As general manager of the Astros, Jeff Luhnow is responsible for player-related operations. Owner Jim Crane is responsible for organizational strategy. Describe a few circumstances under which nonpro-grammed decisions made by Crane might affect Luh-now’s system of highly programmed decision making.What conditions contribute to the state ofcertainty under which Luhnow does his job? What conditions contribute to the state of risk under which he does his job? What conditions might contribute to the state of uncertainty under which he does his job? (Remember: Risk and uncertainty are not the same thing.) Be as specific as you can in giving examples of each set of conditions.According to Luhnow, “it’s our job in player develop-ment to turn the raw material that the scouts provide into Major League players. The more efficient and effective we can be at doing this, the bigger the edge we might have over other teams.” Recall the distinc-tion that we make between efficiency and effectiveness in Chapter 1. What must Luhnow do in order to make sure that his system is as efficient as possible? What must he do in order to make sure that it’s as effective as possible?What about you? Is your decision making susceptible to any of the following behavioral tendencies—bounded rationality, intuition, escalation of commitment? Do you prefer to gather information or to accept recommen-dations? Have you ever made a decision that you’d like to undo and reconsider? What steps might you take to improve your overall decision making?
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