Organizational Behavior Reading: Decision Making

Francesca  Gino; Max   Bazerman; Katherine   Shonk

Other Teaching and Training Material | 2016

Organizational Behavior Reading: Decision Making

by Francesca Gino, Max Bazerman and Katherine Shonk

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;

Language: English

Format: Electronic

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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.

By 2013, the U.S. wireless industry was in the midst of a costly transition. As consumers began to embrace more sophisticated mobile devices, the industry's four main players spent heavily to improve their infrastructures for providing reliable high-speed data services. T-Mobile, the smallest of the four major carriers, lacked the scale of its competitors and risked falling further behind in the contest for market share. Faced with this daunting business environment, T-Mobile's new CEO declared war on the rest of the industry, decrying competitor pricing practices and upending the traditional contract-based business model. This case provides background information on the state of the wireless industry in 2013 and follows T-Mobile's early steps to transform its market position.

Article | Organizational Behavior and Human Decision Processes

Conversational Receptiveness: Expressing Engagement with Opposing Views

M. Yeomans, J. Minson, H. Collins, H. Chen and F. Gino

We examine “conversational receptiveness”—the use of language to communicate one’s willingness to thoughtfully engage with opposing views. We develop an interpretable machine-learning algorithm to identify the linguistic profile of receptiveness (Studies 1A-B). We then show that in contentious policy discussions, government executives who were rated as more receptive—according to our algorithm and their partners but not their own self-evaluations—were considered better teammates, advisors, and workplace representatives (Study 2). Furthermore, using field data from a setting where conflict management is endemic to productivity, we show that conversational receptiveness at the beginning of a conversation forestalls conflict escalation at the end. Specifically, Wikipedia editors who write more receptive posts are less prone to receiving personal attacks from disagreeing editors (Study 3). We develop a “receptiveness recipe” intervention based on our algorithm. We find that writers who follow the recipe are seen as more desirable partners for future collaboration and their messages are seen as more persuasive (Study 4). Overall, we find that conversational receptiveness is reliably measurable, has meaningful relational consequences, and can be substantially improved using our intervention.

Keywords: receptiveness; natural language processing; disagreement; Interpersonal Communication; Relationships; Conflict Management;

Citation:

Yeomans, M., J. Minson, H. Collins, H. Chen, and F. Gino. "Conversational Receptiveness: Expressing Engagement with Opposing Views." Organizational Behavior and Human Decision Processes 160 (September 2020): 131–148. View Details

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Social exclusion is a painful yet common experience in many people’s personal and professional lives. This research demonstrates that feeling authentic serves as a buffer against social rejection, leading people to experience less social pain. Across five studies, using different manipulations of authenticity, different paradigms to create social exclusion, and different measures of feeling rejected, we found that experiencing authenticity led participants to appraise situations as less threatening and to experience lower feelings of rejection from the social exclusion. We also found that perceived threat explains these effects. Our findings suggest that authenticity may be an underused resource for people who perceive themselves to be, or actually are, socially excluded or ostracized. This research has diverse and important implications: Interventions that increase authenticity could be used to reduce perceptions of threatening situations and the pain of impending exclusion episodes in situations ranging from adjustment to college to organizational orientation programs.

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Organizational Behavior Reading: Decision Making

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