Written Reflection. Snehapriya Bharatha. Mba 505: Foundations
1334 WordsJan 27, 20176 Pages
MBA 505: Foundations of Management
January, 26, 2017
Section One: Reflection
Decision making is a challenging job which involves following rules and regulations to achieve exceptional results. Performance of multiple evaluations increases the success rate of the final outcome. Faulty decision-making leads to deteriorating results, dismissal from a company or business collapse. Overconfidence bias, hindsight bias, anchoring bias, framing bias and escalation of commitment are examples of faulty decision-making.
Judgement on a certain idea relies on an individual’s knowledge rather than the accuracy of the given event, overconfidence bias. One’s presumption of their knowledge…show more content…
Certain television advertisements present framing bias to gain more customers to purchase their products. Advertisers invest a large portion of the time presenting the audience how beneficial their product is and at the end, with in five seconds, they announce all the side effects. Viewer might be “wowed” by the product itself and pays less attention to the flaws, helping the advertisers achieve their goal.
Continuous dedication of time, money and energy towards a failing product, escalation of commitment. A company that was worth trillions of dollars in the year 1990 and drops to only thousand dollars in the year 2000 due to a major business failure. Yet, business officials make continuous effort to run the business that is at stake of being bankrupt. Not only the resources will be wasted, but also no one would want to invest in that the company resulting in no profits. Eventually, leading the company to be bankrupt in the near future.
Section two: Article Comparison
Faulty decision can be easily made when an individual is overly confident about themselves. They are intended to make an impulsive decision; hence, they search for minimal help in making major decisions (Chira, Adams & Thornton, 2008, p. 12). Chira et al. (2008) conducted a study on students in reference to overconfidence bias. The study states that students are supposed to imagine they failed the last exam and were given an opportunity to retake