chapter 12: decision making Flashcards
rational decision making
6 step decision making process that describes how individuals behave in order to maximize outcomes
Issues w Rational Decision making Model
problem clarity know options clear preferences constant preferences no time or cost constraints maximum payoff
bound rationality
limits ones ability to interpret, process and act on information
statisficing
identifying the solution as good enough- first acceptable option
Intuition
non-conscious process created from own experiences
Common Biases in Decision Making
overconfidence (belief in own ability)
achoring (first information anchors)
confirmation bias (selecting facts that support)
availability bias (most recent/vivid info)
escalation of commitment (bus waiting)
randomness error (creating meaning out of)
risk aversion (sure thing over risk)
hindsight bias (believing it could hav been predicted after)
knowledge management
organizing and distributing an organizations collective wisdom so it gets to the right people at the right time
groupthink
when group pressures for conformity prevent the group from critically appraising ideas
group shift
initial positions of individual memers of a group are exaggerated toward a more extreme position
nominal group technique
individual idea
group discussion
individual vote/analysis
decision
electronic meeting
allows for anonymity of comments and aggregation of votes
3 Component Model of Creativity
Expertise
Creative Thinking Skills
Intrinsic Task Motivation
Ethics
moral values that guide our behaviour and inform us whether actions are right or wrong
utilitarianism
greater good outcome
factors affecting ethica decision making behaviour
stage of moral development
locus of control
organizational environment
