This website uses cookies to ensure you have the best experience. Learn more

Moneyball Essay

1766 words - 8 pages

Money Ball Essay
In today’s business world, any decision made by a manager can have serious implications on the progress of the organization. In addition to the intense pressure, the manager is also under constant scrutiny from his peers and supervisors. Keeping all this in mind, any soon-to-be business manager needs to be fully prepared to defend his decision making abilities. The book Moneyball gives a fair idea of this process, as the manager of the featured baseball team is faced with similar kinds of challenges.
Q) With the limited resources in hand, how can a manger make the most effective decision?
Every manager in modern world is faced with the limitation of resources. ...view middle of the document...

Before making any decision, a manger should always research the decision thoroughly. There is always a tendency to be affected by the latest information. However, the manager needs to understand that it’s not always the latest information which is the most relevant. He needs to study past performances as well. What a particular individual or company historically does is not necessarily what they will do next. So before making any decision, a manager needs to evaluate the big picture. By doing this, he can base his judgment on both current and past performances. As mentioned in the book, “there was the bias toward what people saw with their own eyes, or thought they had seen. The human mind played tricks on itself when it relied exclusively on what it saw, and every trick it played was a financial opportunity for someone who saw through the illusion to the reality” (Chapter 2). This advice is very important for a manager. They have to understand that whatever they think they are seeing is not always correct. The mind will often interpret a situation in the way that best suits it. The manager needs to be very particular about the biases these situations can create and he needs to evaluate these types of situations fairly as any decision which is biased by his imagination is bound to be ineffective. Therefore, he needs to direct his thoughts rationally and make unbiased decisions.
Q) How can a manager ensure that his decisions are effective?
A manager needs to understand that not all the decisions he makes will be correct. There will be some decisions that are bound to be erroneous, so he has to be prepared to face the consequences of these bad decisions. By challenging the conventional wisdom, there will be some element of risk to the manager’s decisions. As described in the book, there was a significant amount of risk-taking in Billy’s decision. He was going after lesser known players while all of his competitors were going for the big and famous players. But he minimized this risk by doing intense research about the players. The lesson is that any manager needs to engage in thorough research before making important decisions, in order to minimize the risks involved.
The manager also needs to evaluate the probability of a successful decision. This can be achieved by calculating the probability of success of earlier decisions. The final output should always be based on the previous probability and any new information that might affect the decision. In the book, Billy mentions "We're blending what we see but we aren't allowing ourselves to be victimized by what we see", (Chapter 2). This goes on to show that all the new information which a manager receives needs to blend with the probability based on his previous experiences. As a result, the final output or decision is automatically sensitive to both the new information and the past experience. Any decision based on this type of probabilistic estimate thus reduces the risk involved.

Other Papers Like Moneyball

Potential Careers In Sports Management Essay

4515 words - 19 pages released the concept of sports analytics was energized. Sports analytics is defined as “the management of structural historical data, and the use of information systems to inform decision makers and enable them to help their organizations in gaining a competitive advantage on the field of play” (Alamar & Mehrotra, Beyond 'Moneyball': The Rapidly Revolving World of Sports Analytics, Part 1, 2011). Simply explained it takes data that is already

Should Mlb Teams Have Price Caps

1480 words - 6 pages through the use of promotions in order to garner support for their team. The research question that we will investigate is a MLB team’s regular season winning percentage, and how it is affected by the team’s player payroll, average age, and the percentage of attendance per home game. Motivation The motivation for our study is that we are all baseball fans. One day we were all watching the movie “Moneyball” which is about how statistics can

Freedom And Responsibility

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are

A Heart Of Darkness

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Related Essays

Moneyball Essay

868 words - 4 pages Moneyball Katy Hansen Argosy University Management Decision Models B6025 Dr. Mathew Kuofie May 11, 2016 Moneyball In the article, “Who’s On First by Richard H. Thaler and Cass Rosenstein”, they examine why sabermetric-based player evaluation is such a shock to other executives in baseball. Billy Beane’s effectiveness is evaluated by constructing a matrix of pitfalls and practicalities that highlight the differences between Beane’s

Oakland A's Moneyball Essay

1575 words - 7 pages Oakland A's - Moneyball Jeremy ADM 1165 University of New Brunswick One man has been able to change the way baseball is perceived today. The man who was able to do this was named Billy Beane. Billy did this with his idea of “money ball”. Since he has introduced this idea in 2002, it has drastically changed the financial aspect of the game of baseball and still does today. By looking at small aspects of the game he managed to figure out a

Moneyball's Counterintuitive Essay

1828 words - 8 pages In reading Michael Lewis’ Moneyball it becomes apparent that it is much more than a story about the ‘Oakland A’ baseball team and Billy Bean. It is more so a rough guide to successfully managing a team to reach their goal. While the book focuses its content on baseball, it is clear that the themes discussed can be applied to a wide range of industries. This paper will discuss a few of these themes and how they relate to a wide range of

Is There Still A Role For Judgment In Decision Making?

732 words - 3 pages in a "blink" by Malcolm Gladwell, to "think twice" by Michael Mauboussin, and to think "fast and slow" by Daniel Kahneman. The replacement of customs and biases with data, "big" or "small," has been intended, at least in part, to drive out such things as tradition, habit, and even superstition in endeavors ranging from child rearing to professional sports. After all, wasn't the book and film, Moneyball, at least in part a glorification of the