Themanagement of any organization should ensure that it make decisionsnecessary in attaining its objectives. Some errors are encountered inthe process, and in most cases, the blame falls on staff. Emotionsand motivations have an influence on the decision making procedureespecially, when conflicts arise among policy makers (Bazerman &Moore, 2013). For instance, in the company I was working, the head ofour department was pressured to retrench some of the employees tomeet the number given. This was not an easy task hence, I advisedhim to come up a performance evaluation policy to help determine theunderperforming members. It increased the morale of hard-workingindividuals and reduced the complaints that were received from theretrenched members. The assessment list presented enough evidencethat showed how some individuals were not executing their dutiesproperly.
Investorsfund the stock markets for different reasons. Stock trading is veryunstable because the prices in these markets keep on fluctuating fromtime to time. Before they invest, they take the time to study thevolatility of the merchandise to determine if their wealth can bemaximized. Some may prefer cheap volatility while others are for thehigh one (Bazerman et al., 2013). There is a privilege to those whoprefer high volatility goods since they have a high likelihood ofgetting high returns when they decide to sell them. However,hyperbolic discounting is a point to consider at this point. Thefuture prices of the stocks are unknown, and some may prefer buyingthem at the current cost so that if their value reduces later on,then they will not encounter massive losses. Therefore, if thepresent prices can earn a profit, particular investors will decidebuy at that rate compared to a future one.
Thoughmost banks readily accepted the conditions laid out by the federalbailout, some of them were uncomfortable as they felt limited to mostof their operations (Labaton, 2009). Parts of these rules were seenas barriers to most of the programs that the money lendinginstitutions had initially laid out (Solomon, 2009). They wereordered to slash the dividends as well as cancel the training offeredto the employees. Similarly, they were prohibited from offering jobopportunities to foreign citizens. Unlike before, the set regulationsdictated the way the institutions carried out their activities. Thedecisions affected the banks and their management adversely as theywere subject to change anytime. Additionally, the congress and theadministration were given the power to alter the contents of thepolicy anytime. In self-serving reasoning, the financial institutionswere at liberty to suggest what they felt was fair for them andbetter for their businesses than any other body would advise(Bazerman et al., 2013).
Mostinvestors have been unknowingly robbed by the fraudsters, who havecome up with complicated Ponzi schemes. People decide to invest intosuch plans because they are promised attractive returns. They getmotivated to make unsound investment conclusions that consume part orall of their incomes. For instance, McCabe and his wife ventured intosuch a program for a long time, but they got nothing at the end sincethe company collapsed (Woodruff, 2012). They later discovered thattheir funds were used to pay older investors. Another joint decisionis the earning of higher returns that are not subject to risksnonetheless, there are hidden uncertainties that most people fail torecognize (Touryalai, 2012).
Exponentialdiscounting is used to analyze the choices that people make overtime. These resolutions were made because people enjoyed the returnsonly to realize the truth after they had been defrauded. This method,therefore, played a key role in the choices that the businesses andindividuals made concerning investing in the programs. The fact thatthey enjoyed the profits each year was a sure way for them to believethe same would continue for an indefinite time nevertheless, thisdid not happen.
Bazerman,M.H & Moore, D.A. (2013). Judgmentin Managerial Decision Making.Hoboken, NJ: Wiley
Labaton,S. (2009). Some Banks, Feeling Chained, Want to Return Bailout Money.TheNew Yolk Times,Retrieved fromhttp://www.nytimes.com/2009/03/11/business/economy/11bailout.html?blon August 29, 2016.
Solomon,D. (2009). More Banks to TARP: Thanks, but No Thanks. TheWall Street Journal,Retrieved from http://www.wsj.com/articles/SB123336063516635301on August 29, 2016.
Touryalai,H. (2012). Zeek Rewards and why Ponzi Schemes will Never Go Away.Forbes,Retrieved fromhttp://www.forbes.com/sites/halahtouryalai/2012/08/20/zeekrewards-and-why-ponzi-schemes-will-never-go-away/#79bc5f83653don August 29, 2016.
Woodruff,M. (2012). HowOne Bad Investment Decision Cost this Man His Retirement,Retrieved fromhttp://www.businessinsider.com/ron-mccabe-speaks-on-ponzi-scheme-betrayed-author-2012-12on August 29, 2016.