A Recent Article in the McKinsey Quarterly, Present a Useful

question 89

Essay

A recent article in The McKinsey Quarterly, present a useful list of some of the ways that strategic decisions can go wrong because of human shortcomings: 1.Overconfidence; 2.Loss aversion; 3.Champion Bias; 4.Misaligned risk aversion; and 5.Misaligned time horizon
Required: Provide a one sentence explanation for each of the five human shortcomings in decision making.

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Definitions:

Power Bases

refer to the sources of power or authority an individual or group holds, such as expertise, coercion, or referent power.

Sense Of Belonging

A person's feeling of being accepted, valued, and connected to a group, community, or society.

Cults

Groups often characterized by a shared religious, philosophical, or spiritual belief system, typically led by a charismatic leader and not conforming to societal norms.

Obedience

The act of following the directives of an authority figure, which can be influenced by varying factors including cultural expectations and personal morality.