Mkt640 Unit 1

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MGT600: Unit 2 DB2: Bias and Judgment Introduction In order to successfully run a business, it is important to make decisions without the element of bias. However, it is sometimes difficult for the decision maker to guard themselves against bias. Human beings are often ruled by their emotions and therefore bias occurs in our judgment most times on unconscious level. Bias is a predisposition to behave in a certain way. (Bazerman and Moore, 2010). We are prone to using heuristics as a guide to decision making. Heuristics, sometimes called rules of thumb are used to speed up the process of decision making to save time and cost. (Bazerman and Moore, 2010). The owner of the business believed at the time that she could run a successful tax preparation office regardless of the fact that she had lost over fifty percent of her clients. She believed that because it had been run successfully and with good reputation by the previous owner that the business would pick up and become even more successful. According to Bazerman, insensitivity to sample size is an element of the representative heuristic. Therefore relative to this assignment, I will attempt to show in this memo how my emotions and the use heuristics were prevalent in my decision making. Memo Based on my previous decisions, regarding the business, I realized that I made a hasty decision in firing the first two workers and hiring someone whom I believed to be more knowledgeable in tax preparation. Another co-worker in the tax office had voiced dissatisfaction with their efforts and that brought to my attention that they were only learning their way at the time. At the time, I thought it better to release the workers based on what the co-workers had said. The new worker was someone who I knew worked at the tax offices of H & R block and was said to be good worker. Time constraints, the financial

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