Judgment in Managerial Decision Making

Max   Bazerman; Don A. Moore

Book | 2013

Judgment in Managerial Decision Making

by Max Bazerman and Don A. Moore

Abstract

Is your judgment influenced by personal biases? In situations requiring careful judgment, we're all influenced by our own biases to some extent. But, with Judgment in Managerial Decision Making, you can learn how to overcome those biases to make better managerial decisions. The text examines judgment in a variety of organizational contexts and provides practical strategies for changing your decision-making processes and improving these processes so that they become part of your permanent behavior. Throughout, you'll find numerous hands-on decision exercises and examples from the authors' extensive executive training experience that will help you enhance the quality of your managerial judgment. Past editions have been used in top universities, in business schools, and in public policy, psychology, and economics classes. In addition, the text has been widely recognized by practitioners in the world of behavioral finance.

Keywords: Decision Choices and Conditions; Judgments; Management Practices and Processes; Management Skills; Managerial Roles; Performance Improvement; Prejudice and Bias;

Format: Print

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Citation:

Bazerman, Max, and Don A. Moore. Judgment in Managerial Decision Making. 8th ed. John Wiley & Sons, 2013.

Article | Academy of Management Perspectives | February 2019

Bounded Ethicality and Ethical Fading in Negotiations: Understanding Unintended Unethical Behavior

McKenzie Rees, Ann E. Tenbrunsel and Max Bazerman

The business scandals in the past several decades led to the rising importance of ethics as a topic central to management scholarship. Behavioral scientists in particular were attracted to the topic in far greater numbers, and the study of ethical decision-making emerged as a core subfield (Messick & Tenbrunsel, 1996). This paper draws on that framework and applies it to negotiations, arguing that not all unethical behavior is intentional; rather, negotiators fall prey to bounded ethicality, engaging in behavior that is contradictory to their values without realizing they are doing so. We further argue that ethical fading—when individuals do not “see” the ethical implications of the situation or their action—is central to explaining why this occurs. Relying on past empirical research, we identify negotiation “cues” that have been linked to unethical behavior and explore how they make a negotiator particularly vulnerable to ethical fading, resulting in subsequent unethical behavior. We discuss several opportunities for future research in the negotiation discipline and other disciplines that draw on motivated social exchange or assume intentionality and conclude with a call for scholars to define normative standards as they pertain to negotiator ethics.

Keywords: Ethics; Behavior; Negotiation; Situation or Environment; Perception;

Citation:

Rees, McKenzie, Ann E. Tenbrunsel, and Max Bazerman. "Bounded Ethicality and Ethical Fading in Negotiations: Understanding Unintended Unethical Behavior." Academy of Management Perspectives 33, no. 1 (February 2019): 1–17. View Details

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Howard Raiffa was a role model, friend, and inspiration. He transformed the field of negotiation, and he transformed my career. This brief article provides a recollection of how Howard revolutionized the field of negotiation and how those insights are now affecting broader areas of the social sciences. Howard received the 1999 Lifetime Achievement Award from the International Association for Conflict Management.

In this tribute to the 2007 recipient of the Jeffrey Z. Rubin Theory‐To‐Practice Award from the International Association for Conflict Management (IACM), we celebrate Linda Babcock's contributions to diverse lines of research, her tireless and effective efforts to put the insights of her research into practice, and at a personal level, the impact she has had on each of our lives. Innovative ideas and novel methods have been the hallmarks of Linda's research on diverse topics: the impact of self‐serving conceptions of fairness on negotiations, the labor supply behavior of cab drivers, the impact of damage caps on settlements, the propensity of men and women to initiate negotiations, and the readiness of each gender to volunteer for, and work on “nonpromotable tasks.” Linda won this award, however, not only for her path‐breaking academic research, but also for her interest in and ability to convert it into actionable initiatives. From founding the Program for Research and Outreach on Gender Equity in Society (PROGRESS), whose mission is to develop tools to teach women and girls how to harness the power of negotiation, to her leadership of the Carnegie Mellon Leadership and Negotiation Academy for Women, Linda shows how academics can play a leading role in translating theory into practice.

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