ØAADM3700 Decision-Making Processes in Organizations Course description

People make hundreds, if not thousands, of judgments and decisions every day. In organizations, many of these decisions are made in situations involving uncertainty and high stakes. Yet many managers and employees receive little formal training in how to make effective decisions, and research shows that people systematically repeat the same judgment errors and biases. These skills are increasingly important in contemporary organizations, where decisions are often made under information overload, exposure to misinformation, polarization, and growing reliance on algorithmic and AI-based decision tools.

Drawing on insights from judgment and decision-making, social and cognitive psychology, and behavioral economics, this course provides students with a conceptual and practical toolkit to identify, predict, and mitigate common decision traps, including systematic bias and unwanted variability in judgment, and to design more effective decision-making processes in organizations.

The course examines the cognitive, social, and motivational factors that shape decision-making at both the individual and group levels. Core topics include heuristics and biases, intuition and deliberation, emotional influences, risk and uncertainty, social and moral dilemmas, and persuasion and influence. The course also explores how decision processes can be improved through choice architecture and behavioral interventions, including nudging and boosting. The course places particular emphasis on the art of experimentation—using experimental logic to reveal decision-making pitfalls and to design and evaluate interventions for better organizational decisions.

Teaching is research-based and application-oriented, encouraging students to adopt a dual role as scientist and practitioner through case analyses, group discussions, and simulations of organizational decision-making.

Language of instruction is English.

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After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student:

• has knowledge of descriptive, normative, and prescriptive models of judgment and decision-making.
• understands how heuristics and cognitive biases arise and how they contribute to systematic decision-making errors.
• has knowledge of how judgments and decisions are shaped by individual, situational, and social factors, including emotions, group dynamics, and power relations.
• is familiar with research-based tools and strategies for improving decision-making in organizations, including behavioral interventions.

Skills

The student:

• can identify and analyze decision-making problems, including bias, unwanted variability (noise), risk, and uncertainty
• can apply insights from behavioral decision research to evaluate and improve decision-making processes.
• can design and assess simple behavioral interventions, including nudges and choice-architecture techniques, aimed at improving judgment and decision-making.

General Competence

The student:

• has the metacognitive skillset to recognize when their own and others’ gut feelings may be misleading, when they can be trusted, and how to act accordingly.
• can critically evaluate theories and empirical findings in judgment and decision-making and assess their relevance and limitations in organizational practice.
• can reflect on the ethical and practical implications of using behavioral interventions to influence decisions in organizations.

Teaching consists of lectures, discussions, case analyses, and group-based simulations. Students will work individually and in groups to apply theory in practice.

The teaching take place with in-person attendance on campus.

The following coursework requirements must have been approved for the student to take the exam:

• Coursework 1: Written case analysis. Students will work in groups to analyze a real-world decision-making problem, including giving and receiving peer feedback to enhance reflection and learning. The submitted work will have a scope of 2000 to 2500 words.
• Coursework 2: Oral group presentation. Student groups will present and discuss their analyses for the class. The oral presentation will have a scope of 10 minutes.

The aim of the coursework requirements is to equip students with practical skills to apply their knowledge in real-world scenarios while ensuring academic progression in the course.

All required coursework must be completed and approved by the given deadline for the student to take the exam. If one or more coursework requirements have not been approved, the student will be given one opportunity to submit/present an improved version by a given deadline.

The exam in the course is a supervised exam of 4 hours.

No aids are permitted.

Grade scale A - F

The exam papers are assessed by one internal and one external examiner.

At least 25 % of the exam papers will be assessed by two examiners. The grades awarded for the papers assessed by two examiners form the basis for determining the level for all the exam papers.

Lewend Mayiwar