Management Assignment

Question1

When a manager makes a decision, not make a decision that they wants only. Making a good decision is very important and make sure manager will not make decision error. There are eight of the twelve decision-making biases that managers may exhibit. There are anchoring effect, selective perception, self-serving bias, confirmation bias, overconfidence bias, availability bias, hindsight Bias and framing Bias.

Firstly, the anchoring effect describes when decision makers fixate on initial information as a starting point and then, once set, fail to adequately adjust for subsequent information. First impressions, ideas, prices, and estimates carry unwarranted weight relative to information received later. For example if a person must make a decision about whether the Mississippi River is longer or shorter than 20 miles, he will use the figure of 20 miles as a reference point in coming to a conclusion. Behavioural scientists call the numerical figure that people use to make decisions an anchor. For example, the initial price offered for a used car sets the standard for the rest of the negotiations, so that prices lower than the initial price seem more reasonable even if they are still higher than what the car is really worth.

Selective Perception is the process by which individuals perceive what they want to in media messages and disregard the rest. It is a broad term to identify the behavior all people exhibit to tend to "see things" based on their particular frame of reference.Selective perception may refer to any number of cognitive biases in psychology related to the way expectations affect perception. Human judgment and decision making is distorted by an array of cognitive, perceptual and motivational biases, and people tend not to recognize their own bias, though they tend to easily the operation of bias in human judgment by others. For example, say you’re trying to lose weight. When you were younger you were on the track...