2022/23 Undergraduate Module Catalogue
LUBS2785 How Managers Make Decisions
10 creditsClass Size: 480
Module manager: Nicola Bown
Taught: Semester 1 (Sep to Jan) View Timetable
Year running 2022/23
This module is mutually exclusive with
|LUBS1785||Introduction to Effective Decision Making|
|LUBS3885||Management Decision Making|
This module is approved as a discovery module
Module summaryThis module reflects a growing research field on decision making, giving you insight into the thinking processes that underlie your own and others' judgement 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.
ObjectivesThis module aims to give students an understanding of the thinking processes that underlie their own and others' judgement and decision making, the errors and biases that can arise in thinking and some ways to improve decisions.
Upon completion of this module students will be able to identify and evaluate:
- 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
- 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
Upon completion of this module students will be able to:
- 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.
- Analyse and think critically
- Communicate effectively in writing
The 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.
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.
The effects of emotion, stress and time pressure on judgement and decision making.
|Delivery type||Number||Length hours||Student hours|
|Private study hours||84.00|
|Total Contact hours||16.00|
|Total hours (100hr per 10 credits)||100.00|
Private studyThis could include a variety of activities, such as reading, watching videos, question practice and exam preparation.
Opportunities for Formative FeedbackFormative feedback will be offered through regular contents-based MQCs and generically following the preparation of practice exam essays.
Methods of assessment
|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|
The resit for this module will be 100% by 2 hour examination.
Reading listThe reading list is available from the Library website
Last updated: 17/05/2022 15:20:43
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