Management 13th Edition by John Schermerhorn,Daniel Bachrach

Exercise 18

KEEP LEARNING ABOUT YOURSELF
Can boredom and dissatisfaction explain pursuit of risky sports or personal behaviors
Risk Taking Has Its Ups and Downs
W hy is there so much interest in adventure sports like ice climbing, river running, base jumping, spelunking, and more Some people assume it is a quest for the adrenaline rush: others argue that the "thrill" is addictive. What is clear is that it's all about risk taking , and people vary in the degree that they are comfortable taking risks in uncertain situations.
Risk taking is a way to step forward, stop "playing it safe," and try new things that can enrich our lifestyle. But there's need for caution as well. The risks we take in our personal lives and in our careers aren't always for the best. There is a difference between a crazy gamble and calculated risk.
Research shows that executives in higher-performing organizations take risks while motivated by confidence. Th is helps them pursue opportunities and adapt well to emergent problems. Executives in lower-performing organizations may take risks while motivated by desperation to escape present difficulties. Because they lack confidence, they are likely to jump from one problem to the next without making any real sustainable gains.
Consider the nearby figure. On which side of the "risk line" do you most often fall-the positive side motivated by confidence, or the negative side motivated by desperation It is interesting to note that research links high risk taking with boredom and dissatisfaction. Can this explain why some people engage in risky sports or personal behaviors-because they're bored or dissatisfied
It is important to understand our tendencies toward risk taking and its potential to increase or decrease success. The figure identifies a "risk line" above which risk can be a positive influence on behavior and below which it can be a negative influence. The former is driven by opportunity and confidence, the latter by fear and desperation. As you ponder the many complexities of organizations' external environment, including opportunities of innovation and sustainability, stop and ask: How do we individually, organizationally, and as a society deal with risk in our environments, and how can we do better

GET TO KNOW YOURSELF BETTER
Use the above figure to do a quick self-check of your risk-taking tendencies. Which side of the risk line are you most often on-positive or negative Write short descriptions of risks you've taken at school, at work, and your personal life that were driven (a) by confidence and (b) by desperation. What do these descriptions suggest about how risk taking influences your behavior in professional and personal areas of your life