2017/18 Undergraduate Module Catalogue

LUBS1785 Introduction to Effective Decision Making

10 creditsClass Size: 120

Module manager: Gulbanu Kaptan
Email: g.kaptan@leeds.ac.uk

Taught: Semester 1 (Sep to Jan) View Timetable

Year running 2017/18

Pre-requisite qualifications

Note for students on BSc Management and Mathematics: you cannot choose LUBS1785 and LUBS2785 as Discovery modules, as they are both mutually exclusive with LUBS3885 which is a compulsory module in year 3 of your programme.

Note for students on BA Management and BA Management with Marketing: you cannot choose LUBS1785 as a Discovery modules, as it is mutually exclusive with LUBS2785 which is a compulsory module in year 2 of your programme.

This module is mutually exclusive with

LUBS2785	How Managers Make Decisions
LUBS3885	Management Decision Making

This module is approved as a discovery module

Module summary

This module reflects a growing research field on decision making, giving you insight into the thinking processes that underlie your own and others’ judgment and decision making, the errors and biases that can arise in thinking, and some ways to improve decisions. The module does not assume any prior knowledge and can give insight into decision making that is useful in both personal and professional contexts. Decision research has influenced policy worldwide to help people to make better decisions in different applied domains, including finance, health , and sustainability.

Objectives

This module aims to teach effective management decision making on the basis of evidence-based approaches from risk management, cognitive psychology, and behavioural economics. It aims to provide students with an understanding of the thinking processes that underlie their own and others’ judgement and decision making, the judgmental errors and decision biases that commonly arise, and strategies for improving decisions. The module does not assume any prior knowledge and will give insight into effective decision making that is useful in both personal and professional contexts.

Learning outcomes
Upon completion of this module students will be able to identify and recognize:
- Different types of decisions and the theories used to explain how they are and should be made
- The thinking processes which underlie participants own and others’ judgement and decision making, including the distinction between System 1 and System 2 thinking.
- The different types of errors / biases in human judgement/decision making and how these can be overcome
- The influence of motivation, stress and emotion on judgement and decision making

Skills outcomes
On completion of this module students will be able to:
Subject Specific
- Reflect on their own thinking processes and those of others, including the ways in which such processes can be improved.
- Assess the relevance of the issues presented above for personal and managerial decision making, as appropriate.

Transferable
- Analyse and think critically
- Communicate effectively in writing

Syllabus

Indicative content:
Normative theory of decision making, maximisation of subjective expected utility (SEU); the descriptive validity of SEU.
The importance of limited capacity processing, System 1 and System 2 thinking and their impact.
Prospect Theory as an explanation of anomalies in human decision making, framing, the value function and probability weighting as ways of describing/explaining how people make decisions. Introduction to behavioural finance and mental accounting. Value-based and reason-based decision making.
Naturalistic dm.
Decision heuristics to explain how decision makers deal with limited capacity processing.
Judgemental heuristics for assessing probability and how these can lead to biased judgements.
Two-process theory accounts of judgement and decision making
Implications of biases for managerial decision making.
Motivational biases.
The effects of emotion, stress and time pressure on judgement and decision making.

Teaching methods

Delivery type	Number	Length hours	Student hours
Lectures	11	1.00	11.00
Seminar	5	1.00	5.00
Private study hours			84.00
Total Contact hours			16.00
Total hours (100hr per 10 credits)			100.00

Private study

Post-lecture reading: 22 hours
Seminar reading and preparation: 15 hours
Examination revision: 47 hours

Opportunities for Formative Feedback

Students will receive verbal feedback during seminars on the contribution made to seminar discussion.

Methods of assessment

Exams

Exam type	Exam duration	% of formal assessment
Standard exam (closed essays, MCQs etc)	2 hr 00 mins	100.00
Total percentage (Assessment Exams)		100.00

Resit will be 100% by exam.

Reading list

The reading list is available from the Library website

Last updated: 01/12/2017

Disclaimer

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