2013/2014 BA-HA_HU6G Psychology of decision-making - We are not irrational, are we?
English Title | |
Psychology of decision-making - We are not irrational, are we? |
Course information |
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Language | English |
Exam ECTS | 7.5 ECTS |
Type | Elective |
Level | Bachelor |
Duration | Summer |
Course period | Summer |
Time Table | Please see course schedule at e-Campus |
Study board |
Study Board for BSc in Economics and Business
Administration
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Course coordinator | |
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Main academic disciplines | |
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Last updated on 07-05-2013 |
Learning objectives | |||||||||||||||||||||
At the end of the course students
should be able to:
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Course prerequisites | |||||||||||||||||||||
English proficiency (speaking, comprehension and writing) is required. I will also assume that students had already studied - and will build upon students' knowledge and understanding of – at least one of the following topics and subjects: Organisational Behaviour and/or Management and/or Human Resource Management. Work experience is a bonus. | |||||||||||||||||||||
Prerequisites for registering for the exam | |||||||||||||||||||||
Compulsory assignments
(assessed approved/not approved)
Mandatory Mid-term Assignment: A 2-3 page reflective paper will need to be submitted on individual problem-solving or decision- making experiences, and course concepts should be applied in the analysis of the situation. With this paper students may practice the depth of analysis required for the final project and receive feedback on how to improve. |
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Examination | |||||||||||||||||||||
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Course content and structure | |||||||||||||||||||||
A policeman sees a drunk staring
at the ground beneath a streetlight. "What are you
doing?" "the cop asks. "Looking for my
keys."says the drunk. "I dropped them in the dark alley
over there." "Then why are you looking for them over
here? "asks the policeman, confused. "Oh, because the
light's so much better over here."
Having completed business or management education, most of us are searching for the keys to adaptive decision making "under the streetlight": in classrooms, and other controlled environments with clear metrics and practical tools. Rigorous analytical methods can help us in well-ordered situations. For many of us, however, what we were taught about making tough choices quickly falls apart, because real-world situations aren't well structured. In the unstructured, ambiguous, dynamic situations we often face, basing our actions on these conventional claims about decision-making can be useless. We have to rely on our experience, intuition and expertise instead, and look for a different set of solutions. This course will focus on ambiguous situations that are difficult to comprehend, and where conventional methods don’t work. We will contrast normative and descriptive theories of reasoning, judgment, and decision-making. We will explore assessments of risk and uncertainty, including research on calibration, hypothesis testing, and heuristics and biases. We will approach decision situations from the individual’s perspective, through the different lenses of individual personalities and styles. We will see how decisions are actually made and how these processes differ from the best, or optimal, methods for decision-making. Course structure: This interactive, pragmatic course focuses on the individual as a less-than-perfect decision-maker in competitive and cooperative contexts. The course examines how individuals process uncertainty and how they make decisions based on information they obtain from the environment, and how they take risks. In-class simulations and out-of-class assignments will be employed to provide experience and understanding of decision-making concepts and to help to develop new skills in a variety of contexts. Course content:
The course's development of personal
competences:
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Teaching methods | |||||||||||||||||||||
Class sessions will consist of a
variety of activities including lectures, team work and
discussions, projects, and in-class exercises. There will be
significant emphasis on experiential learning processes including
small group discussions, inventories and tests, problem-solving
exercises, games, case studies, role plays, along with home
assignments designed to apply concepts to work situations. Students
play an active part as they plan, simulate, negotiate, obtain
feedback, evaluate their own decision-making problems, and discuss
decision, and competitive strategies.
Since personal and professional development (i.e., awareness and skill-building) through in-class and out-of-class activities is the ultimate objective of the subject, attendance and continuous work is very important. If there is any business and/or international situation that catches your attention I would encourage you to bring it up in class for discussion. On each session significant individual, team and class work will be performed, work that cannot be substituted for by checking others’ notes or any other means of ‘catching up’ with the missed class. I will expect that students come to each class having completed the readings and skill-building assignments, with comments and questions in hand. Asking questions, challenging theories, each other (and the lecturer), defending own arguments, offering examples, and acting as a spokesperson are all essential to the learning process. The lecturer is a facilitator and students need to be an important part of the learning model. Preliminary Assignment: Short reflective analysis of personal decision making style: based on tests and class material from the fist two classes. |
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Expected literature | |||||||||||||||||||||
The book used for the
class:
Gary Klein (2009) Streetlights and
Shadows: Searching for the Keys to Adaptive Decision Making. A
Bradford Book The MIT Press. Cambridge, MA
Compendium (will be made available for purchase)
Case studies will be provided at the beginning of the course on LEARN. Recommended readings: Harvard Business Essentials, Decision Making: 5 Steps to Better Results by Business Essentials Harvard (Paperback - Jan 31, 2006) Ariely, Daniel. (2010) Predictably irrational (Expanded edition), Harper Perennial Baron, Jonathon. (2008) Thinking and Deciding (4th Ed). Cambridge University Press. Stanovich, Keith E. (2010) Decision making and rationality in the modern world. Oxford University Press.
