Search

The aim of this thesis is thanks to an executed experiment among students of Economical University in Prague identify barriers of rationality influencing decision making. For this purpose we executed a quantitative research in the form of a questionnaire specially created for this experiment that helped us test barriers of rationality in students' decision making. We examined three types of barriers: an anchor, an influence of "FOR FREE" and adding a decoy among other choices. For data evaluation we had used methods of descriptive statistics, such as mode, median and measures of variability that we subsequently used for the evaluation of data by tests of hypotheses to compare their outcome with our assumptions. We have proved the validity of the influence of the "FOR FREE", the effect of the anchor and the decoy we have not proved in this research. We also suggested the improvement of the research and options how to reduce the influence of barriers of rationality.

The diploma thesis deals with the crucial aspect of manager's and leader's role in both public and private organizations -- decision making. It explains the different phases of the decision making process, and then challenges the classical concept based on the theory of rational choice with the results of many experiments outlining a slightly different picture of reality. It seems thought, that human decisions are not fully rational indeed. Despite the availability of advanced methods and tools, many of us instinctively rely on a variety of mental shortcuts and simplifications. Even worse, because they are rooted very deep into our minds and are rather non conscious, we tend to make the same mistakes again and again. To explore and to be fully aware of the danger of this psychological traps threatening the different phases of the decision making process, is the first important step on the way to weaken their influence. Tips and hints illustrated with many experiments and real-life examples from business in this thesis should help us to improve the quality of our decisions and achieve better results.

The Leader Member Exchange theory is based on the assumption that managers divide their subordinates into two groups: the "in-group" and the "out-group". A manager's in-group is composed of those employees who the manager is fonder of, for whatever reasons, than the members of the out-group. This thesis will first analyze the decision-making style of two managers based on personal interviews. Subsequently, using a questionnaire research, it will prove how the LMX theory applies to the management style of those leaders.