Moneyball, a book by Michael Lewis (2003), highlights how creativity, framing, and robust technical analysis all played a part in the development of a new approach to talent management in baseball. It also exhibited great examples of the biases and psychological pitfalls that plague decision makers.
Review the article “Who’s on First?” by Thaler & Sunstein (2003) from this module’s assigned readings. This article reviews the book Moneyball by Michael Lewis.
Write a critique of the article including the following points:
Examine why sabermetric-based player evaluation is such a shock to other executives in baseball. Evaluate why Beane is much more effective in his success by constructing a matrix of pitfalls and heuristics that highlight the differences between Beane’s team and other executives. Moneyball highlights how people tend to overestimate the likelihood of success and end up facing financial loss—in this case, it meant forfeiting millions of dollars. Analyze a professional or personal decision (yours or otherwise) that highlights this predilection in spite of substantial losses. Explain how you would apply Moneyball’s management lessons in your own endeavors. Write a 3–5-page paper in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M1_A3.doc. _____________________________________________________________________________________________________________________________________-
Assignment 2: Discussion—Munger’s Mental Models
In his article “A Lesson on Elementary, Worldly Wisdom as it Relates to Investment Management & Business,” Charles Munger (1995) wrote about tools, techniques, and critical skills that great managers need to develop.
Consider Munger’s thoughts on the importance of mental models. Respond to the following:
In your own words, describe what Munger means by mental models. Examine how Munger’s concept of mental models has changed your ideas of decision making in investment management and business. Describe at least one example from your own experience where your perspective or experience provided a mode of thought that brought new light to a discussion or a tough decision. Explain how this experience has affected your decision-making process. Munger, C. T. (1995). A lesson on elementary, worldly wisdom as it relates to investment management & business. Outstanding Investor Digest, 1, 49–63.
By Saturday, June 24, 2017, post your response to the appropriate Discussion Area. Through Monday, June 26, 2017, review and comment on at least two peers’ responses.
Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation