CH.12: Decision Making, Creativity, & Ethics Flashcards
Choice made from two or more alternatives
Decision
Refers to choices that are consistent & value- maximizing w/in specified constraints
Rational
6- step decision- making model that describes how individuals should behave in order to maximize some outcome
Rational Decision- making model
Steps in the Rational Decision- Making Model
- Define the problem
- Identify the criteria
- Allocate weights to the criteria
- Develop alternatives
- Evaluate alternatives
- Select best alternative
Limitations on one’s ability to interpret, process, and act on info
Bounded Rationality
Identifying a solution that is “good enough”, the 1st acceptable option rather than the optimal one
Satisficing
A subconscious process created out of a person’s many experiences
Intuitive decision making
Believing too much in our own ability to make good decisions
Overconfidence Bias
Using early, 1st received info as the basis for making judgments
Anchoring Bias
Selecting & using only facts that support our decision
Confirmation Bias
Emphasizing info more readily at hand
Availability Bias
Increased commitment to a previous decision even though evidence/ info is wrong
Escalation of commitment
Tendency of individuals to believe that they can predict the outcome of random events
Randomness Error
Tendency to prefer a sure thing over a risky outcome
Risk Aversion
Tendency to believe falsely, even after outcome is already known, believing it could have been accurately predicted beforehand
Hindsight Bias
Process of organizing & distributing an organization’s collective wisdom so the right info. gets to the right ppl at the right time
Knowledge Management
Strengths & Weaknesses of Group Decision Making
strengths: complete info. & knowledge, increased diversity of views, & has higher quality decisions
weaknesses: time consuming, conformity pressures, & one/ few members can dominate discussion
Measures of Effectiveness in group decisions
Acceptance
Accuracy
Creativity
Speed
Phenomenon in which group pressures for conformity prevent the group from critically appraising unusual, minority, or unpopular views
Groupthink
Phenomenon in which initial positions of individual members of a group are exaggerated due to interactions of group
Groupshift
Symptoms of Groupthink (6)
- Illusion of unanimity
- Minimized doubts
- Peer pressure
- Assumption of morality
- Illusion of invulerability
- Rationalized resistance
Group Decision- Making techniques
Brainstorming
Interacting Groups
Electronic Meetings
Nominal Group Technique
Group decision- making method in which individual members meet face to face to pool their judgments in a systematic but independent fashion
Nominal group technique
The three- component model of creativity
Intrinsic task motivation
Creative- thinking skills
Expertise
Organizational Factors that affect creativity
Surveillance Expected evaluation External motivators Competition Constrained choice- given limits on the way you do your work
Decision focused on outcomes/ consequences emphasizing the greatest good for the greatest # of ppl
Utilitarian criterion
Decisions consistent w/ Canadian Charter of Rights and Freedoms
Rights criterion
Decisions imposing & enforcing rules fairly & impartially, creating an equitable distribution of benefits & costs
Justice criterion
Factors Affecting Ethical Decision Making Behaviour
- Stage of moral development
- Locus of control
- Organizational environment
Stages of Moral development
Preconventional, Conventional, & Principled
Organization’s responsibility to consider the impact of its decisions on society
Corporate Social Responsibility