The book used for the class: Gary Klein (2009) Streetlights and
Shadows: Searching for the Keys to Adaptive Decision Making. A
Bradford Book The MIT Press. Cambridge, MA
Compendium
1. Noel M. Tichy and Warren G. Bennis: Making Judgment Calls - The
ultimate act of leadership. Harvard Business Review, Oct 2007. pp.
94-101 (9)
2. Ashraf, N., Camerer, C. F., & Loewenstein, G (2005). Adam
Smith, Behavioral Economist. Journal of Economic Perspectives, 19
(13), 131–145.
3. Kirby, L. Psychological Type and the Myers-Briggs Type
Indicator. in Developing Leaders: Research and Applications in
Psychological Type and Leadership Development. Davies-Black
Publishing. California (15)
4. Senge P. Mental Models (1992) adapted from Chapter 10 Senge: The
Fifth Discipline: The Art and Practice of the Learning Organization
(New York: Doubleday/Currency) (12)
5. Arnold, J. and Randall, R. (2010): Stress and Well-Being ad
Work. in Work Psychology: Understanding Human Behavior at the
Workplace. 5th Ed. Pearson (34)
6. Mintzberg, H., Westley, F. (2001); Decision making: It's not
what you think. MIT Sloan Management Review; Cambridge; Spring
2001; Vol: 42; Issue: 3; Page: 89-93 (5)
7. *Cooksey, R. W. (2000). Mapping the texture of managerial
decision making: A complex dynamic decision perspective. Emergence,
2 (2). 102-122 (21) [on LEARN]
8. Snowden, D.J., and Boone, M. E. (2007) A leader’s framework for
decision making. Harvard Business Review, November 2007, 69-76
(8)
9. Harvey, J. B. (1988). The Abeline Paradox: The management of
agreement. Organizational Dynamics, 1988 Summer, pp. 17-43
(12)
10. Eugene Sadler-Smith and Erella Shefy: The intuitive executive:
Understanding and applying ‘gut feel’ in decision-making. Academy
of Management Executive, 2004, Vol. 18, No. 4
11. Robert, B, and Lajtha, C (2002). A new approach to crisis
management. Journal of Contingencies and Crisis Management. Vol
10., No 4. pp 181-191 (11)
12. *Matzler, K., Bailom, F., Mooradian, T. A.(2007) Intuitive
Decision Making. MIT Sloan Management Review. Cambridge: Fall 2007.
Vol. 49, Iss. 1; p. 13-16 (4) [on LEARN]
13. Klein, G. (2004) The Power of Intuition – How to use your gut
feeling to make better decisions at work. Chapter 2: a Case study
on Intuition. First Currency Paperback Ed. (4)
14. Hayashi, A. M. (2001). When to Trust Your Gut. Harvard Business
Review, Feb 2001. pp. 58-65
15. Coyne, K. P., Clifford, P. G. and Dye, R. (2007). Breakthrough
thinking from inside the box. Harvard Business Review, December,
2007, 71-78 (8)
16. **GOODWIN, P. & WRIGHT, G. 2009. Decision Analysis for
Management Judgment. Chapter 10. (pp 237-263) Heuristics and biases
in probability assessments. John Wiley and Sons
17. Daniel Kahneman, Dan Lovallo, and Olivier Sibony: Before You
Make That Big Decision… Harvard Business Review, June, 2011,
71-751-608 (10)
18. Gigerenzer, G. (2005): I think, Therefore I Err. Social
Research. Vol 72. No 1. p.195-218 (24)
19. Camillus, J. C.(2008) Strategy as a wicked problem. HBR, May
2008, 99-106 (8)
Case studies will be provided at the beginning of the course on
LEARN.
Dec Psy / ISUP2013 / Konczey
version: April 2013 page 4
Recommended readings:
Harvard Business Essentials, Decision Making: 5 Steps to Better
Results by Business Essentials Harvard (Paperback - Jan 31,
2006)
Ariely, Daniel. (2010) Predictably irrational (Expanded edition),
Harper Perennial
Baron, Jonathon. (2008) Thinking and Deciding (4th Ed). Cambridge
University Press.
