MHR 721 Lecture Notes - Lecture 6: Bounded Rationality

• School: Ryerson University
• Department: Human Resources
• Course: MHR 721
• Professor: Neil Rothenberg

Document Summary

Reading 2. 2: managers and their not-so rational decisions. Framing and loss aversion: preference for avoiding loss over gains, value placed on your (cid:448)s other"s goods. Source dependence: preference for risk on familiar sources. Emotions may divert our attention from substantive matters. Revelation of emotions can open us up to being manipulated: oppo(cid:374)e(cid:374)t"s (cid:449)ill read you a(cid:374)d the (cid:449)ay you rea(cid:272)t to (cid:272)ertai(cid:374) thi(cid:374)gs, (cid:272)a(cid:374) fi(cid:374)d your (cid:862)tell(cid:863) Thinking may take a subordinate role to feeling: because we cannot easily quantify or measure emotions, talking about emotions reduces the role of hard data, facts, and logic. For a negotiator, emotions are seen as an impediment to avoid at all costs, however: Emotions are unavoidable: hu(cid:373)a(cid:374) (cid:271)ei(cid:374)gs are i(cid:374) a state of (cid:862)perpetual e(cid:373)otio(cid:374)(cid:863, always feeling different emotions, moods are low intensity affective states, attitudes are positive or negative evaluations of a person, institution, policy, or event. Emotions can help you reach your negotiation goals.