MODULE SPECIFICATION KEY FACTS. Behavioural Decision-Making

Transcription

1 MODULE SPECIFICATION KEY FACTS Module name Behavioural Decision-Making Module code MS3205 School Cass Business School Department or equivalent UG Programme UK credits 15 ECTS 7.5 Level 6 Delivery location (partnership programmes only) MODULE SUMMARY Module outline and aims Having a wise judgment and being able to make effective decisions are two crucial skills for managers. This module is designed to help students become effective decisionmakers who are able to make the most of their two modes of thought: system 1, which is fast, and allows us to make fast intuitive decisions, and system 2, which is slower, and more analytical. The module introduces students to key findings from decision-making research. It examines how individuals (e.g. managers, consumers, investors, entrepreneurs) and groups of individuals (e.g., top management teams) make strategic decisions under uncertainty; as well as the factors that affect their decision-making processes. It adopts a descriptive and prescriptive approaches which means that it reviews research that shows how individuals actually make decision, and also research that show how they can improve their decision-making skills and become wise decision-makers. The module has two main aims: i) developing awareness of the theories and evidence from psychology and behavioural economics on decision-making; and ii) teaching effective decision-making by equipping students with decision-making tools and frameworks. Content outline Indicative list of topics covered in the module include: The psychology of decision-making: what is a decision? How do we make decisions? Thinking processes, and modes of thought (i.e., systems 1 and 2); rationality, bounded rationality and intuition; perception, memory and context; Models of decision-making under risk, such as Expected Utility Theory (EUT),

2 Prospect Theory and their implications for effective managerial decision-making; Heuristics and common cognitive biases in individual decision-making (e.g., availability heuristics and bounded awareness, representativeness heuristics, confirmation heuristics); Framing, the reversal of preferences (including endowment effect) and mental accounting Motivational and emotional influences on individual decision-making; Intertemporal choice and decisions about the future (discounted utility model) Group decision-making and common traps in decision-making (e.g., overconfidence; group think) Fairness, social preferences and ethics in decision-making (including social dilemmas) Negotiation Risk perception and risk communication Improving decision-making, debasing techniques, and the organizational side of managerial decision-making (choice architecture and nudges) Pre-requisite This module does not require prior knowledge. WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding Know the thinking processes that underlie judgment and decision-making process, and the pros and cons of both rational (analytical) and intuitive decisionmaking (system 1 and system 2); Understand the most common errors in managerial decision making (both at the individual and group levels); why these biases happen; Learn about the academic field of judgment and decision-making, its major theories, results, and debates. Skills Acquire practical skills for improving your own judgments and making effective decisions; Know how to overcome decision-making biases in order to improve the quality of individual and group decision-making, thanks to specific decision tools and procedures, and the design of appropriate choice architectures; Reflect on their own thinking and decision-making style; Effectively negotiate; Manage and communicate risk efficiently; Deal with social dilemmas and ethical decisions. Values and attitudes Be aware of the way your colleagues and collaborate make decisions;

3 Develop ethical thinking about decision-making; Be more efficient at making decisions. HOW WILL I LEARN? There will be ten 2-hour sessions, which will be made of part lecture, interactive discussion about the readings, and exercises related to decision-making. There will be an additional session in week 11 for revision purposes. Teaching pattern: Teaching component Teaching type Contact (scheduled) Self-directed study (independent) Placement Lecture Lecture Total student learning Totals WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments You will be assessed (70%) by end of module closed-book examination of 2h15min which is taken in the next university examination period. You will also be required to submit a group report accounting for 30% of the module mark. Assessment pattern: Assessment component Exam Coursework Assessment type Written Exam Written assignment Weighting Minimum qualifying mark Pass/Fail? 70 0 N/A 30 0 N/A Assessment criteria

4 Assessment Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate in order to complete an assessment successfully and Grade-Related Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria and Grade-Related Criteria for module assessments will be made available to students prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following an assessment, students will be given their marks and feedback in line with the Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The Pass mark for the module is 40%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST Bazerman M, D. Moore (2009) Judgment in Managerial Decision-Making:. John Wiley & Sons, 7 th Edition Hodgkinson GP, Sadler-Smith E, Burke LA, et al. (2009) Intuition in organizations: Implications for strategic management. Long Range Planning 42(3): Kahneman D. (2011) Thinking Fast and Slow: Penguin. Kahneman D and Tversky A. (1979) Prospect theory: an analysis of decision under risk. Econometrica 47(2): Plous, S. ( The psychology of judgment and decision-making. McGrawHill Thaler RH and Sunstein CR. (2008) Nudge. Improving decisions about health, wealth, and happiness: Yale University Press. Version: 1.0 Version date: April 2015 For use from: Appendix: see 051/href,JACS3.html/ for the full list of JACS codes and descriptions CODES

5 HESA Cost Centre Description Price Group 133 Business & Management D Studies JACS Code Description Percentage (%) N210 The specific techniques for 100 managing an organisation.