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by Max H. Bazerman
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Every day, managers make decisions that shape the futures of their organizations, their employees, and themselves. They decide whom to hire, which projects to fund, when to cut losses, how to price products, and how to negotiate with partners. Most of these managers are intelligent, experienced, and well-intentioned. They believe they are making rational choices based on careful analysis of available information.
**Author:** Max H. Bazerman
**Estimated Reading Time:** 45 minutes
**What You'll Learn:**
- Why smart people make predictable and preventable decision errors - How cognitive biases shape everything from hiring to investing to negotiation - The hidden ways framing and emotion distort your judgment - Why we throw good money after bad and how to stop - How to create value in negotiations instead of just fighting over it - Practical strategies for making better decisions under pressure
**Who This Book Is For:**
Managers, executives, entrepreneurs, investors, negotiators, and anyone who makes consequential decisions under conditions of uncertainty. If you have ever looked back at a decision and wondered what you were thinking, this book will show you exactly what happened and how to prevent it from happening again.
Every day, managers make decisions that shape the futures of their organizations, their employees, and themselves. They decide whom to hire, which projects to fund, when to cut losses, how to price products, and how to negotiate with partners. Most of these managers are intelligent, experienced, and well-intentioned. They believe they are making rational choices based on careful analysis of available information. Yet the evidence tells a different story. Decades of research in behavioral decision theory reveal that even the brightest and most experienced decision-makers fall prey to predictable patterns of error. These errors are not random. They are systematic. They occur because the human mind relies on mental shortcuts that work well enough in many situations but fail catastrophically in others. And perhaps most troubling, people are typically unaware that they are relying on these shortcuts at all. Max Bazerman has spent his career studying how managers actually make decisions, as opposed to how they think they make decisions. His research, along with that of his colleagues in the field of behavioral economics, has transformed our understanding of judgment and choice. The central finding is both humbling and empowering. Humbling because it reveals that none of us are as rational as we believe. Empowering because once we understand the patterns of error, we can design strategies to overcome them. The problem is not a lack of intelligence. In fact, research shows that people who score highly on intelligence tests are just as vulnerable to many decision biases as those with lower scores. The problem is that our minds are wired to take shortcuts. These shortcuts, called heuristics, serve us well when we need to make quick decisions in familiar situations. But in complex, high-stakes environments, they can lead us astray. Consider the manager who continues to fund a failing project because the company has already invested millions in it. Or the investor who holds onto a losing stock because selling…
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Get the complete summary in the appYour intuition is not always reliable. It is shaped by heuristics that can lead you astray in predictable ways.
The way a decision is framed can change your choice, even when the underlying facts are identical.
Losses hurt more than gains feel good. This asymmetry shapes your risk preferences.
Being smart does not protect you from biases. Intelligence and good judgment are not the same thing.
Sunk costs are irrelevant. Focus on future costs and benefits, not past investments.
Good people can make unethical decisions without realizing it. Ethical blind spots affect everyone.
"Judgment In Managerial Decision Making" is a strong fit if you want practical ideas around business, psychology, management, especially themes like your intuition is not always reliable. it is shaped by heuristics that can lead you astray in predictable ways; the way a decision is framed can change your choice, even when the underlying facts are identical. The MinuteRead summary distills these concepts into a focused read, whether you're deciding whether to buy the book or applying its lessons at work.
Motivated to help readers with "Heuristics provide time-pressured managers and other professionals with a simple way of dealing with a, Max H. Bazerman wrote “Judgment In Managerial Decision Making” to package those ideas for a fast, focused read. In “Judgment In Managerial Decision Making”, Max H. Bazerman focuses on "Heuristics provide time-pressured managers and other professionals with a simple way of dealing with a. Through “Judgment In Managerial Decision Making”, Max H. Bazerman distills …
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