s. Which option would you prefer: choosing your own lottery ticket or accepting a ticket from the shopkeeper?
Logically, it makes no difference to the probability of winning, yet you may prefer to choose the ticket. Why?
The readings this week focus on how and why organisational leaders sometimes make poor decisions, and how poor decisions may be made because decision makers have an illusion of control.
Given this week’s required readings and your further research, complete a 850-1,000 word Literature Synthesis.
• Critically evaluates key arguments from both a scholarly and a practitioner-oriented point of view;
• Critiques underlying assumptions evident in the articles and identifies any new insights for practice and scholarship;
• Extends the thinking and application of your review with additional resources and experiential analyses.

• Please add introduction, heading, subheading, and Conclusion. Citation and References year 2000 and up.

• Bazerman, M. H. and Moore, D. A. (2008) Judgment in Managerial Decision-making, 7th ed. Chichester: Wiley.
  Copyright 2008 by John Wiley & Sons Inc. – Books. Reprinted by permission of John Wiley & Sons Inc. – Books via the Copyright Clearance Center.
  • Chapter 2, ‘Common Biases’ (pp.35-37)

    This chapter excerpt highlights the causes and effects of overconfidence in decision-making. The authors specifically address how overconfidence can occur automatically and offer options for correcting it before decision error.

• Drummond, H. (2001) The Art of Decision-making: Mirrors of Imagination, Masks of Fate. Chichester: Wiley.
  • Chapter 10, ‘High Tides and Green Grass: The Illusion of Control’

    This chapter examines the illusion of control in decision-making and how decision makers often develop overconfidence without acknowledging potential risks. The author uses recent organisational errors to highlight the effects of such an illusion and overconfidence in decision-making.

• Hammond, J. S., Keeny, R. L. and Raiffa, H. (1998) ‘The hidden traps of decision-making’, Harvard Business Review, 76(5), pp.47-58.
  This article identifies the various heuristics and psychological traps which play both positive and negative roles in decision-making. The authors provide a means of altering approaches to decision-making to avoid these traps as well as address the issue that decision-makers can fall victim to more than one trap.
• Document: Introduction to Learning Set Participation (PDF Document)

  This handout provides a description of the Learning Set concept as well as expectations for your participation and grading. In addition, instructions for locating your Learning Set in the online classroom and posting your introduction are included.

SUPPLEMENTAL RESOURCES

• Bazerman M. H. and Neale, M. A. (1982) ‘Improving negotiation effectiveness under final offer arbitration: the role of selection and training’, Journal of Applied Psychology, 67(5), pp.543-548.
• Crocker, J. and Park, L.E. (2004) ‘The costly pursuit of self-esteem’, Psychological Bulletin, 130(3), pp.392-414.
• de Bono, E. (1999) Six Thinking Hats. New York, NY: Bay Back Books.

  This text is the complete discussion of de Bono’s tool for thinking in decision-making and problem solving.

• Langer, E.J. (1975) ‘The illusion of control’, Journal of Personality and Social Psychology, 32, pp.311-328.
• Pfeffer, J. and Fong, C.T. (2005) ‘Building organization theory from first principles: the self-enhancement motive and understanding power and influence’,Organization Science, 16(4), pp.372-388.
• Taylor, S. E. and Brown, J. (1988) ‘Illusion and well-being: a social psychological perspective on mental health’, Psychological Bulletin,103(2), pp.193-210.