)
 Knowing
one’s self is the best way to
counter psychological parameters.
 The
psychology of decision making
militates for:
l
a judgmental strategy,
l
bounded rationality, and
l
a satisficing outcome.
Copyright © 1999 Houghton Mifflin Company. All rights reserved.
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