ch 11 making decisions

Question 1

decision making

Answer 1

making choices among alternative courses of action - which may include inaction

Question 2

programmed decisions

Answer 2

decisions that occur frequently enough that we develop an automated response to them

Question 3

decision rule

Answer 3

the automated response we use to make these decisions
ex. complaints at a restaurant are dealt by enacting a policy that they receive a free dessert when giving a valid complaint

Question 4

nonprogrammed decisons

Answer 4

unique and important decisions require conscious thinking, info gathering, and careful consideration of alternatives

Question 5

three levels of decisions

Answer 5

strategic
tactical
operational

Question 6

strategic decisions

Answer 6

set the course of an organization
- top management teams, CEOs, boards of directors

Question 7

tactical decisions

Answer 7

decisions about how things will get done
- managers

Question 8

operational decisions

Answer 8

decisions that employees make each day to make the organization run
- employees throughout the organization

Question 9

rational decision making model

Answer 9

a series of steps that decision makers should consider if their goal is to maximize the quality of their outcomes

Question 10

8 steps in the rational decision-making model

Answer 10

1. identify the problem
2. establish decision criteria
3. weigh decision criteria
4. generate alternatives
5. evaluate the alternatives
6. choose the best alternative
7. implement the decision
8. evaluate the decision

Question 11

analysis paralysis

Answer 11

the availability of too much info, when more and more time is spent on gathering info and thinking about it but no decisions actually get made

Question 12

bounded rationality model

Answer 12

individuals knowingly limit their options to a manageable set and choose the first acceptable alternative without conducting an exhaustive search for alternatives

Question 13

satisfice

Answer 13

(satisfy and suffice)
accepting the first alternative that meets you minimum criteria

Question 14

intuitive decision-making model

Answer 14

arriving at decisions without conscious reasoning

Question 15

5 step creative decision-making process

Answer 15

1. problem recognition
2. immersion
3. incubation
4. illumination
5. verification and application

Question 16

fluency

Answer 16

the number of ideas a person is able to generate

Question 17

flexibility

Answer 17

how different the ideas are from one another

Question 18

originality

Answer 18

how unique a person’s ideas are

Question 19

3 aspects of creativity

Answer 19

fluency, flexibility, originality

Question 20

brainstorming

Answer 20

a group process of generating ideas that allow a set of guidelines, including no criticism of ideas during brainstorming process, the idea that no suggestion is too crazy, and building on other ideas

Question 21

idea quotas

Answer 21

the quantity of ideas actually leads to better idea quality in the end
group must reach a set number of ideas before they are done is recommended to avoid process loss and maximize the effectiveness of brainstorming

Question 22

wildstorming

Answer 22

group focuses on ideas that are impossible and then imagines what would need to happen to make them possible

Question 23

4 decision making models

Answer 23

rational
bounded rationality
intuitive
creative

Question 24

overconfidence bias

Answer 24

occurs when individuals overestimate their ability to predict future events

Question 25

hindsight bias

Answer 25

the opposite of overconfidence bias occurs when looking backward in time and mistakes seem obvious after they have already occurred

Question 26

anchoring

Answer 26

the tendency for individuals to rely too heavily on a single piece of info

Question 27

framing bias

Answer 27

the tendency of decision makers to be influenced by the way that a situation or problem is presented

Question 28

escalation of commitment

Answer 28

when individuals continue on a failing course of action after info reveals it may be a poor path to follow aka sunken costs fallacy

Question 29

8 symptoms of groupthink

Answer 29

1. illusion of invulnerability 2. collective rationalizations 3. an unquestioned belief in the group's inherent morality 4. stereotyped views of outgroups 5. direct pressure 6. self-censorship 7. illusions of unanimity 8. the emergence of self-appointed mindguards

Question 30

nominal group technique (NGT)

Answer 30

developed to help with group decision making by ensuring that all members participate fully used to structure group meetings when members are grappling with problem solving or idea generation to ensure that all members participate fully, and it avoids group decision making problems such as groupthink

Question 31

4 steps of NGT

Answer 31

1. each member of the group begins by independently and silently writing down ideas 2. the group goes in order around the room to gather all the ideas that were generated 3. a discussion takes place around each idea, and members ask for and give clarification and make evaluative statements 4. group members vote for their favorite idea by using ranking or rating techniques

Question 32

delphi technique

Answer 32

a group process using written responses to a series of questionnaires instead of physically bringing individuals together to make a decision

Question 33

majority rule

Answer 33

a decision-making rule in which each member of the group is given a single vote and the option receiving the greatest number of votes is selected

Question 34

consensus

Answer 34

goal is to gain support for an idea or plan or action

Question 35

group decision support systems (GDSS)

Answer 35

interactive computer-based systems that are able to combine communication and decision technologies to help groups make better decisions

Question 36

decision trees

Answer 36

diagrams in which answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree

Question 37

questions to ask to assess the ethics of a decision

Answer 37

- is this decision fair - will i feel better or worse about myself after i make this decision - dies this decision break any laws - how would i feel if this decision were broadcast on the news