copyright © 1999 houghton mifflin company. all rights reserved. 6 - 0 e. frank harrison fifth...

Copyright © 1999 Houghton Mifflin Company. All rights reserved. 6 - 1

E. FRANK HARRISON

Fifth Edition

The Managerial

Decision-Making Process


The Managerial Decision-Making ProcessThe Managerial Decision-Making ProcessFifth EditionFifth Edition

The Managerial Decision-Making ProcessThe Managerial Decision-Making ProcessFifth EditionFifth Edition

Author: E. Frank Harrison, Ph.D.Author: E. Frank Harrison, Ph.D.

Slides by Monique A. Pelletier, Ph.D.Slides by Monique A. Pelletier, Ph.D.

Author: E. Frank Harrison, Ph.D.Author: E. Frank Harrison, Ph.D.

Slides by Monique A. Pelletier, Ph.D.Slides by Monique A. Pelletier, Ph.D.


The Psychology of The Psychology of Decision Making Decision Making

Chapter 6Chapter 6


Personality in Decision MakingPersonality in Decision Making

Biological, subconscious and Biological, subconscious and hereditary forceshereditary forces

Common traits and unique Common traits and unique individualityindividuality

Holistic approaches to personalityHolistic approaches to personality Empirical perspectives on personalityEmpirical perspectives on personality Personality effects on decision makingPersonality effects on decision making


Risk Acceptance/Avoidance Risk Acceptance/Avoidance

Empirical perspectivesEmpirical perspectives A conceptual model of risk A conceptual model of risk

acceptance/avoidanceacceptance/avoidance


Figure 6.1 A Conceptual Model of Risk Acceptance/AvoidanceFigure 6.1 A Conceptual Model of Risk Acceptance/Avoidance

Propensityfor riskacceptance

F

GC

AEDI H

B

J Propensityfor riskavoidance

Probability of success

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tcom

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Perception in Decision MakingPerception in Decision Making The perceptual processThe perceptual process Characteristics of the perceiver and the Characteristics of the perceiver and the

perceivedperceived Forming impressions of others:Forming impressions of others:

stereotypingstereotyping halo effecthalo effect

projectionprojection perceptual defenseperceptual defense

Situational influences on perceptionSituational influences on perception Empirical perspectives on perceptionEmpirical perspectives on perception


Subconscious Influences on Subconscious Influences on Decision MakingDecision Making

Freudian influences:Freudian influences:

idid egoego superegosuperego

Mind levels:Mind levels:

conscious conscious subconscioussubconscious preconsciouspreconscious

Intuition:Intuition:

effects on decision makingeffects on decision making


Psychological Parameters in Decision Psychological Parameters in Decision MakingMaking

Personality influences decision making.Personality influences decision making. There is a human tendency to avoid There is a human tendency to avoid

uncertainty and highly risky situations.uncertainty and highly risky situations. Perception pervades the entire process Perception pervades the entire process

of decision making.of decision making. Preconscious and subconscious Preconscious and subconscious

thoughts invariably influence the thoughts invariably influence the decision parameters.decision parameters.


Psychological Parameters in Decision Psychological Parameters in Decision Making Making (cont’d)(cont’d)

Knowing one’s self is the best way to Knowing one’s self is the best way to counter psychological parameters.counter psychological parameters.

The psychology of decision making The psychology of decision making militates for:militates for:

a judgmental strategy,a judgmental strategy,

bounded rationality, andbounded rationality, and

a satisficing outcome.a satisficing outcome.

copyright © 1999 houghton mifflin company. all rights reserved. 6 - 0 e. frank harrison fifth...

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