Halo Effect in Management: Impact on Decision Making Process

The Halo Effect
in Managerial
Practice
Student Details
1-1-2020

HALO EFFECT IN MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
The Halo Effect..........................................................................................................................2
Key Findings from the book “The Halo Effect” by Phil Rosenzweig...................................2
Halo effect in Management Practice......................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

HALO EFFECT IN MANAGEMENT 2
Introduction
The management of the organisation focuses upon the different managerial aspect of the
organisation to ensure that the activities are being conducted effectively within the
organisation. During the process the management has deal with various delusions within the
business environment, to ensure that the decisions taken are effective for the business growth
and success, management is required to analyse such misconceptions and delusions and focus
upon adopting the strategies through which such delusions can be avoided and a clear
understanding of the business environment can be developed so that the strategies can be
developed accordingly within the organisation (Stigter & Cooper, 2015).
The report is focused on analysing the Halo effect within the managerial practice and
analysing its impact within the decision-making process, the analysis is supported by the key
arguments from the book “The halo effect” by Phil Rosenzweig. The book helps in
understanding the impact of Halo effect on the managerial practice and the requirement to
avoid it during the decision-making process.
The Halo Effect
Key Findings from the book “The Halo Effect” by Phil Rosenzweig
The Halo effect by Phil Rosenzweig is a book that guides the managers that the business has
many delusions and the managers are required to think actively and just not rely upon the
management consultants and business experts while taking decisions within the organisation.
To explain the delusions within the managerial practices, Rosenzweig takes the example of
Lego, Nokia and WH Smith and explains the perceptions of the society towards the
expansion strategies of the organisations. Lego put its efforts to expand its business
operations and rely on the merchandises, which was away from its core business that was