Business%20Skills

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Business Skills

• Decision Making Problem solving
• Negotiation
• Planning
• Evaluating Performance
• Business strategy

Leadership Skills

• Motivating talent
• Developing communicating vision
• Goal setting
• Persuasion
• Persistence

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How todays competencies are taught
Reading/Lecture Experiential Exercise
Bazerman et al Group Project
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Cognitive Factors Leading to Poor Decisions
Using Relevant Information
Noticing Information
Sharing Information
Bounded Awareness
Poor decisions
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Not SHARING Information limits awareness which
leads to poor decisions
Not Sharing information
Bounded Awareness
Poor Decisions
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Consider Negotiation Exercise

• The best outcome could be that both parties got
  all the fruit that was available and saved on
  the bid

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Students Reflect on information sharing in
Negotiation Exercise

• Describe what information you didnt share AND
  explain how that led to a negative outcome
• OR
• Describe what information you shared AND explain
  how that led to a positive outcome

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Bounded Awareness
Not sharing information
Poor Decision

• What members do in groups
• Discuss common information because it is agreed
  upon rewarded with support
• Do not discuss unique information they have
• Do not seek out unique information that others
  may have

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Bounded Awareness
Not sharing information
Poor Decision
Information about all candidates given to all members Information about excellent candidates given to some members, information about not so excellent candidate is given to all members
Quality of candidate chosen Good Poor
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Students plan on information sharing in Group
Project

• How will you ensure that information is shared
  in the group project?
• common information
• unique information
• What steps have you already taken to ensure that
  information is shared in the group project

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Not using RELEVANT information limits awareness
which affects the quality of decisions
Not using relevant information
Bounded Awareness
Poor Decision Quality
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Students Reflect on using relevant information
in Negotiation Exercise

• What relevant information did you not use/share
  in the negotiation discussion AND explain how
  that led to a negative outcome
• OR
• What relevant information did you use in the
  negotiation discussion AND explain how that led
  to a positive outcome

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Not using relevant information
Bounded Awareness
Think of all the things that will make you happy Control Group
How much of your happiness depends on teams win? A little A lot
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Not using relevant information
Bounded Awareness
What percent of groups performance was due to your ideas? What percent of groups performance was due to each members ideas?
Self serving bias More Less
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Students plan on using relevant information in
Group Project

• How will you ensure that RELEVANT information is
  used in the group project?
• What steps have you already taken to ensure that
  RELEVANT information is used in the group project?

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Not NOTICING information limits awareness which
affects the quality of decisions
Not Noticing information
Bounded Awareness
Poor Decision Quality
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What affects whether you notice information?
Focus on certain types of information
Expectations about existing information
Gradual changes in environment
Amt of Information Noticed
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Expectations about information
Limits Information Noticed
Dangerous objects will appear 50 of time Dangerous Objects will appear 1 of time
Error Rate 7 30
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Limits Information Noticed
Focus on certain types of information
Those who were told to watch superimposed videos
of teams playing at different times AND who were
asked to count the number of passes between
members wearing the same jerseys did not notice
woman walking with open umbrella on court
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Limits Information Noticed
Gradual changes in environment
Gradually increased estimates to exaggerated number Suddenly increased estimates to exaggerated number
Likelihood of judging estimates as inflated Less More
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Students plan on how you will notice the
information that is out of your awareness during
the Group Project

• Give concrete examples of how you will ensure
  that you will notice information by enabling
  possibility of
• change your focus
• changing your expectations,
• monitoring degree of changes in environment

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Summary of Cognitive Factors that Can Inhibit
your Decision Quality

• Need to locate information that is out of your
  awareness to improve decision quality
• Locate out of awareness information by
• Perceiving it
• changing focus, changing expectations,
  environment type
• Using relevant bits
• Sharing it with each other

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Motivational biases to our judgments
Bias in judgments
Attachment
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How evidence supports the link
Attachment
Plaintiffs (in an accident) predicted that they
would receive larger awards from the judge than
did defendants
Bias in Judgment
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How evidence supports the link
Given a pay rate of 25 for 7 hrs, those who
worked 10 hrs thought they should be paid 35 for
10 hrs of work (equal hourly pay) whereas those
who worked 7 hrs thought the 10 hr workers should
be paid 30 (equal total pay)
Attachment
Bias in Judgment
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How evidence supports the link
Attachment
Sellers auditors were more biased than buyers
auditors despite an incentive for accuracy
Bias in Judgment
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Whats next..

• Theoretical Understanding via lecture on Bazerman
  et al Readings
• Cognitive motivational factors
• Practical Application of knowledge gained by
  doing/planning for the Group Project

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Potential Exam Questions on COGNTIVE biases in
Group Project

• How did your group fail/succeed in locating
  information out of awareness in terms of
• Noticing it
• focus, expectations, environmental changes
• Using relevant bits
• Sharing it

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Potential Exam Questions on MOTIVATIONAL biases
in Group Project

• How did attachment play a role in biasing group
  members judgments?
• OR
• How might you prevent the effects of attachment
  on judgments in your group project