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comm 222: organizational behavior > chapter 11: decision making > Flashcards

chapter 11: decision making Flashcards

1
Q

define decision making

A

the p​rocess​of developing a commitment to some course of action

can also be described as a process of problem solving

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2
Q

what does decision making involve?

A

Making a choice among several actions alternatives

Making a commitment of resources (time, money or personnel)

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3
Q

when does a problem exist?

A

exists when a gap is perceived between some existing state and some desired state

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4
Q

Well-structured problems

A

the existing state and desired states are clear

how to get from one state to the other is fairly obvious

the solutions do not create much controversy

They are repetitive & familiar

They can be programmed

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5
Q

what is the most standardized way of solving a well-structured problem

A

by programing them

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6
Q

what does programing a well-structured problem do?

A

enable the decision maker to go directly from problem identification to solution

give rules, routines, standard operating procedures, rules of thumb

provide a useful means of solving well structured problems

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7
Q

what is a bad programmed solution?

A

a bad solution to a well-structured problem

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8
Q

Ill-structured problems

A

existing and desired states are unclear

the method of getting to the desired state is unknown

often risky decisions

They are unique and unusual problems that have not been encountered before

They tend to be complex and involve a high degree of uncertainty

They frequently arouse controversy & conflict

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9
Q

can Ill-structured problems be solved with programmed decisions?

A

nah boy

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10
Q

what do you need to make a perfectly rational decision?

A

you need to have all of the relevant information:

cost effectively

low cost

no cost

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11
Q

what is perfect rationality

A

decision strategy that is:

Completely informed

perfectly logical

oriented toward economic gain

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12
Q

what is the rational decision-making model?

A
  1. identify the problem
  2. search for relevant info
  3. develop alternative solutions
  4. evaluate alternative solutions
  5. choose the best solution
  6. implement the chosen solution
  7. monitor and evaluate the chosen solution
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13
Q

what is an economic person

A

can gather information without cost and is completely informed

Is perfectly logical, and has only one criterion for decision making: ​economic gain

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14
Q

do the perfectly rational characteristics of perfect rationality exist in real decision makers?

A

nah boy

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15
Q

bounded rationality

A

since rational characteristics of Economic Person do not exist in real decision makers, administrators use bounded rationality

While they try to act rationally, they are limited in their capacity to:

Acquire and process information

Time constraints

Political considerations

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16
Q

what illustrates bounded rationality?

A

Framing & cognitive biases

the impact of emotions & mood on decisions

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17
Q

what is framing

A

huge impact of the way we interpret situations

refers to aspects of the presentation of information about a problem that are assumed by decision makers

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18
Q

true or false

How problems and decisions are framed can have a powerful impact on resulting decisions

A

true

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19
Q

Cognitive biases

A

tendencies to acquire & process information in a particular way that is prone to error

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20
Q

why is it that cognitive biases lead to error?

A

They involve assumptions & shortcuts

their goal is to improve decision making efficiency

frequently lead to error instead

basically, being on slack mode

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21
Q

what do ​framing and cognitive biases illustrate?

A

the operation of bounded reality

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22
Q

what are the difficulties in problem identification that stem from bounded rationality?

A

Perceptual defence

Problem defined in terms of functional specialty (people fix problems by using their specific knowledge)

Problem defined in terms of solution

Problem diagnosed in terms of symptoms (think on cold and sniffing)

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23
Q

what is the role of framing in problem identification?

A

When a problem is identified, it is framed in some way

the people in charge of decision making should try out alternative frames

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24
Q

how much access to information does the perfectly rational decision maker have?

A

he has free and instantaneous access to all information necessary to clarify the problem and develop alternative solutions

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25
Q

what does sounded rationality suggest about information search and access?

A

it can be slow and costly

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26
Q

true or false

Decision makers can have too little or too much information

A

true

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27
Q

what contributes to having too little information?

A

Several cognitive biases contribute to this

ex: when you use whatever information is most readily available
ex: the tendency to be overconfident which is exacerbated by confirmation bias

confirmation bias

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28
Q

confirmation bias

A

the tendency to seek out information that conforms to one’s own definition of or solution to a problem

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29
Q

what contributes to having too much information?

A

Information overload​is the reception of more information than is necessary to make effective decisions

People have a cognitive bias to value advice for which they have paid over free advice of equal quality

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30
Q

​maximization

A

he choice of the decision alternative with the greatest expected value

The perfectly rational decision maker exhibits m​aximization

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31
Q

are all of the alternative solutions and the probabilities of success known when a decision maker is working under bounded rationality?

A

no, they are not all known

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32
Q

how are people in general at statisticians?

A

People are especially weak intuitive statisticians

frequently violate standard statistical principles

they are poor at revising estimates of probabilities & values as they acquire additional information

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33
Q

small or large samples are better?

