Risk Taking Behaviour: Perception and Management

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Module Title: Risk Taking Behaviour: Perception and                  Management

Course work Title: The extent to which our judgements and decisions are influenced by the way we see and interpret the world.

The extent to which our judgements and decisions are influenced by the way we see and interpret the world.

Our judgments and decisions are largely influenced by the way we see and interpret this world. We are all insightful observers of other human beings. When we meet someone for the first time a professor giving a lecture, a stranger standing beside us in line, a newly hired employee at work, or a potential romantic interest at a party we effortlessly glean subtle clues from their appearance, gestures, words, and behaviours. When talking to acquaintances, we look beyond their words and actions to discover their hidden qualities and characteristics (Denelson, 1987). In real world and especially when a person is head of the organisation its really difficult to go through all the steps that are needed to complete a successful decision (Zsambok and klein, 1997). Therefore situational awareness and environment effects ones decision making ability (Bernstein,2003).Naturalistic decision making is effective model for a person comes across similar problems and utilizes his previous experience to make a decision every time.(Klein,1997). The environment also affects judgement making where a person is working therefore, there are many factors, which influences ones judgments, and decisions some of them are discussed as:

Cognitive dissonance is the perception of incompatibility between two , which can be defined as any element of , including , , , or . The theory of cognitive dissonance holds that contradicting cognitions serve as a driving force that compels the mind to acquire or invent new thoughts or beliefs, or to modify existing beliefs, so as to reduce the amount of dissonance (conflict) between cognitions. Experiments have attempted to quantify this hypothetical drive.The theory of cognitive dissonance was first proposed by the  Leon  in  (Glecker,2001) according to which cognitions are "dissonant" if the  of one follows from other, thus neglecting to bring an umbrella is dissonant with the knowledge that it is likely to rain. The magnitude of dissonance is related to the importance of the dissonant elements and the proportion of dissonant elements to cognitive elements.

 

Experiment

In Festinger and 's classic 1959 experiment, students were made to perform tedious and meaningless tasks, consisting of turning pegs quarter-turns, then removing them from a board, then putting them back in, and so forth. Participants rated these tasks very negatively. After a long period of doing this, students were told the experiment was over and they could leave. This is an example of an induced compliance study.However, the experimenter then asked the subject for a small favor. They were told that a needed  was not able to make it to the experiment, and the participant was asked to fill in and try to persuade another subject (who was actually a confederate) that the dull, boring tasks the subject had just completed were actually interesting and engaging. Some participants were paid $20 for the favor, another group was paid $1, and a control group was not requested to perform the favor.

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When asked to rate the peg-turning tasks later, those in the $1 group rated them more positively than those in the $20 group and control group. This was explained by Festinger and Carlsmith as evidence for cognitive dissonance. Experimenters theorized that people experienced dissonance between the conflicting cognitions "I told some one that task was interesting", and "I actually found it boring". When paid only $1, students were forced to internalize the attitude they were induced to express, because they had no other justification. Those in the $20 condition, it is argued, had an obvious external justification for their behavior.The ...

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