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Using the making decision theory to explain the problem Uber meets Problems With Uber permittedaculture of sexual harassmentand retaliation against individuals Over3,000 reports of sexual

Using the making decision theory to explain the problem Uber meets

  1. Problems With Uber
  • permitted"aculture of sexual harassmentand retaliation" against individuals
  • Over3,000 reports of sexual assault
  • Internalprobe led to the firing of 20employees
  • Mostexperts blame Uber executives fornottaking actionon this issue

making decision theory:

Processes and biases

  • Framing
  • Generalization
  • Anticipation
  • Self-Serving Fairness Biases
  • Escalation of Commitment

Framing

  • A perspective or point of view that people use when they evaluate and make sense out of situations
  • Leads to different interpretations of the negotiation situation: -Interests -Power-Rights

Framing and Risk

  • People are risk-averse in the domain of gains, and risk-seeking in the domain of losses
  • Relevant for negotiation behavior: -Loss frames: become competitive -Gain frames: become cooperative-What to do?Put the other side in gain frame:"Think about how much you're gaining here." "This deal is going to get you so much more than you would have gotten otherwise.""You can have all this right now." -Gain frames lead to more cooperation and more satisfaction

Generalization

  • Stereotypes: -Assigning attributes based on category membership
  • Halo effects: -Attribution of one quality influences; attribution of another, unrelated quality -How do they affect people at work?

Anticipation

  • Selective perception: -Single out information that supports your beliefs; screen out disconfirming information
  • Projection: -Self-perception influences perception of others -What to do?: For all these biases, recognize and avoid heuristic shortcuts.Avoid time pressure, manage stress, and examine your assumptions.

Self-serving Fairness Biases

  • Tendency to hold egocentrically distorted perceptions of fairness
  • Own actions are more fair than the actions of others
  • Relevant for work behaviors: -Overly optimistic assessments that one's position is fair -More aggressive positions -Fewer agreements

Escalation of Commitment

  • Tendency to make decisions that stick with a failing course of action
  • Caused by biases in perception and judgment:-Initial commitments become set in stone -Desire for consistency -Desire for impression management-What to do?: Keep in mind the actual value of the issues. Ignore sunk costs. Have an advisor to keep things in check

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