...Zaka Mahmood Ethical Concepts in Health Care Davenport University HLTH 230 Patricia Spiegel Abstract Primary health care as we see is an essential base of building our health system. Advanced development and new tools must consist of operational and supportive relations with the primary health care, along with recommending arrangements to ensure the population of their coverage as to their relevant needs, and be dependable with ethical guidelines linked to the public’s health and the health care. Heading The task of this presentation is to collaborate different issues. Consisting of new development in the health sector, critically providing more effective and indifferent health care along with an improving attitude towards the health population, mainly in developing countries. Primary health care as we see is an essential base of building our health system. Advanced development and new tools must consist of operational and supportive relations with the primary health care, along with recommending arrangements to ensure the population of their coverage as to their relevant needs, and be dependable with ethical guidelines linked to the public’s health and the health care. Most importantly, we would not like for the various advances health sector to utilize helplessly or isolate them self’s from one another, but take the effort to interact and advance complementary components of systems that have a global integrated nature. Now, we redirect to the three set of sources...
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...Journal of Economic Behavior & Organization 72 (2009) 147–152 Contents lists available at ScienceDirect Journal of Economic Behavior & Organization journal homepage: www.elsevier.com/locate/jebo Cognitive abilities and behavioral biases Jörg Oechssler a,∗ , Andreas Roider a , Patrick W. Schmitz b a b Department of Economics, University of Heidelberg, Bergheimer Str. 58, 69115 Heidelberg, Germany Department of Economics, University of Cologne, Germany a r t i c l e i n f o a b s t r a c t We use a simple, three-item test for cognitive abilities to investigate whether established behavioral biases that play a prominent role in behavioral economics and finance are related to cognitive abilities. We find that higher test scores on the cognitive reflection test of Frederick [Frederick, S., 2005. Cognitive reflection and decision-making. Journal of Economic Perspectives 19, 25–42] indeed are correlated with lower incidences of the conjunction fallacy and conservatism in updating probabilities. Test scores are also significantly related to subjects’ time and risk preferences. Test scores have no influence on the amount of anchoring, although there is evidence of anchoring among all subjects. Even if incidences of most biases are lower for people with higher cognitive abilities, they still remain substantial. © 2009 Elsevier B.V. All rights reserved. Article history: Received 19 May 2008 Received in revised form 15 April 2009 Accepted 15 April 2009 Available online...
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...Behavioural Finance Literature Review Name Institution Professor Date ABSTRACT INTRODUCTION It is tough today to avoid the concept of behavioural finance in the day to day operations of the modern day’s business. All over the world Governments are in a process of experimenting the application of the psychology of decision making to tune their citizens towards better behaviours. Companies and institutions are paying attention to this concept as a new opportunity of realizing profits. Traditionally, the finance paradigms relied heavily on understanding finance markets using the models that had agents who were rational. In the Scenario, rationality implied that when the companies received new information, they updated their agents believes as described by the Bayes law. Besides, with their beliefs, managers and agents made decisions that are acceptable because they are consistent with the Savage idea of Subjective Expected Utility. This traditional approach was viewed as successful if it received data backing. However, as markets became complicated, it became clear that basic acts involving the stock market, the average returns and peoples trading behaviours could not be comprehended in the traditional model. The behavioural finance is the new approach to the emerging financial markets as it addressed the challenges faced by the traditional paradigms. The basic argument of this paradigm is that some financial phenomena can be best can be best comprehended by the...
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...After a general introduction, specific information about the beer market will be given. This is followed by a short analysis of the company Heineken NV, a Dutch beer brewer operating in over 170 countries worldwide. To end the report a conclusion will be given. This is followed by, which will include among other things the recommendation to create a strong bond with the consumer. In the very end you will find a list of all the sources that were used to write this report. Contents Abstract 1 Introduction 3 1. Literature review 4 1.1 Three pillar model 4 1.2 Theories 4 1.2.1 Neoclassical economics 5 1.2.2 Institutional economics 6 1.2.3 Behavioural economics 8 1.3 Entities 10 1.3.1 Institutions 10 1.3.2 Organizations 10 1.3.3 Individual Actors 10 1.3.4 Trends 11 1.4 Paradigms 11 2. Methodology 13 3. Industry specific investigation 14 3.1 A brief history 14 3.2 Institutional characteristics 16 4. The company: Heineken NV 19 Conclusions 20 Recommendations 21 Bibliography 24 Introduction In front of you is a report written for the International Business School, Hanze University of Applied Sciences,...
