Chapter 2 Flashcards
What is a decision?
A choice among two or more alternatives.
What is the first step in the decision-making process?
Identify a Problem.
Define ‘problem’ in the context of decision making.
An obstacle that makes it difficult to achieve a desired goal or purpose.
What is the second step in the decision-making process?
Identify the Decision Criteria.
What are decision criteria?
Factors that are important to resolving the problem.
What is the third step in the decision-making process?
Allocate Weights to the Criteria.
What does it mean to allocate weights to criteria?
To prioritize the criteria based on their importance.
What is the fourth step in the decision-making process?
Develop Alternatives.
What is the fifth step in the decision-making process?
Analyze Alternatives.
What is the sixth step in the decision-making process?
Select an Alternative.
What is the seventh step in the decision-making process?
Implement the Alternative.
What is the eighth step in the decision-making process?
Evaluate Decision Effectiveness.
What is rational decision making?
Choices that are logical and consistent and maximize value.
Define ‘bounded rationality’.
Decision making that’s rational, but limited by an individual’s ability to process information.
What does ‘satisficing’ mean?
Accepting solutions that are ‘good enough’.
What is intuitive decision making?
Making decisions on the basis of experience, feelings, and accumulated judgment.
What is evidence-based management?
The systematic use of the best available evidence to improve management practice.
What is crowdsourcing?
A decision-making approach where you solicit ideas and input from a network of people outside of the traditional set of decision makers.
What are structured problems?
Straightforward, familiar, and easily defined problems.
What are programmed decisions?
Repetitive decisions that can be handled by a routine approach.
Define ‘unstructured problems’.
Problems that are new or unusual and for which information is ambiguous or incomplete.
What are the four decision-making styles?
- Directive style
- Analytic style
- Conceptual style
- Behavioral style
What characterizes the directive decision-making style?
Low tolerance for ambiguity and seek rationality.
What characterizes the analytic decision-making style?
Seek rationality but have a higher tolerance for ambiguity.
What is the conceptual decision-making style?
Intuitive decision makers with a high tolerance for ambiguity.
What characterizes the behavioral decision-making style?
Intuitive decision makers with a low tolerance for ambiguity.
What are heuristics?
Rules of thumb that help make sense of complex, uncertain, or ambiguous information.
What is overconfidence bias?
Holding unrealistically positive views of oneself and one’s performance.
What is the immediate gratification bias?
Choosing alternatives that offer immediate rewards and avoid immediate costs.
What is the anchoring effect?
Fixating on initial information and ignoring subsequent information.
What is selective perception bias?
Selecting, organizing and interpreting events based on the decision maker’s biased perceptions.
What is confirmation bias?
Seeking out information that reaffirms past choices while discounting contradictory information.
What is framing bias?
Selecting and highlighting certain aspects of a situation while ignoring other aspects.
What is availability bias?
Losing decision-making objectivity by focusing on the most recent events.
What is representation bias?
Drawing analogies and seeing identical situations when none exist.
What is randomness bias?
Creating unfounded meaning out of random events.
What are sunk costs errors?
Forgetting that current actions cannot influence past events and relate only to future consequences.
What is self-serving bias?
Taking quick credit for successes and blaming outside factors for failures.
What is hindsight bias?
Mistakenly believing that an event could have been predicted once the actual outcome is known.
What is design thinking?
Approaching management problems as designers approach design problems.
What is big data?
The vast amount of quantifiable data that can be analyzed by highly sophisticated data processing.
What is artificial intelligence?
Uses computing power to solve complex problems.
What is machine learning?
A method of data analysis that automates analytical model building.
What is deep learning?
A subset of machine learning that uses algorithms to create a hierarchical level of artificial neural networks.
What is analytics?
The use of mathematics, statistics, predictive modeling, and machine learning to find meaningful patterns in a data set.