A

Large samples warrant more confidence than small samples

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34
Q

do decision makers rarely believe or strongly believe that complex chain of events will occur when taking.a decision or not?

A

Decision makers often overestimate the odds of complex chains of events occurring

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35
Q

a decision maker working under bounded rationality usually satisfices or maximizes?

A

satisfices

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36
Q

satisficing

A

the decision maker establishes an adequate level of acceptability for a solution to a problem

then screens solutions until he or she finds one that exceeds this level

When this occurs, evaluation of alternatives ceases, and the solution is chosen for implementation

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37
Q

when to people tend to make risky business decisions

A

When people view a problem as a choice between losses

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38
Q

when do people tend to make conservative decisions

A

When people frame the alternatives as a choice between gains

39
Q

what are the cons of being dependent on others when decision makers try to have their decisions implement?

A

it might be difficult to anticipate their ability or motivation to do so (implementors)

implementors and decisions makers are not the same people

40
Q

what type of teams can help the problems created between decision makers and the implementors?

A

Cross-functional teams

41
Q

how should a rational decision maker be able to evaluate the effectiveness of a decision?

A

with calm and objective detachment

bounded decision maker might bug big time at this stage

42
Q

why can bounded decisions makers bugs at the stage of evaluating a solution?

A

People are overconfident about the adequacy of their decision

Substantial dissonance can be aroused when a decision turns out to be faulty

The decision maker may devote his or her energy to trying to justify a faulty decision

43
Q

how do you prevent substantial dissonance when evaluating decisions?

A

decision makers avoid careful tests of the adequacy of the

decision

44
Q

what hindsight?

A

the tendency to review the decision-making process that was used to find what was done right or wrong

tendency of people to overestimate their ability to have predicted an outcome that could not possibly have been predicted

tendency to take personal responsibility for successful decision outcomes while denying responsibility for unsuccessful outcomes

45
Q

Escalation of commitment

A

the tendency to invest additional resources in an apparently failing course of action

People often “throw good resources after bad,” acting as if they can recoup sunk costs

46
Q

are groups or individuals more prone to escalation of commitment?

A

groups

47
Q

Reasons for escalation of commitment

A

Dissonance reduction.

Social norms for consistent behaviour.

Motivation to not appear wasteful.

The way the problem is framed.

Personality, moods, and emotions.

48
Q

Preventing escalation of commitment

A

Encourage continuous experimentation with reframing the problem

Shift the frame to saving rather than spending

Set specific goals for the project in advance that must be met if more resources are to be invested

Place and emphasis in evaluating managers on h​ow​ they made decisions and less on decision outcomes.

Separate initial and subsequent decision making

49
Q

How do Emotions and moods affect decision making

A

Strong emotions frequently figure in the decision-making process that corrects ethical errors

strong emotion has also been implicated in creative decision making & the proper use of intuition to solve problems

50
Q

what is a con regarding strong emotions in decision making

A

people experiencing strong emotions are often self-focused and distracted from the actual demands of the problem at hand

51
Q

what is a benefit of strong emotions when properly controlled

A

can lead to successful shot-circuiting of the steps in the rational model when speed is of the essence

52
Q

how do moods influence decision making

A

Mood a​ffects w​hat​& h​ow​people think in making decisions

it has the greatest impact on uncertain, ambiguous decisions of the type that are especially crucial for organizations

53
Q

how do people with POSITIVE moods generally act in organizations

A

tend to remember positive information

tend to evaluate objects, people, and events more positively

tend to overestimate the likelihood that good events will occur and underestimate the occurrence of bad events

promote more creative, intuitive decisions making

54
Q

what can happen if excess optimism is controlled?

A

those in a good mood can make c​reative decisions

55
Q

what can happen if excess pessimism is controlled?

A

those in a negative mood can p​rocess info carefully &

effectively

56
Q

in the problem identification stage (1), how do individuals with perfect rationality act?

A

easy, accurate perception of gaps that constitute problem

57
Q

in the problem identification stage (1), how do individuals with bounded rationality act?

A

perceptual defense

jump to solutions

attention to symptoms rather than problems

mood affects memory

58
Q

in the information research stage (2), how do individuals with perfect rationality act?

A

free

fast

right amount obtained

59
Q

in the information research stage (2), how do individuals with bounded rationality act?

A

slow

costly

reliance on flawed memory

obtain too little or too much info

60
Q

in the development of alternative solutions stage (3), how do individuals with perfect rationality act?

A

can conceive all of them

61
Q

in the development of alternative solutions stage (3), how do individuals with bounded rationality act?

A

not all of them are known

62
Q

in the evaluation of alternative solutions stage (4), how do individuals with perfect rationality act?