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...Behavioural Finance Martin Sewell University of Cambridge February 2007 (revised April 2010) Abstract An introduction to behavioural finance, including a review of the major works and a summary of important heuristics. 1 Introduction Behavioural finance is the study of the influence of psychology on the behaviour of financial practitioners and the subsequent effect on markets. Behavioural finance is of interest because it helps explain why and how markets might be inefficient. For more information on behavioural finance, see Sewell (2001). 2 History Back in 1896, Gustave le Bon wrote The Crowd: A Study of the Popular Mind, one of the greatest and most influential books of social psychology ever written (le Bon 1896). Selden (1912) wrote Psychology of the Stock Market. He based the book ‘upon the belief that the movements of prices on the exchanges are dependent to a very considerable degree on the mental attitude of the investing and trading public’. In 1956 the US psychologist Leon Festinger introduced a new concept in social psychology: the theory of cognitive dissonance (Festinger, Riecken and Schachter 1956). When two simultaneously held cognitions are inconsistent, this will produce a state of cognitive dissonance. Because the experience of dissonance is unpleasant, the person will strive to reduce it by changing their beliefs. Pratt (1964) considers utility functions, risk aversion and also risks considered as a proportion of total assets...
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...Behavioural Finance Martin Sewell University of Cambridge February 2007 (revised April 2010) Abstract An introduction to behavioural finance, including a review of the major works and a summary of important heuristics. 1 Introduction Behavioural finance is the study of the influence of psychology on the behaviour of financial practitioners and the subsequent effect on markets. Behavioural finance is of interest because it helps explain why and how markets might be inefficient. For more information on behavioural finance, see Sewell (2001). 2 History Back in 1896, Gustave le Bon wrote The Crowd: A Study of the Popular Mind, one of the greatest and most influential books of social psychology ever written (le Bon 1896). Selden (1912) wrote Psychology of the Stock Market. He based the book ‘upon the belief that the movements of prices on the exchanges are dependent to a very considerable degree on the mental attitude of the investing and trading public’. In 1956 the US psychologist Leon Festinger introduced a new concept in social psychology: the theory of cognitive dissonance (Festinger, Riecken and Schachter 1956). When two simultaneously held cognitions are inconsistent, this will produce a state of cognitive dissonance. Because the experience of dissonance is unpleasant, the person will strive to reduce it by changing their beliefs. Pratt (1964) considers utility functions, risk aversion and also risks considered as a proportion of total assets. Tversky and Kahneman...
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...Expected Value and Consumer Choices Argosy University Abstract Consumers’ choices are prey to subtle discrepancies that arise in cognitive accounting and identifying how and when you are susceptible is an important step in improving the decision making process (Tvorik, 2014). This paper will consider why people value gains and losses differently in different circumstances by addressing what mental accounting is and how it impacts consumer decision making; and how a company can take advantage of their consumers’ mental accounting (Tvorik, 2014). This writer will also consider different scenarios from differing points of view; as a marketer and as a consumer. As a marketer, this writer will analyze how I would frame certain decisions to benefit from the disparities in my own cognitive accounting. As a consumer, I will address how to avoid the pitfalls posed by the inequalities of again, my own cognitive accounting (Tvorik, 2014). Mental accounting is a term that describes how people categorize and quantify economic outcomes (Thaler, 1980). This is similar to financial accounting in the way of using a system of debits and credits and affects how people spend and save their money, thus consumer decision-making. Mental accounting determines “when an individual chooses to act or postpone a purchase, how he or she perceives gains and losses, and how timing bears on the individual’s choices” in relation to the three mental buckets: current income, current wealth and future...
