Chapter 11

Question 1

Decision making definition

Answer 1

Making choices among alternative courses of action, including inaction.

Question 2

Programmed and non-programmed decisions

Answer 2

Choices that occur frequently enough that we develop an automated response.

Non-prog. Response exact opposite of org. Response

Question 3

What are the three categories of decision based on the level that they occur?

Answer 3

Strategic- set course for an organization. (Top management)
operational- Decisions employees make daily to make the company run.
tactical-decisions about how things will get done

Question 4

8 step rational decision making model

Answer 4

1. Identify the problem
2. Establish decision criteria
3. Weigh decision criteria
4. Generate alternatives
5. Evaluate the alternatives
6. Choose the best alternatives
7. Implement the decisions
8. Evaluate the decisions
   Reality… this only makes sense with strategic decisions, because of what the model is. Fro the tactical and operational it takes to much money and time.

Question 5

Bounded rationality model

Answer 5

Individuals knowingly limit their options to a manageable set and choose the first acceptable alternative w/out proper search.
Satisficing- meets standards but it is not optimal decision. Due to money and time crunch it best option

Question 6

Intuitive decision making

Answer 6

Arriving at decisions w/out conscious reasoning. The model argues that in a given situation, experts making decisions scan the environment for cues to recognize patters

Question 7

Creativity def.

5 step creative decision making process

Answer 7

The generation of new ideas that are original, fluent and flexible

1. Problem recognition
2. Immersion
3. Incubation
4. Illumination
5. Verification & application

Question 8

What are some decision making traps?

Answer 8

Opposite bias
Overconfidence bias- overconfident in your abilities
Hindsight bias-looking back and seems easier after the fact.

Anchoring bias- tendency to rely to heavily on one piece of information
Framing bias-influenced by the way the problem is presented to them (cropping a pic example)

Escalation of commitment- continuing on a failure course (refusing to admit when i was wrong)

Question 9

What is group think conceptually ?

How do you stop it?

Answer 9

Reference class notes
Group pressure that increases risk of the group making flawed decisions by leading to reduced mental efficiency reality testing, and moral judgment.
- break the group into two subgroups from time to time
-remain impartial and refrain from stating pref.
- have more than one group work on the same problem

Nasa o-ring failure is an example of bad group think…

Question 10

What are the 6 tools for making better decision making?

Answer 10

Nominal group technique - all members participate…avoids group think (pros and cons)
Delphi technique -written responses to questionnaires. No in person meetings
Majority rule-most votes win
Consensus - everyone has to agree
GDSS- interactive computer system, complicated and expensive
Decision trees- diagrams that create decisions based on yes/no answers (creates consistency)

Question 11

Flaws of the rational decision making model

Answer 11

Assumes that people understand what the decision to be made is
Assumes that people know all their available choices
Assumes there are no perception bias
Analysis paralysis

Question 12

Dimensions of creativity

Answer 12

Fluency - number of ideas
Flexibility -different ideas
Originality-unique