A

ultimate value of each alternative solution known

probability of each alternative solution knows

only criterion is economic gain

63
Q

in the evaluation of alternative solutions stage (4), how do individuals with bounded rationality act?

A

potential ignorance of miscalculation of values on probabilities

criteria include political factors

affected by mood

64
Q

in the solution choice stage (5), how do individuals with perfect rationality act?

A

maximizing

65
Q

in the solution choice stage (5), how do individuals with bounded rationality act?

A

satisfices

66
Q

in the solution implementation stage (6), how do individuals with perfect rationality act?

A

considered the evaluation of alternatives

67
Q

in the solution implementation stage (6), how do individuals with bounded rationality act?

A

may be difficult due to reliance on others

68
Q

in the solution evaluation stage (7), how do individuals with perfect rationality act?

A

objectively

69
Q

in the solution evaluation stage (7), how do individuals with bounded rationality act?

A

may involve justification

escalation due to sunk costs

faulty hindsight

70
Q

Why use groups for organizational decisions?

A

decision quality

decision acceptance and commitment

diffusion of responsibility

71
Q

how can groups make higher quality decisions than individuals?

A

Groups are more vigilant​ than individuals.

Groups can generate more ideas ​than individuals

Groups can evaluate ideas better​ than individuals

72
Q

how can groups increase acceptance and commitment

A

A group decision will be more acceptable to those involved

Acceptability is especially important in getting a decision implemented

73
Q

how can groups help with diffusion of responsibility? How can they share burden of the negative consequences of a poor decision?

A

No one person will be singled out for punishment

When this happens, individual group members often “abandon ship” and exhibit biased hindsight

74
Q

what are the disadvantages of group decision making

A

time

conflict

domination

groupthink

75
Q

how can time be a problem with group decision making?

A

Groups rarely work quickly or efficiently compared with individuals due to process losses

The time problem increases with group size

76
Q

how can group decision making lead to conflict?

A

Participants in group decisions may have their own personal axes to grind or their own resources to protect

Groups will make better decisions when their members feel psychologically safe

77
Q

how can domination be a problem with group decision making?

A

When meetings are dominated by a single individual or a small coalition, the advantages of group decision making will not be realized

Domination is not likely to lead to group acceptance and commitment.

If the dominant person is misinformed, the group decision is likely to be ineffective

78
Q

how does groupthink affect group decision making?

A

damages the mental efficiency, reality testing, and moral
judgment of decision-making groups.

Unanimous acceptance of decisions is stressed over quality of decisions

79
Q

what are the factors that lead to groupthink?

A

high group cohesiveness.

Strong identification with the group

Concern for approval from the group

Isolation of the group from other sources of information. (keep info to not disturb the
others or change the course of action)

The promotion of a particular decision by the group leader

80
Q

what is the strongest factor that contributes to groupthink?

A

The promotion of a particular decision by the group leader

81
Q

what are the groupthink symptoms

A

Illusion of invulnerability

Illusion of unanimity

Illusion of morality

Rationalization

Stereotypes of outsiders

Pressure for conformity

Self-censorship

Mindguards

82
Q

Illusion of invulnerability

A

Members are overconfident and willing to assume great risks

they ignore obvious danger signals

“Because everybody agree, everybody cant be wrong.

83
Q

Illusion of unanimity

A

Members perceive that unanimous support exists for their chosen course of action

84
Q

Illusion of morality

A

The decisions the group adopts are perceived as m​orally ​correct

“We think we are the right ones.”

85
Q

Rationalization

A

We try to justify somehow

86
Q

Stereotypes of outsiders

A

The group constructs unfavourable stereotypes of those outside the group who are the targets of their decisions

“If we are right, the others might be wrong.”

87
Q

Pressure for conformity

A

Members pressure each other to fall in line and conform with the group’s view

p​eople can have a different point of view, but they shut their mouth up

88
Q

Self-censorship

A

Members convince themselves to avoid voicing opinions contrary to the group

89
Q

Mindguards

A

Some group members may adopt the role of “protecting” the group from information that goes against its decisions

90
Q

what are strategies to prevent groupthink?

A

Leaders should establish norms that encourage and even reward responsible dissent

Outside experts should be brought in from time to time to challenge the group’s views

91
Q

what is a risky shift?

A

tendency for groups to make riskier decisions than the average risk initially advocated by their individual members

92
Q

what is a conservative shift?

A

the tendency for groups to make less risky decisions than the average risk initially advocated by their individual members

93
Q

what are two main factors that explain the occurrence of risky and conservative shifts?

A

Group discussion generates ideas & arguments that individual members have not considered before

Group members try to present themselves as basically similar to other members but “even better”

94
Q

which types of groups polarize more than face to face groups?

A

Groups that communicate via computer

comm 222: organizational behavior (13 decks)

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