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...THE JOURNAL OF FINANCE • VOL. LVI, NO. 4 • AUGUST 2001 Investor Psychology and Asset Pricing DAVID HIRSHLEIFER* ABSTRACT The basic paradigm of asset pricing is in vibrant f lux. The purely rational approach is being subsumed by a broader approach based upon the psychology of investors. In this approach, security expected returns are determined by both risk and misvaluation. This survey sketches a framework for understanding decision biases, evaluates the a priori arguments and the capital market evidence bearing on the importance of investor psychology for security prices, and reviews recent models. The best plan is . . . to profit by the folly of others. — Pliny the Elder, from John Bartlett, comp. Familiar Quotations, 9th ed. 1901. IN THE MUDDLED DAYS BEFORE THE RISE of modern finance, some otherwisereputable economists, such as Adam Smith, Irving Fisher, John Maynard Keynes, and Harry Markowitz, thought that individual psychology affects prices.1 What if the creators of asset-pricing theory had followed this thread? Picture a school of sociologists at the University of Chicago proposing the Deficient Markets Hypothesis: that prices inaccurately ref lect all available information. A brilliant Stanford psychologist, call him Bill Blunte, invents the Deranged Anticipation and Perception Model ~or DAPM!, in which proxies for market misvaluation are used to predict security returns. Imagine the euphoria when researchers discovered that these mispricing proxies...
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...“upper echelons”, organizations and strategy researchers have tried to establish a relationship between top management team demographic characteristics and firm outcomes. However, empirical results have been inconsistent. Certo, Lester, Dalton and Dalton (2006), after conducting a meta-analysis of several studies, found modest support for a direct relationship between TMT demographic indicators and firm performance, but indicated moderating influences. Hambrick (1994) provided the main argument against TMT research based on demographic characteristics. According to him, this line of inquiry pays “too little attention to the actual mechanisms that serve to convert group characteristics into organization outcomes” (p. 185). Recent research on strategic leadership, trying to overcome these mixed findings, has begun to change focus away form TMT characteristics and concentrate on the processes underlying TMT decision making (functioning) such as comprehensiveness, consensus, social integration, conflict and decision speed (Certo et al., 2006). Lubatkin et al. (2006) and Carmeli and Schaubroeck (2006) present good examples that, when processes were measured directly, they were a stronger predictor of organization outcomes and performance than demographic characteristics. Among the recent studies of TMT processes, the concept of behavioral integration (Hambrick, 1994) has received particular attention (Simsek et al., 2005). As defined by Hambrick (1994), behavioral integration is...
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...Behavior, Leadership and Managerial Skills, Contemporary Organizational Behavior In an Organization, the everyday life of an employee is like a rollercoaster ride considering the different factors and the multi-faceted fast-paced interaction that happens every day. An employee is faced with different culture as organizations now usually employs not just locals but foreign nationals as well. Given the difference in culture, pressure to co-exist and the perceived differences will take its toll at some point. Organizational Behavior (OB) as defined in the book, An Introduction to Organizational...
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...cultures in which today's businesses operate. "The task of getting organizations to function effectively is a difficult one," wrote David A. Nadler and Michael L. Tushman in Hackman, Lawler, and Porter's Perspectives on Behaviors in Organizations. "Understanding one individual's behavior is a challenging problem in and of itself. A group, made up of different individuals and multiple relationships among those individuals, is even more complex…. In the fact of this overwhelming complexity, organizational behavior must be managed. Ultimately the work of organizations gets done through the behavior of people, individually or collectively, on their own or in collaboration with technology. Thus, central to the management task is the management of organizational behavior. To do this, there must be the capacity to understand the patterns of behavior at individual, group, and organization levels, to predict what behavior responses will be elicited by different managerial actions, and finally to use understanding and prediction to achieve control." The Behavioral Sciences Organizational behavior scientists study four primary areas of behavioral science: individual behavior, group behavior, organizational structure, and organizational processes. They investigate many facets of these areas like personality and perception, attitudes and job satisfaction, group dynamics, politics and the role of leadership in the organization, job design, the impact of stress on work, decision-making processes...
