Homework Clinic
Social Science Clinic => Business => Management => Topic started by: plus1 on May 20, 2019
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In a short essay, discuss how risk-taking can help explain individual behavior in organizations.
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People differ in their willingness to take chances. Differences in the propensity to assume or to avoid risk have been shown to affect how long it takes individuals to make a decision and how much information they require before making their choice.
To maximize organizational effectiveness, managers should try to align employee risk-taking propensity with specific job demands. For instance, high risk-taking propensity may lead to effective performance for a commodities trader in a brokerage firm because this type of job demands rapid decision making. On the other hand, an accounting job for a person who must be responsible for the financial well-being of an entire organization might be better suited to a conservative, non-risk-taking individual.
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Thank you!
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Always glad to help...