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  • 2016
  • Other Teaching and Training Material

Organizational Behavior Reading: Decision Making

By: Francesca Gino, Max Bazerman and Katherine Shonk
  • Format:Electronic
  • | Language:English
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Abstract

This Reading argues that decision making is systematically flawed and introduces methods to improve decision-making effectiveness. The Essential Reading section covers the rational decision-making model and three important ideas that challenge it: Herbert Simon's concept of bounded rationality; Amos Tversky and Daniel Kahneman's work on heuristics and biases; and Keith Stanovich and Richard West's conceptualization of System 1 and System 2 thinking. The Reading then discusses seven common biases or heuristics, along with ways to mitigate them, and lists additional common biases to show the broad range of issues that can influence decision making. The authors also describe biases and additional decision-making challenges that are particular to groups. Finally, the Essential Reading draws on Richard Thaler and Cass Sunstein's concept of choice architecture to present a new framework for better decision making. The Reading includes two Supplemental Reading sections that deal with how motivation and emotion affect decisions, and how flawed decision-making processes can compromise ethics. The Reading also features two videos and one Interactive Illustration.

Keywords

Game Theory; Decision Making

Citation

Gino, Francesca, Max Bazerman, and Katherine Shonk. "Organizational Behavior Reading: Decision Making." Core Curriculum Readings Series. Boston, MA: Harvard Business Publishing 8383, 2016. Electronic.
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About The Authors

Francesca Gino

Negotiation, Organizations & Markets
→More Publications

Max H. Bazerman

Negotiation, Organizations & Markets
→More Publications

More from the Authors

    • March–April 2023
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    You Need Two Leadership Gears: Know When to Take Charge and When to Get Out of the Way

    By: Lindy Greer, Francesca Gino and Robert Sutton
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    Authentic First Impressions Relate to Interpersonal, Social, and Entrepreneurial Success

    By: David M. Markowitz, Maryam Kouchaki, Francesca Gino, Jeffrey T. Hancock and Ryan L. Boyd
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    Mellody Hobson at Ariel Investments

    By: Lakshmi Ramarajan and Francesca Gino
More from the Authors
  • You Need Two Leadership Gears: Know When to Take Charge and When to Get Out of the Way By: Lindy Greer, Francesca Gino and Robert Sutton
  • Authentic First Impressions Relate to Interpersonal, Social, and Entrepreneurial Success By: David M. Markowitz, Maryam Kouchaki, Francesca Gino, Jeffrey T. Hancock and Ryan L. Boyd
  • Mellody Hobson at Ariel Investments By: Lakshmi Ramarajan and Francesca Gino
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