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...theoretical topic, along with associated definitions relevant to the theoretical/conceptual area. For the purpose of this assignment, the article, “The effects of the perceived behavioral integrity of managers on employee attitudes: A meta-analysis” was selected. This premise of this research was to establish correlation of results attained from the previously conducted empirical research pertaining to the relationship of behavioral integrity of the managers and the attitudes of employees. Within this article, the following definitions were clarified to bring a better understand of what behavioral integrity is and vital components contained therein (trust and credibility). According to Simons (2002), behavioral integrity is the perception of an aligned pattern as depicted by one’s words and deeds. Therefore, trust is the acuity formed as a result of prior reliability and dependability authenticated from past endeavors as depicted by McAllister (1995). The last definition of credibility, serves as a precursor to trustworthiness. Yet, credibility and trust are components which has a strong effect on behavioral integrity, these factors were not utilized to gauge behavioral integrity for this study (Davis & Rothstein, 2006). Rightfully, the authors integrate the relationship amid perceived behavioral integrity of managers and the attitudes of employees as it pertains to job satisfaction, organizational commitment, satisfaction with the leader and the organizational involvement...
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...productive. If such assumptions are accepted, the human problems that the management is facing are relatively easy to solve. But human behaviour at work is much more complicated and diverse. The new perspective assumes that employees are extremely complex and that there is a need for theoretical understanding given by empirical research before applications can be made for managing people effectively. MODERN APPROACH TO ORGANIZATIONAL BEHAVIOUR The modern approach to organizational behaviour is the search for the truth of why people behave the way they do. The organizational behaviour is a delicate and complex process. If one aims to manage an organization, it is necessary to understand its operation. Organization is the combination of science and people. While science and technology is predictable, the human behaviour in organization is rather unpredictable. This is because it arises from deep needs and value systems of people. HISTORICAL BACKGROUND FOR MODERN ORGANIZATIONAL BEHAVIOUR Scientific Management Approach Scientific management approach was developed by F.W. Taylor at the beginning of the 20th century. This theory supported the use of certain steps in scientifically studying each element of a job, selecting and training the best workers for the job arid making sure that the workers follow the...
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...discrepancies of the system. Valerie is uncomfortable with this and for good reasons. Swain is the one who asked Valerie to conduct the survey so keeping it from him would not benefit everyone. Mr. Hassler has years of experience compared to Ms. Wyatt who just completed college. Ms. Wyatt should assist in correcting most of the problems in the system and conduct another survey in regards to what everyone thinks should be done to improve the way things are running. Valerie should incorporate the behavioral and technological strategies. Behavioral strategies emphasize the use of human resources. Clearly, Valerie was motivated toward an important goal when she was able to use her talents. "Employees generally have higher morale and are motivated toward organization goals when their personal resources and talents are fully used" (Brown, 2011). Greater motivation and commitment improves organization performance. The technological strategy implements new systems and beings organizations up to date. The system this company is using is not working as best as it could. They need to change to something more conveniently Brown, D.R. (2011). An Experiential Approach to Organizational Development. Saddle River, NJ: Pearson Education,...
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... but the one most responsive to change,” according to Charles Darwin. With organizations, change is constant. Organizational change is inevitable in order to cope with competitors. The private owned business Concord Bookshop is located in Boston, Massachusetts and has been the pride of the town for years. According to the reading, Concord Bookshop is considered as one the best in New England. The Concord Bookshop develops a change due to the bookstore’s financial state. This essay will discuss the phases in the organizational change process and discusses the phases that were not implemented at the concord bookshop that resulted to company’s business failure. The three phases of organizational change are turnaround, tools and techniques, and transformational behavioral change. In turnaround phase, implementing cost effective measures are, usually, the first step in most recovery approach as they can be accomplished quickly and generally needs little or no capital or investment of any resources. Another phase of organizational change is the tools and techniques that aims on improving internal organization processes. Changes on the organizations processes are being made without affecting behaviors of employees. The third phase is the transformational behavioral change, it requires changes of the employees’ behaviors need to be achieved in order to meet organizations strategies to achieve organizations goal. In the reading: Tale of Woe at Concord Bookshop”, Turn around is one...
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