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.

Working Paper | 2019

Veil-of-Ignorance Reasoning Favors the Greater Good

Karen Huang, Joshua D. Greene and Max Bazerman

The “veil of ignorance” is a moral reasoning device designed to promote impartial decision-making by denying decision-makers access to potentially biasing information about who will benefit most or least from the available options. Veil-of-ignorance reasoning was originally applied by philosophers and economists to foundational questions concerning the overall organization of society. Here we apply veil-of-ignorance reasoning in a more focused way to specific moral dilemmas, all of which involve a tension between the greater good and competing moral concerns. Across six experiments (N = 5,785), three pre-registered, we find that veil-of-ignorance reasoning favors the greater good. Participants first engaged in veil-of-ignorance reasoning about a specific dilemma, asking themselves what they would want if they did not know who among those affected they would be. Participants then responded to a more conventional version of the same dilemma with a moral judgment, a policy preference, or an economic choice. Participants who first engaged in veil-of-ignorance reasoning subsequently made more utilitarian choices in response to a classic philosophical dilemma, a medical dilemma, a real donation decision between a more vs. less effective charity, and a policy decision concerning the social dilemma of autonomous vehicles. These effects depend on the impartial thinking induced by veil-of-ignorance reasoning and cannot be explained by a simple anchoring account, probabilistic reasoning, or generic perspective-taking. These studies indicate that veil-of-ignorance reasoning may be a useful tool for decision-makers who wish to make more impartial and/or socially beneficial choices.

Keywords: policy-making; procedural justice; Ethics; Decision Making; Fairness;

Citation:

Huang, Karen, Joshua D. Greene, and Max Bazerman. "Veil-of-Ignorance Reasoning Favors the Greater Good." Working Paper, July 2019. View Details

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Managers often engage in risk-averse behavior, and economists, decision analysts, and managers treat risk aversion as a preference. In many cases, acting in a risk-averse manner is a mistake, but managers can correct this mistake with greater reflection. This article provides guidance on how individuals and organizations can move toward greater reflection and a more profitable aggregate portfolio of decisions. Inconsistency in risk preferences across decisions is a costly mistake for both individuals and for organizations.

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Judgment in Managerial Decision Making

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