Judgment in Managerial Decision Making (5th Edition)

Rating:
Summary: A good primer on Judgement and Decision Making
Review: Fantastic introduction to the field of judgement. I like the following about the book:

1) Concise, and to the point
2) nly a few examples. I imagine that most people reading this book will be fairly theoretical thinkers, so won't need many examples
3) Covers a wide range of judgemental fallacies. A good book to get a feel for the field.

Rating:
Summary: Great Overview
Review: Fantastic introduction to the field of judgement. I like the following about the book:

1) Concise, and to the point
2) nly a few examples. I imagine that most people reading this book will be fairly theoretical thinkers, so won't need many examples
3) Covers a wide range of judgemental fallacies. A good book to get a feel for the field.

Rating:
Summary: Makes you think about your own decision making process.
Review: In his book, Judgment in Managerial Decision Making, Max Bazerman applies behavioral decision research into an organizational setting. He acknowledges that even though the rational decision-making process will lead to optimal decisions, the process is too time consuming to use in reality. Therefore, managers must rely on their intuitive judgment to find satisficing solutions to the problems they confront on a daily basis. The first half of the book examines the reader's judgment by explaining how the utilization of heuristics, rules of thumb used by managers to simplify problem solving in complex situations, can lead to irrational decisions when inappropriately applied. Cognitive biases are the cause of irrational decisions when heuristics are used improperly. In addition, Bazerman also offers an analysis of how uncertainty, escalation of commitment, and concern for fairness affect managerial decision-making. The second half of the book addresses how the decision-making process relates to both two-party and multiparty situations. Bazerman discusses the difficulty individuals face when trying to act rationally in competitive negotiations. He also describes the complexities work groups or project teams face when they hold a cooperative as well as a competitive position. The final chapter presents four strategies for improving the decision-making process. The first and second strategies are eliminating biases, and acquiring experience and expertise through feedback on the outcome of previous decisions. Both strategies are designed to alter intuitive responses to various decision-making situations. The third and fourth strategies offer techniques for improving decisions using linear models and accounting for the biases that influence the decisions of others. In his conclusions, Bazerman states that "the manager is likely rewarding behaviors that may not be functional in the future" by rewarding results rather than the decision-making process. Therefore, he recommends that managers reward employees for good decisions rather than results. Improving judgment and decision-making abilities is a step in the right direction towards making better decisions.

Rating:
Summary: Strategies to improve rational decision-making
Review: In Max Bazerman's novel, Judgment in Managerial Decision Making, he outlines particular strategies and concepts that managers should use in their decision-making process. Through his examples and easy- -to-read text, Bazerman does an excellent job of taking the reader on a journey to improved decision making, while at the same time, keeping the reader's interest. This first and second point of view writing style makes the novel more personal and easy to relate to. His contemporary examples and scenarios clearly represent the message he is trying to convey. Bazerman discusses: - Rational decision making process - Biases that affect managers' judgments - Psychological factors that explain how managers respond to uncertainty - Why managers make nonoptimal decisions to justify a previous commitment - Inconsistencies of judging fairness - Motivational biases - Optimization in two-party negotiations - Judgments in multiparty negotiations - Additional decision making strategies After reading Judgment in Managerial Decision Making, the reader will be able to make more rational managerial decisions. The concepts Bazerman explains will help all readers improve their decision-making process, even under the contraints of time, cost, intelligence, and perception.

Rating:
Summary: Summary - Judgment In Managerial Decision Making
Review: Max Bazerman had one central purpose in mind when he wrote his book, Judgment In Managerial Decision Making. He hoped to improve the judgment and decision making skills of his audience, whether they be managers of multi-billion dollar corporations or consumers deciding how much to offer a salesman for a new car. Through the use of vivid real-world examples Max Bazerman identifies systematic ways in which judgment and decision making skills deviate from rationality under uncertain conditions. The end result is that the reader can readily comprehend the concepts outlined in the book and easily apply them to his or her own life.

The only major weakness in the book has to do with its discussion of the multiparty decision-making process. Because of the complex dynamics of these multiparty situations, Bazerman is forced to limit his coverage to only a select number of issues that he believes are especially pertinent to understanding decision making among several groups. Academics have also spent less formal research time on multiparty decision-making versus two-party and individual decision making. Therefore, the number of real-world contemporary examples are quite limited, making the reader less inclined to believe the results.

Rating:
Summary: A Real Jewel in Decision Making Theory
Review: There are many quantitative books on Decision Making Theory but this book deals basically with the subjective aspects of Decision Making. I used it at the University of São Paulo as textbook for a graduate class on Decision Making under Uncertainty together with Clemen & Reilly's book "Making Hard Decisions".

Bazerman's focus on common decion biases and heuristics makes us think a lot about how we make decisions and normally has nothing to do with rational quantitative "perfect world" decision making normally teached at business schools. Do read this book if Decision Making Theory is important for you, this is really a classic on this subject!!!! With less than 200 pages you really can't afford not reading it.

Rating:
Summary: A Real Jewel in Decision Making Theory
Review: There are many quantitative books on Decision Making Theory but this book deals basically with the subjective aspects of Decision Making. I used it at the University of São Paulo as textbook for a graduate class on Decision Making under Uncertainty together with Clemen & Reilly's book "Making Hard Decisions".

Bazerman's focus on common decion biases and heuristics makes us think a lot about how we make decisions and normally has nothing to do with rational quantitative "perfect world" decision making normally teached at business schools. Do read this book if Decision Making Theory is important for you, this is really a classic on this subject!!!! With less than 200 pages you really can't afford not reading it.