Natural Disasters and the Decisions that Follow

Q1 Insurance companies in the state of Florida earned record scratch in 2006, suggesting that countrywides conclusion to cancel policies in light of the calm hurricane seasons (in Florida) in 2005-2007 may have cost the company potential revenue and node high-pricedwill. Do you regain Rommels quote about making a bottom business conclusion reveals any perceptual or termination-making prepossesses? Why or why not? Overconfidence bias is identified as the aim to overestimate the probability that ones judgment in arriving at a decision in correct.Rommels quote about making a sanitary business decision reveals an overconfidence decision-making biases. Anchoring bias is a tendency to get on initial culture, and to then fail to adjust adequately for accompanying nurture. His decision also disclose an anchoring bias as it is heart like that Nationwide did not take into consideration some information that others did. Selective perception is selectively interpreting what one s ees on the radix of ones pleases, background, experience and attitudes.Rommels quote does reveal selective perception biases since they followed their own interest which is, money. Q2 Review the section on common biases and error in decision making. For companies such as Nationwide, American respiratory tracts, and JetBlue that must respond to natural events, which of these biases and errors argon pertinent and why? The introductory error/bias that is relevant to Nationwide Insurance company is overconfidence bias since they believed alike much in their own ability to assoil good decision A overweight decision.The flash error/bias is anchoring bias as they apply the early first received information for making a decision All other companies do a good revenue. The relevant error/bias regarding American Airline industry is overconfidence bias since they overestimated that their judgment in arriving at a decision is correct when Danny Burgin express snowstorms are easier to predict. Overconfidence bias is also relevant to JetBlue Airline as David Neeleman said Is our good will gone? No, it isnt and he believed too much in his ability to make a good decision.The second error/bias is regarding JetBlue Airline is Confirmation bias which is defined as The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgment. An example of this bias is when the CEO, David Neeleman said, Youre overdoing it, so go gather up Delta what they did about it. Why dont you grill them? . Q3 In each of the three cases discussed here, which organisational constraints were factors in the decisions that were made?Organisations can constraint decision markers, creating deviation from the rational model. The first organisational constraint that was a factor in the decisions that were made is Performance paygrade since managers want their works to be evaluated well so that sometimes they make some decisions that are not co mply with rational model, this constraint is link to Nationwide Insurance company. The second constraint is Historical Precedents which is relevant to American Airline industry, since choices that were made are largely a result of choices that were made over the years.The last two constraints are, System-Imposed time Constraint as they dependent their ability to gather or evaluate information, and Formal Regulation where callable to organisational purposes, some policies restricts managers to make a decision, these constraints are relevant for both American Airline industry as well as JetBlue Airline. Q4 How do you think people like Rommel, Burgin, and Neeleman factor ethics into their decisions? Do you think the well-being of policy owners and passengers enter into their decisions?People with high ethical standards are slight likely to engage in unethical practices, even in organisations or situations in which there are strong pressures to conform. The first ethical opening t hat arise in this case is Utilitarianism, where Rommel, Burgin and Neeleman did not seek to maximize good for the greatest number of people who were affected by their decisions. The second possible action is right theory, as it appears that they also did not respect and protect the fundamental rights of individuals. Finally, according to the justice theory, Rommel, Burgin and Neeleman did not impose and enforce rules fairly and impartially when they made decisions.