Stanovich, Keith E. (2010) Decision making and rationality in the
modern world. Oxford University Press.
The book used for the class: Gary Klein (2009) Streetlights and
Shadows: Searching for the Keys to Adaptive Decision Making. A
Bradford Book The MIT Press. Cambridge, MA
Compendium
1. Noel M. Tichy and Warren G. Bennis: Making Judgment Calls - The
ultimate act of leadership. Harvard Business Review, Oct 2007. pp.
94-101 (9)
2. Ashraf, N., Camerer, C. F., & Loewenstein, G (2005). Adam
Smith, Behavioral Economist. Journal of Economic Perspectives, 19
(13), 131–145.
3. Kirby, L. Psychological Type and the Myers-Briggs Type
Indicator. in Developing Leaders: Research and Applications in
Psychological Type and Leadership Development. Davies-Black
Publishing. California (15)
4. Senge P. Mental Models (1992) adapted from Chapter 10 Senge: The
Fifth Discipline: The Art and Practice of the Learning Organization
(New York: Doubleday/Currency) (12)
5. Arnold, J. and Randall, R. (2010): Stress and Well-Being ad
Work. in Work Psychology: Understanding Human Behavior at the
Workplace. 5th Ed. Pearson (34)
6. Mintzberg, H., Westley, F. (2001); Decision making: It's not
what you think. MIT Sloan Management Review; Cambridge; Spring
2001; Vol: 42; Issue: 3; Page: 89-93 (5)
7. *Cooksey, R. W. (2000). Mapping the texture of managerial
decision making: A complex dynamic decision perspective. Emergence,
2 (2). 102-122 (21) [on LEARN]
8. Snowden, D.J., and Boone, M. E. (2007) A leader’s framework for
decision making. Harvard Business Review, November 2007, 69-76
(8)
9. Harvey, J. B. (1988). The Abeline Paradox: The management of
agreement. Organizational Dynamics, 1988 Summer, pp. 17-43
(12)
10. Eugene Sadler-Smith and Erella Shefy: The intuitive executive:
Understanding and applying ‘gut feel’ in decision-making. Academy
of Management Executive, 2004, Vol. 18, No. 4
11. Robert, B, and Lajtha, C (2002). A new approach to crisis
management. Journal of Contingencies and Crisis Management. Vol
10., No 4. pp 181-191 (11)
12. *Matzler, K., Bailom, F., Mooradian, T. A.(2007) Intuitive
Decision Making. MIT Sloan Management Review. Cambridge: Fall 2007.
Vol. 49, Iss. 1; p. 13-16 (4) [on LEARN]
13. Klein, G. (2004) The Power of Intuition – How to use your gut
feeling to make better decisions at work. Chapter 2: a Case study
on Intuition. First Currency Paperback Ed. (4)
14. Hayashi, A. M. (2001). When to Trust Your Gut. Harvard Business
Review, Feb 2001. pp. 58-65
15. Coyne, K. P., Clifford, P. G. and Dye, R. (2007). Breakthrough
thinking from inside the box. Harvard Business Review, December,
2007, 71-78 (8)
16. **GOODWIN, P. & WRIGHT, G. 2009. Decision Analysis for
Management Judgment. Chapter 10. (pp 237-263) Heuristics and biases
in probability assessments. John Wiley and Sons
17. Daniel Kahneman, Dan Lovallo, and Olivier Sibony: Before You
Make That Big Decision… Harvard Business Review, June, 2011,
71-751-608 (10)
18. Gigerenzer, G. (2005): I think, Therefore I Err. Social
Research. Vol 72. No 1. p.195-218 (24)
19. Camillus, J. C.(2008) Strategy as a wicked problem. HBR, May
2008, 99-106 (8)
Case studies will be provided at the beginning of the course on
LEARN.
Dec Psy / ISUP2013 / Konczey
version: April 2013 page 4
Recommended readings:
Harvard Business Essentials, Decision Making: 5 Steps to Better
Results by Business Essentials Harvard (Paperback - Jan 31,
2006)
Ariely, Daniel. (2010) Predictably irrational (Expanded edition),
Harper Perennial
Baron, Jonathon. (2008) Thinking and Deciding (4th Ed). Cambridge
University Press.
Stanovich, Keith E. (2010) Decision making and rationality in the
modern world. Oxford University Press. |
Last updated on
07-05-2013